Shelf Corporation Key Terms

Learn more about owning and working with shelf corporations

A shelf corporation (or aged corporation) is a corporation that has been previously established. This type of corporation gets its name from the idea of the abandoned business being put on a shelf until a new owner buys it. Shelf corporations are legal and can benefit the new owner in many ways. A shelf corporation helps to establish credit faster and can potentially turn a quicker profit, because it does not take a long time to re-establish the corporation with the state.

 

Liability

Liability is an obligation or responsibility a business must complete. In shelf corporations, there may be an existing liability on a contract, especially from those with the government. This liability can help the company continue to establish credit.
Try: Companies Incorporated provides a list of additional benefits for choosing a shelf corporation, including the increased liability for certain contracts.

Registered agent

A registered agent is a person designated to file and receive paperwork during the process of creating or buying a corporation. The registered agent is responsible for accepting all documents at a single address during business hours.
Try: InCorp provides answers to frequently asked questions about registered agents and using registered agents to create or buy a corporation.

Business credit

Business credit is the financial standing of a company. Since most shelf corporations have already been established and shelved without any existing liabilities, purchasing a shelf corporation gives the new owners instant business credit.
Try: Shelf Corporation Search provides information on how a shelf corporation can help to establish credit quickly and provide businesses with a good head start.

Beneficial owners

The beneficial owners of a shelf corporation are the owners that have a financial interest in the business. These are the people that will benefit when the business makes a profit.
Try: The Internal Revenue Service (IRS) provides information on how profits for beneficial owners are paid and taxed.

Secretary of State

The Office of the Secretary of State where the business is located accepts articles of incorporation for a new or established business.
Try: The California Secretary of State provides the documents necessary to be filed in that state to purchase a shelf corporation, reinstate the articles in the new owner's name and any amendments needed to the original company's documents.

Articles of incorporation

The articles of incorporation are any documents related to the creation or purchase of a corporation. These are the documents a registered agent must handle throughout the application process.
Try: Global Software & Computer Solution Centers provides a list of documentation that needs to be filed after purchasing a shelf corporation.

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