A REALISTIC LOOK AT
SHELF COMPANY TO BUILD CORPORATE CREDIT AND OBTAIN FINANCING FOR SMALL
This is a basic
step-by-step plan on how to build corporate credit with an aged shelf
company that's at least three years old.
The aged shelf company.
An aged shelf company can be a corporation or LLC.
What age is required
of the shelf company to build corporate credit and obtain financing?
An aged shelf company,
at least three years of age, is best. Any shelf company that's at
least three years of age will do the job. A shelf company that's
at least three years of age is enough. A shelf company that's six
years old will not attract more financing than a shelf company that's
three years old. As such, there's no need to acquire a shelf
company that's more than three years old if the seller will charge more.
Do I need a shelf
company with an Employed Identification Number(EIN)?
No. A shelf
company with an EIN is a liability. The EIN is the tax ID number
used to identify the company for tax purposes. A shelf company
with an EIN may owe unseen taxes, and may be subject to audit due to
improperly filed tax returns. You're better off with a shelf
company with no EIN. The EIN is free from the IRS.
Do I need an EIN
No. An EIN is
a random number. No one can tell the age of the EIN by the
number. You're better off applying for the EIN after you
acquire the aged shelf company.
Am I better off with
an aged shelf corporation or an aged shelf LLC?
utility companies, and governments prefer to do business with a
corporation than an LLC. This is because their employees are
familiar with a corporation. Many of those same employees don't
know what an LLC is. Further, the LLC offers more asset protection
for the owners. Banks don't want you to be protected from claims
if they are to loan you money. They prefer to see you exposed.
For these reasons, LLC's are better to protect your assets.
Corporations are better if you're to apply for corporate credit.
May I change the
name of the shelf company after I buy it?
Changing the name of
the shelf company may lead to the resetting of the respected age, in
terms of the bank. You're better off keeping the original name of
the company and filing a Doing-Business-As (DBA)/Fictitious Name filing,
in the available name you would like to do business.
How much corporate
credit am I able to obtain with an aged shelf company?
We haven't seen anyone
obtain more than $100,000 in corporate credit. Our competitors
claim you're able to get much more; but this is unrealistic. We
cap the potential at $100,000. The Small Business Administration
offers up to two microloan programs for small businesses, up to $25,000
each. In addition, there are credit cards and vendors that extend
credit for equipment leasing, and supplies.
It all starts with
small lines of credit with HomeDepot, Lowes, Staples, OfficeMax and your
suppliers. Obtain those small lines of credit and pay them off
early. Once your business demonstrates a competency in building a
positive credit profile by paying off obligations early, then you're
able to apply for business loans in a few months.
How do I get a DUNS
number and obtain a Paydex score?
When you apply for the
initial small lines of credit with Staples, OfficeMax and suppliers,
they will report your lines of credit to Dun and Bradstreet (DNB).
DNB will gladly assign your company a DUNS number and your payment
history makes up the Paydex score. If your company pays off
obligations early, then you're aiming for a Paydex score of 80 across at
least four accounts.
Must I pay for a
No. A DUNS number
is assigned to your business automatically when you apply for a line of