Are Shelf Corporations Legal

They function as transactional vehicles for a variety of firms and for a myriad of.

Are shelf corporations legal.

A person forms a company usually in a state like montana or wyoming where the filing fees are inexpensive and puts it on a shelf. A shelf corporation doesn t engage in any real business but during the aging period some efforts may be undertaken to establish a credit history file basic tax returns open a business bank account and other simple actions to demonstrate some activity. While they cost a bit more they are well worth the money as these established companies often have immediate credit. Was established on october 19 1992 and published a bi annual circular that was sent out to its fan club.

Wild west arts club inc. It is in good standing with current tax returns. If you buy a shelf corporation with a seasoned credit profile and use that credit to secure a loan you wouldn t have been able to qualify for normally you may be crossing the line. It all depends upon how a shelf llc is created and how it is used.

It was created and left with no activity metaphorically put on the shelf to age. Looking for aged or shelf corporation. Shelf corporations are legal and do have legitimate purposes. They do nothing with the corporation other than file the annual reports and cover the annual fees.

The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one. Whether or not a shelf corporation is ultimately considered legal or illegal comes down to two important factors. Shell corporations are not illegal and they may have legitimate business purposes. They are frequently used for holding personal or business assets.

A shelf corporation is a company that was created years ago for the sole purpose of being sold in the future simply for the value of its age.