Are Shelf Corporations Legal

Whether or not a shelf corporation is ultimately considered legal or illegal comes down to two important factors.

Are shelf corporations legal.

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. Shell corporations are not illegal and they may have legitimate business purposes. Shell corporation law and legal definition a shell corporation is a company which serves as a vehicle for business transactions without having any significant assets or operations. 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 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. A shelf corporation shelf company or aged corporation is a company or corporation that has had no activity. Was established on october 19 1992 and published a bi annual circular that was sent out to its fan club. It was created and left with no activity metaphorically put on the shelf to age.

Looking for aged or shelf corporation. They function as transactional vehicles for a variety of firms and for a myriad of. 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.

Wild west arts club inc. 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. Shell corporations are legitimate legal entities that do not possess actual assets or run business operations. It is in good standing with current tax returns.

While they cost a bit more they are well worth the money as these established companies often have immediate credit.