**I think I discovered something - aged corps**

[breeze]

I got the docs I ordered from the state of GA today. I looked back at the original filings - this corp was formed in 1994, dissolved in 1996, reactivated in 2003, when it was sold to the company I bought it from. However, all my relevant paperwork, and the dates on the GA SOS site, say the date of Inc is 1994. So, for all practical purposes, I have a 10 yr old corp.

 

Just a guess, but I think someone searched inactive or dissolved corps, contacted the original owner, and probably purchased the corp for maybe the money that was already put into it, or something like that.

 

For those of you who are interested in acquiring an aged corp cheap, you might try that kind of search, see if you can buy one that isn't really on the market. Due diligence would be required to make sure the corp is unencumbered, and there may be some kind of insurance available (similar to title insurance), I'm not sure. Other than that, I think this would be a piece of cake, especially if you want to incorporate in your own state. Even if you really want WY, you can transfer it after you reactivate and amend it.

[Suzy]

HMMMM food for thought! Thanks for posting that!

[c m chase]

That does make me think about something.

 

I had a Sole P when I was about 23. I just kinda quit doing it and never did anything else with taxes and such. (It was an eBay biz...I got my wholesalers license and all....never paid taxes more on it because I didn't claim much once I was actually licensed).

 

I wonder if it still actually exists?? Anyone know if a Sole P just goes away after a certain amount of time or what? Hmmmmm. Haven't thought about that company since I got sick of selling on eBay. :roll:

 

Curious. :shock:

[breeze]

A sole prop is not an entity like a corp is. A sole prop, in effect is the name you take for yourself in order to do business. I don't know that it would benefit you re business credit, even if you have some kind of filing date, because a personal guarantee always exists with a sole prop.

 

I've been a sole prop in VA for several years - I don't have to file anything iwth the state unless I want to protect the name (then I file for a fictitious name - a DBA, and as an insurance agent, I don't have to have a business license. I did try that at first, in another city. I very quickly had a building inspector and OSHA wanting to come to my house to inspect the "premises," (the "extra" room was turned into an office), so I decided against it for the future, LOL.

[c m chase]

Oh. True.

 

But I wonder what happened to my EIN, in that case? I got it so it could be used as a wholesaler number....I was selling new clothing. Probably just sitting there collecting dust? :?

[breeze]

Check with the IRS - if you dare, hehe. Seriously, you can probably just try it out on some website and see if it's still good.

[c m chase]

:wink: Thanks Breezy. I'll have to do some major searching!

[Rosebud]

When search my state's website for corporations with a similar name, I saw tons of defunct corporation no longer in use. One could contact the owners of those corps, but them and resell them for a nice profit.

[breeze]

yep, if you can buy one for a few hundred dollars and sell it for thousands...

[OhBoyOhBoy]

Oh. True.

 

But I wonder what happened to my EIN, in that case? I got it so it could be used as a wholesaler number....I was selling new clothing. Probably just sitting there collecting dust? :?

 

I took a tax class and they said that they will hold on to your EIN because when people stop and start biz's they want to kepep them with the same # they encourage it, so you could prob call and get it re activated!

[c m chase]

:shock: THANKS!

[javaowl]

Be careful if you are considering purchasing an "inactive" corporation due to dissolution, suspension or which is defunct. This type of corporation has conducted business previously. There is a small but very significant difference between a "shelf corporation" aka an "aged corporation" and an "inactive" aka "dissolved" or defunct corporation.

 

A shelf or aged corporation has conducted no business at all and has been "put on a shelf" so to speak for future use. From time to time, the accidental neglect in filing various corporation reports or payment of taxes in a timely manner may cause it to become inactive. Many Secretary of State databases will reflect the reason for a period of inactivity (whether due to taxes or dissolution). Payment of the taxes or filing of the necessary corp docs will usually reinstate a corporation aka reviving it.

 

Purchasing a corporation which has been dissolved due to being "suspended" or which is "defunct" means this type of corporation has most likely, conducted some business. As a purchaser, you will inherit all of their baggage as well as any bad reputation or transactions in which they may have been involved. Although changing the name of the corporation is one step towards a solution, the name change will be reflected with the Secretary of State so its not 'invisible'. Amendments to the Articles and any previous negligence may be listed in the "memo" or "note" section of the database. Business merchants have memories like elephants so if your corporation burned a bridge with a particular business creditor (slow pay, fraud, non payment), the merchant will be hard convinced to do business with the corporation even under new ownership and may penalize you with COD, prepayment or secured by credit card billings. Due diligence for this type of corporation would be not only UCC filings, civil and criminal filings on both the corporation and the individuals and tax filings but definitely an in-depth D&B report; AG and BBB reports - this would need to be conducted in each state the corporation did business in, not just the incorporation state.

 

Just didn't want the two to get confused.

[Rosebud]

Due diligence for this type of corporation would be not only UCC filings, civil and criminal filings on both the corporation and the individuals and tax filings but definitely an in-depth D&B report; AG and BBB reports - this would need to be conducted in each state the corporation did business in, not just the incorporation state.

 

Just didn't want the two to get confused.

 

Thanks for the information! I was thinking of looking for corps that were registered, but never got off the ground. I was thinking the due diligence on this type of business would be a bear, but it could be very profitable.

[OhBoyOhBoy]

I got the docs I ordered from the state of GA today. I looked back at the original filings - this corp was formed in 1994, dissolved in 1996, reactivated in 2003, when it was sold to the company I bought it from. However, all my relevant paperwork, and the dates on the GA SOS site, say the date of Inc is 1994. So, for all practical purposes, I have a 10 yr old corp.

 

Just a guess, but I think someone searched inactive or dissolved corps, contacted the original owner, and probably purchased the corp for maybe the money that was already put into it, or something like that.

 

For those of you who are interested in acquiring an aged corp cheap, you might try that kind of search, see if you can buy one that isn't really on the market. Due diligence would be required to make sure the corp is unencumbered, and there may be some kind of insurance available (similar to title insurance), I'm not sure. Other than that, I think this would be a piece of cake, especially if you want to incorporate in your own state. Even if you really want WY, you can transfer it after you reactivate and amend it.

 

I discovered my states (MA) Corporations site, and it has every corp in MA and there standing, my question is if it says dissovled in such and sucha date, that means it is no longer in use right? It has the Presidents name and address listed would you suggest I contact that person? What would I say...Hi I read that you ran a corporation back in '89 in it tanked...could I buy it from you?

 

Plus HOw much would I say I would pay, and wouldnt they wonder why I wanna buy their old corp... :?

[breeze]

LOL, I don't know that you need to give them the real reason. Then they would get ideas about what it's worth. Forced to give a reason: "I wanted that name... for my business" or some other surface reason.

 

You'll be talking to someone who is going to get green money for an intangible item that is worthless as far as they are concerned. Stick the money in front of them, if their questions continue, go on to the next one on your list. If they're just hassling you, they'll change their mind. If they're not going to sell it without some kind of disclosure, don't deal with them. Easy. Money talks.

 

And don't say "I'm not telling...." say, "I have xxxx in xxx minutes

(another appointment, meeting etc), but I'll be glad to discuss it later, here's my number. Let me know if you decide to accept my offer..."

 

That's one way, I'm sure others will have even better ideas, hehe. We got some smarrrrrrrrrrrt people here.

 

Don't forget, you can change the name, the owner's name, the state, if needed, take it into an entirely different field of endeavor, whatever.

 

As far as what to say about how much you would pay - first say "would you be interested in selling it?" if they say "well, unnnnnn sure. What's it worth?" I would offer less than they have paid out in fees and filings. Then know what they sell for in the market, decide how much you want to pay... negotiate with that info. So, you offer $100 (it's worthless like it is, right?), they say," well, I'm not sure why you think it's worth that, but if I'm going to this trouble, I want at least $1,000" (they were supposedly in business once, right?). or "How did you arrive at that amount?" "Well, I felt I should offer you something for it..." Then dicker with them.

 

Don't forget, you can change the name, the owner's name, the state, if needed, take it into an entirely different field of endeavor, whatever.

[BizCredit]

 

 

Don't forget, you can change the name, the owner's name, the state, if needed, take it into an entirely different field of endeavor, whatever.

 

you can do businessin any sate, but in general (there are exceptions) you cannot change the STATE of incorporation.

[ArmySarge6]

OK,

 

Now that I have found some inactive corporations and I have their RA info, is there a sample letter I could send to request information on if the corp is for sale?

 

TIA

[againstallodds]

Breeze, were you able to get credit with your aged Corp? I checked around and found out that its almost impossible to get a duns, etc because they are so thorough in there investigations. Whats your experience? Thanks

[Logan]

just change your DATE of incorporation on the DUNS site to reflect the year you want it to. You could have been in Business for 2 years before you decided to get a Duns number. who's to know. (this is not advice)

[ddlingo]

I have looked up my old corporation that I formed in 2000. I called and found out that it would only take $220 to reinstate the corpration. I would have to find the old EIN or call somewhere to have it sent to me but is this really worth it? Will I then be blessed with a 4 year old corp? If so what else do I need to do to start reaping some of the benifits? This is a Georgia corp. BTW.

[Java Tony]

I have looked up my old corporation that I formed in 2000. I called and found out that it would only take $220 to reinstate the corpration.  I would have to find the old EIN or call somewhere to have it sent to me but is this really worth it?  Will I then be blessed with a 4 year old corp?  If so what else do I need to do to start reaping some of the benifits? This is a Georgia corp. BTW.

<{POST_SNAPBACK}>

 

yes it is possible

[ddlingo]

yes it is possible

<{POST_SNAPBACK}>

 

I'm sorry...I don't quite understand....Whatexactly is possible? Also, what steps would I need to take forward to gain the most out of this? Any meaningfull reply would be appreciated.

Edited April 12, 2005 by ddlingo

[Java Tony]

I have looked up my old corporation that I formed in 2000. I called and found out that it would only take $220 to reinstate the corpration.  I would have to find the old EIN or call somewhere to have it sent to me but is this really worth it?  Will I then be blessed with a 4 year old corp?  If so what else do I need to do to start reaping some of the benifits? This is a Georgia corp. BTW.

<{POST_SNAPBACK}>

 

yes it is possible

<{POST_SNAPBACK}>

 

if u had a corp in good standing, it would more than likely benefit you to reinstate it. check w/ the IRS to be sure your Fed Tax ID/EIN is still active. if not, reactivate it or get another. the age of the corp will help for the yrs in biz AND whether u had a DnB file (full file) and/or an EX file. I bet u have both. look up the EX file and see. it would be worth the $20 to find out the score. then be sure to update that file. the link to look up EX biz files is here in case u don't have it:

 

Lookup

 

update DnB file also. i'd open a biz cking account too. i found a phone was not needed. i have used my cel phone as the phn cntact, and have never been denied a cc, and the phone # on EX has not updated yet either. it is still the old phn that was disconn.

 

i did this with a corp i started in 1990. the exp file is 15yrs old and although it only had 1 TL, it was 15 yrs old and a score of 69. i was able to get numorous cc's in the old co. name that I COULD NOT get with my 2 yr old corp off the bat now. this is now my shelf corp to assist my newer corp. it should be worth it.

[HobbesIsReal]

I have been interested in this idea for a while now. I have all my paperwork ready to file for a Nevada Corp. I paid $299 to have it all prepared for me (still refundable for 3 more weeks if I change my mind) plus a couple hundred for filing fees that add up to around $500 and change.

 

Here is just one example I pulled up on Google that offers aged shelved corps:

 

Number of Shares/Value of shares Incorporated Price

75,000,000, $0.001 par value May 19, 2004 $950

 

One of my main goals is to establish credit as soon as possible as I am dealing in real estate. Is it worth the extra $400 to buy a corp that is 1 year old?

 

My current app that I have not submited yet only has 75,000 shares no par value.

 

It says that the Name change fee is included in the price. I assume I still have to apply for a Certificate of Good standing unless otherwise stated?

 

What other fees might be associated with a transaction like this that I am not aware about?

 

I am really serious about this. Even though I am not most knowledgable on purchasing a aged corp, I am great student! Any advice or insights would be GREATLY appreciated.

[TexasLady?]

Alright, now I'm curious.

 

I had a corporation registered in Delaware 1995. I'm now in TX - do I bring the DE to good standing and then transfer to TX? Or do I just use the DE info and move it to TX?