Startups are booming worldwide, with the USA seeing a 24% increase in new businesses in the past year alone, according to the U.S. Census Bureau. Many new startups are emerging with technological advancements, improved access to funding, and a growing entrepreneurial spirit. However, starting a business, especially in this competitive time, comes with its own set of challenges. Factors such as getting adequate capital, access to credit, building a strong management team, and achieving product-market fit have a significant impact on a new startup. Fortunately, the solution to all these challenges is investing in shelf corporations.
Why Should You Consider A Shelf Corporation for Your Startup?
You might wonder, “Why should I consider a shelf corporation for my startup?” Let’s start with the basics. Every entrepreneur must be familiar that being in business for a long duration is always considered beneficial rather than being a new player in the market. Shelf corporations do just that; they are companies that were legally established many years ago but are not in operation now. Basically, these corporations are like a fine wine that has been ageing on the shelf for a long time and is ready to be sold to businesses like yours to come along and put them to good use. You can learn everything about shelf corporations in this comprehensive guide.
Using a shelf corporation can provide your startup with an established history that can be incredibly beneficial for your business in a variety of ways. Let’s talk about them one by one.
Benefits of Using Shelf Corporations
As we discussed, a long corporate history is one of the main reasons for investing in a shelf corporation. In a broader sense, this one reason can be broken down into several strategic benefits that can be useful for your startup in multiple ways:
1. Better Credibility
A company with a more extended operational history can significantly influence a startup’s credibility in the eyes of investors, partners, and, more importantly, customers. If a company exists for several years, even without being in operation, it is perceived to be much more reliable and stable. This perception can open the door to new opportunities, helping you build trust and establish a strong market reputation.
2. Easy Access to Finance
Getting a loan from a financial institution can be quite a challenge for any startup. Most lenders perceive new businesses as high risk due to their lack of credit history and operational track record. Thanks to the shelf corporation you invested in, your long-running startup has a much higher chance of securing loans and other forms of credit from most financial institutions.
3. Eligibility for Contracts
Many contracts require a company to be in operation for a certain period of time. A shelf corporation can help you meet these requirements, which can otherwise make you ineligible as a newly formed company. Additionally, you can apply for many government bidding contracts in the United States using your shelf corporation.
How to Acquire a Shelf Corporation
By now, you must have understood how beneficial a shelf corporation is for your startup. If you are considering this option, let’s discuss how you can acquire one step-by-step.
1. Identify Your Requirements
First things first, you must know your specific requirements before acquiring a shelf corporation. Decide why you need the shelf corporation and how it can be beneficial to your startup. Consider factors impacting your startup, such as getting loans, establishing business relationships, obtaining certain contracts, attracting investors, building partnerships, and how a long-running corporation aligns with your business goals.
2. Choose a Reputable Provider
Once you have identified your requirements, it’s time to carefully look for a company that specialises in selling shelf corporations and has a good market reputation. Conduct thorough market research to compare different providers. It is important to look for reviews, ask for references, and ensure that the provider is dependable.
3. Check the Corporation’s History
After finding a reliable provider, the next step is to check the history of the corporation you are considering for your startup. This is an essential step as it involves checking if the company has any outstanding dues, is facing any legal issues, or is facing other negative factors that can cause trouble in the future. Ask your provider for the company’s complete history and take the time to review it carefully.
4. Understanding the Prices
When purchasing a shelf corporation, many prices are involved, including the purchase price, fees varying for various states, and ongoing maintenance charges. Fully understand these expenses, calculate all the prices accordingly and check if they are within your budget.
5. Complete the Transfer
Once you have verified all the details and understood the pricing structure, you can proceed with the ownership transfer. This step typically involves signing the purchase agreement and transferring ownership of the corporation. Your provider can help you in completing all the formalities. However, you should make sure of the following:
- Sign all the necessary legal documents about the purchase agreement.
- Update the official records to reflect new ownership.
- Inform all the relevant state and federal authorities about the change of ownership.
All these steps can be easily carried out with the help of a reliable shelf corporation provider, ensuring a smooth and efficient transition. Wholesale Shelf Corporation is one of the leading providers in this space, known for offering a vast range of dependable aged corporations that cater to different business needs.
Common Concerns and Misconceptions
Every business owner wonders, “Is it even legal to use a shelf corporation?” The answer is yes. Using a shelf corporation is completely legal, and many startups are benefitting from this strategy to gain a competitive edge in the marketplace. However, it is important to use it ethically and responsibly because misusing the corporation’s history can lead to legal issues.
Also Read: Aged Corporation For Sale Is A Game Changer In IT Business
Another common concern that businesses perceive is that shelf corporations guarantee success. Growth and success depend entirely on your ability to perform well, use effective business strategies, and efficiently market your products/services.
Conclusion
Using a shelf corporation can significantly help your startup by enhancing your credibility, obtaining instant loans, bidding on various government contracts, and building a strong market reputation. A shelf corporation can help overcome some of the common challenges faced by most startups.
So, if you are ready to take your startup to unprecedented heights, let Wholesale Shelf Corporations help you find the best shelf corporation in the United States.
 new.png){kind=small}
