Aged & shelf companies
A shelf corporation, also called an aged corporation, is a corporation that has had no activity. It was created and put on the "shelf" to age. This corporation is then later usually sold to someone who would prefer to have an aged corporation rather than a new one. A business entity that is created through a process other than incorporation (such as a limited liability company) is simply called a shelf company.
Common reasons for buying a shelf corporation include:
- Saving the time involved in taking the steps to create a new corporation.
- Gaining the opportunity to bid on contracts. Some states require that your company be in business for a certain length of time.
- Creating an appearance of corporate longevity.
- Access to investment capital.
- Easier access to corporate credit.