Why should you startup a business from scratch when you can save time and gain access to credit easier with a shelf corporation?
Starting up a business from scratch entails a lot of details, details, details! These details require a lot of time in terms of development and research, which in turn call for big expenses. A startup company, because of its very “young” age, has a limited operating history that makes access to credit and investment capital difficult and opportunities to bid on contracts slim.
Why then as a business owner should you opt for a startup when you can buy a shelf corporation that already has everything you need to immediately start operating?
In case you’re undecided yet, here are the major benefits of purchasing a shelf corporation:
Save time. You don’t need to go through the process of creating the corporation yourself, thus, you save a lot of time and you can start managing your business right away.
- Immediate availability. No need to wait for government filing. A shelf company is ready to go!
- Credibility to customers. A shelf company is an aged company so your customers are assured that you’ve been in business for a time, thus, increasing your credibility and years of experience.
- Increased opportunities to bid on government contracts. Most state and federal contracts only consider businesses that are at least two years old.
- Easier access to credit. Customers are not the only ones who trust aged companies more, but lenders as well. You may have a difficult time getting the financing you need if you’re new in business. A shelf corporation, because of it longstanding history, increases your chance of getting the credit you need to expand your business. Many lenders only lend to companies that are at least two years old.
- Easier to obtain venture capital. Investors favor companies that have been in operations for many years.
Taking the road towards a shelf corporation should still be treated with caution. Make sure that you only purchase a shelf corporation that has a clean customer record. There should be no filed complaints against its name as you don’t want to start managing a company that is drowned in lawsuits and negative feedbacks. This should not be an issue if it is a legitimate shelf corporation that has never been used and only “shelved” since its birth.
Research and consider the prices of shelf corporations. A shelf corporation does not necessarily offer tax shelters and benefits so make sure that you only purchase a legitimate, reasonably-priced one.
It is still your final call whether to purchase a shelf corporation or startup a company from scratch. Take time to consider and weigh your options. It is after all your hard-earned capital that you are about to invest so choose and decide wisely. Consult with a registered Credit Advisor for more information.
For more great credit tips and news tune in to The Graceful Credit Show live every Sunday at 3:00pm EST on WCHB News Talk AM 1200.
GCS representatives are experts in Personal Credit Restoration, Business Credit Building, Credit and Debt Counseling, and Debt Settlement. GCS is committed to helping people reach their financial goals and dreams through trusted methods that guarantee results.
In order for GCS to get a jump start in helping you reach your goals visit www.GracefulCreditSolutions.com, complete Quick Quote, and an experienced Credit Advisor will contact you during your scheduled consultation to better assist you.
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