Keep this in mind when buying a new or aging corporation or LLC, you are buying a corporate asset that begins or continues to appreciate on the day you go into business. If you ever consider closing or selling your business, determine the value of the old corporation in the sale price. Most homeowners are completely oblivious to corporate value that can be sold later, provided it has been properly maintained. There are many buyers looking for good old corporations.

What do you get when you buy an Aged Shelf Corporation?

To create a corporation, articles of incorporation must be filed with the Secretary of State or other appropriate state agency, bylaws, and organizational resolutions. A corporation will need to apply for a tax identification number with the IRS.

New or old corporations, LLCs include:

1. Articles of Incorporation

2. Bylaws

3. Organizational Resolutions

4. IRS form or phone number to submit your business EIN.

5. Custom Stock Certificates

6. Corporate seal and seal

7. Corporate Business Forms. This is not always the case.

8. Corporate folder – This is not always the case.

A. In most cases, a nice corporate folder is included to keep your corporate records and documents organized.

What is the cost of buying a new corporation vs. an old man?

This really depends on the age of the corporation and the assets attached to the corporation. If you are starting a new business with all of the above items, your cost should be less than $1000.00. Maintaining your business annually will cost you approximately $1000.00. Check with your state and local agencies for exact rates.

To get funding and financing for a new business, you’ll need to prepare your business from the ground up to build a credit-ready business. This takes time…at least 6-9 months for a new business to start building good solid reporting lines of business. Most banks or lenders will decline your credit until you have a minimum of 2 years of credit history and report good business lines of credit with vendors.

What is the cost of buying an aging corporation?

To maintain corporations, LLCs in good standing with the Secretary of State and local agency owners spend an average of approximately $1,000.00 per year to maintain plus the owners’ time creating the added value for the corporation. Add 20 to 30% or more depending on other services.

When calculating a sales price:

1. Initial cost of establishment, then multiply the age of the corporation or LLC X years = Shelf Company price.

2. Add additional charges for products or services included with the old shelf corp.

The value increases based on the work the owners have done to build the corporation to maintain track record and build credit readiness for the buyer.

Aged Corporations Basic Annual Cost Breakdown Example:

Example The owner operates in California using a Delaware Corp.

– Annual Owners Meter Fill Fee $150 – 250

– Annual Fee Delaware Registered Agent Fee $60.00

– Annual fee for California Registered Agent. $60.00

– The annual franchise fee for Delaware is based on the price of one share issued.

– If you file as a foreign corporation to do business in CA.

– Requires Declaration of information to present 25.00 per year presented.

– The minimum annual franchise tax annual report is $800.00

Additional Aged Corp charges that add to the value of the purchase price.

– The age of the corporation is the number one factor.

– Location of Corporation: Delaware is the number 1 choice for business owners, with Nevada and Wyoming number 2, Aged Corp.

– Reviewing accounts

– Commercial Credit Lines established for the company

– Cash Trade lines for the company

– Dun & Bradtreet Duns number 75 or higher with at least 4 business lines

– Additional credit reporting agencies.

What are the benefits of buying an aging corporation?

– Established history for your business.

– They want to improve the image of their corporations with age.

– You want to build corporate credit, as it may become easier with age.

– You want to encourage companies to do business with you. Some companies are more willing to do business with an established company than an established company. a younger company.

– You want to bid on a contract that requires your corporation to be established for a certain period of time.

– I want to get a bank loan. It may be easier if you can show that you have a history of onboarding.

– You would like to obtain corporate credit cards and leases.

Make sure the service provider helps you with the additional products and services you need, otherwise you may be on your own.

Have a great day and good luck with your new company or old Corporation. Call if you need help.

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