JUST GOT A 5 YEAR OLD SHELF CORPORATION

[WillfulNoncompliance]

Ok I just purchased a 5 year old shelf corporation that has no yearly fee (Colorado). I have the option of changing the name of the business and wondered if I should? Would I lose any history in doing that? The company does not have a D&B file as it only had a checking account. Should I get a new EIN or have the old one transferred over? Mailing address: keep everything in Colorado even though I am not located there?

Thanks

[greywolf]

No offense, but OMG you just got screwed. A shelf corp really only benefits you if it has documented age, and a D&B file. Just because it has 5 years of age at the SOS, doesn't mean creditors consider it 5 years old. Your EX/EQ file dates will show the company inactive for 5 years, and all of a sudden, activity. You might be able to backdate D&B, but the other two CRAs don't do that.

 

Go ahead, change the name to whatever you want, as the purpose of this shelf corp was defeated long before you even purchased it.

 

I would try to get your money back, and FAST.

[leaseadvice]

Ok I just purchased a 5 year old shelf corporation that has no yearly fee (Colorado). I have the option of changing the name of the business and wondered if I should? Would I lose any history in doing that? The company does not have a D&B file as it only had a checking account. Should I get a new EIN or have the old one transferred over? Mailing address: keep everything in Colorado even though I am not located there?

Thanks

 

I can give you lots of different reasons why your account will be flagged by any underwriter!!!

Get your money back asap!!!

[BRBiz]

No offense, but OMG you just got screwed. A shelf corp really only benefits you if it has documented age, and a D&B file. Just because it has 5 years of age at the SOS, doesn't mean creditors consider it 5 years old. Your EX/EQ file dates will show the company inactive for 5 years, and all of a sudden, activity. You might be able to backdate D&B, but the other two CRAs don't do that.

 

Go ahead, change the name to whatever you want, as the purpose of this shelf corp was defeated long before you even purchased it.

 

I would try to get your money back, and FAST.

 

And with that lack of any history it probably will be flagged as very high risk and make it harder to obtain any thing . You would have beenbetter off just starting a new company. Any time you change ownership and name it will raise flaggs. Its one thing to buy a business that has a history and change ownership and maybe the name but to buy a business that has no history and change everything is big red flag to all the CRA's.

 

Good Luck!

[WillfulNoncompliance]

OK sale maybe canceled. I know there is no credit history and I have to start from the beginning. Years ago when building business credit for another company a friend of mine was doing the same and we both had the same credit file. This was as you know there are only so many place you can go to start building your credit. His business corp was one that was inactive for years which he had to do a name change on. We both had the same credit profile almost as I had a bigger line with keybank. When applying for credit at Toyota he got $100,000 credit line and I got none. The only major difference between the two companies was the age. This is where I see value of aged corp.

[BRBiz]

OK sale maybe canceled. I know there is no credit history and I have to start from the beginning. Years ago when building business credit for another company a friend of mine was doing the same and we both had the same credit file. This was as you know there are only so many place you can go to start building your credit. His business corp was one that was inactive for years which he had to do a name change on. We both had the same credit profile almost as I had a bigger line with keybank. When applying for credit at Toyota he got $100,000 credit line and I got none. The only major difference between the two companies was the age. This is where I see value of aged corp.

 

He didn't change ownership on that corp though correct?

That is the big red flag , they look at that as basically starting over, plus every one from the banks to CRA's are alot carefuller today when looking at businesses when applying for things like cars or larger lines and not really with small credit line items. And they are well aware of shelf corps.

And when your not even in the state where the business is inc'd in .

[WillfulNoncompliance]

He did changed the ownership of the corp.

[cleanmaster]

Shele Corporation can work, if you dont chanage the name,and keep the one that came with the corp. and trust me the age well make a difference when go for bigger credit lines.