Need advice on aged corp offer

[alexlev]

I've been offered an opportunity to purchase a 12 year old Nevada corp for about $4,500. The discussion started at $8,000, but I've been able to negotiate it down. The corp has never conducted any business, and the resident agent will provide a letter confirming that it is 100% free and clear. It does have an EIN.

 

Is there anything in particular that I should be on the lookout for?

Anything I should ask about?

 

Any views, suggestions, advice, etc. would be really helpfull.

 

Thanks all.

[ceowens]

I've been offered an opportunity to purchase a 12 year old Nevada corp for about $4,500. The discussion started at $8,000, but I've been able to negotiate it down. The corp has never conducted any business, and the resident agent will provide a letter confirming that it is 100% free and clear. It does have an EIN.

 

Is there anything in particular that I should be on the lookout for?

Anything I should ask about?

 

Any views, suggestions, advice, etc. would be really helpfull.

 

Thanks all.

 

 

Well, I don't have any "views. suggestions or advice", :wink: but I will bump your thread back to the top for you. Someone on here, I can't remember who, bought a shelf corp. They would have your answers. I looked into it, but didnt have the money at the time. Hang on and someone will come along and answer. Good luck.

[loanuniverse]

The purpose of incorporating a business is to insulate other assets from the activities of that business. I don’t think that the purpose of incorporating should be to obtain credit. Call me crazy, but I think that credit is just a tool that will let you expand the operations of the company, and it should not be a goal in itself.

 

My take is that you will spend a substantial amount on top of what it would cost you to just incorporate in your own state for no substantial benefit. You can certainly do a lot with the extra $4,000 to build credit that would be more productive.

[alexlev]

Thanks for your comments. My thinking and in fact my argument to the seller has been that there's really no benefit to purchasing a 12 year old corp versus a 3 or 4 year old corp. As far as I understand it, 2 years is really the magic number. In fact I had pretty much decided that I was just going to form a new LLC in my home state (NY) and go from there. But then I heard back from this person and they started coming down in price. Now I'm not really sure what to do. I'm not sure what would be the better move for my real estate business.

[BizCredit]

it's worth it for the right person..

 

but for you it's probably not worth more then $1000

[breeze]

Nevada recently changed their laws, and a lot of the companies are stuck with NV corps that they paid a lot for to begin with, I think.

 

It's probably worth 1K or so to get a corp that's existed more the 3 years. That seems to be the cutoff date, however, if you're looking for some huge unsecured LOC with no PG, it won't work. They'll want all the docs, and they'll see when you bought it.

 

Also, don't take anyone's word for it that a corp hasn't done any business, find out for yourself. Kind of like title insurance.

[loanuniverse]

however, if you're looking for some huge unsecured LOC with no PG, it won't work. They'll want all the docs, and they'll see when you bought it.

 

Ohhh so that is the plan

 

Who do you guys go to get these LOCs without PGs?

 

I have done hundreds of lines of credit for businesses and the first thing that would raise a flag would be.... why am I looking at a Nevada corporation for Joe's company, when I am in {insert your state here}?

 

Most LOCs under a million bucks, about 99%, will be for companies incorporated in your state. Once you go really big, you start seeing foreign ones, but most are Delaware.

 

Also who gives LOCs without the owner's PG?

[See That]

Nevada 12 Yr. Aged Corporation for $4,500? POUNCE! True if someone looks into the the corp they will see that you just became the officer of it because A new list of officers is filed every year(at least in theory) But remember Officers is not Ownership!! You could have owned 100% of the stock all 12 years for all anyone knows. Officers mean Nothing! Change of structure, new address, new ownership YES But Officers? NO! and since Nevada doesnt have any requirements to list stockholders there is NO WAY someone could argue that you just bought it! Some people think its bad if the company has went into default or even revoked status but the truth is thats even better! Sounds crazy but true! Nevada's law says that when you reinstate or pay current a company the company shall return back to the date of first delinquancy as iff it were never revoked or late at all! Allowing you to be the officer for all thaat time! Bad? NO Expensive? YES

 

Its sort of true that 2 years is the magic number. Two years is what it takes to bid on a government contract and usually the time that someone will allow a Good company with good officers to sign with no PG. But two years is the MINIMUM, Three is more like it and the Longer the better!

 

Many companies Incorporate outside of their state and only small lenders care about this. ALOT of companies incorporated in Nevada hoping to save on state taxes! The truth of the tax matter is you pay taxes on income WHERE YOU MAKE IT! So even if you have a NEvada Corporation if you make your money in say...California California wants their cut!! So its common that people incorporate in Nevada for many reasons and that alone will not help or hurt you with lenders. What will Help Is TIME and Financials! Follow this up with an officer with a 680 credit score or better and you have corporate Gold!! In Many cases with no PG!

 

All that being said I would take my new 12 year nevada corporation and re domicile it in Wyoming where the fee's are low! Nevada has gotten greedy about their fee's and if you have no plans to sell it as an aged corporation in the future take it to Wyoming they will let you keep the original date!

 

It all comes down to what you want to buy with it and the FINANCIALS you present when appliing. You can do "Consolidated" finanicals but you would have to go back and pay the taxes on those financials to make it work legally.

 

 

Good Luck on a GREAT Deal!!

[Rick_MD]

I'm guessing you didn't look at the dates on the posts prior to yours?

[analoggirlnyc]

I'm guessing you didn't look at the dates on the posts prior to yours?

 

 

I must admit I didn't until you mentioned it. I was like wow a lot of info in this topic.