Acquiring Seasoned Corp / LLC

[imirza]

Can anyone please give me some information on acquiring a seasoned/shelf corp or LLC. I am looking for a reputable source that can help me acquire a shelf corp.

Another question I had was whether it is legal to acquire a shelf corp and get lines of credit for it ? Someone I spoke to told me it is illegal. I am not sure what to make of it. There are a lot of people selling shelf corps with lines of credit online. I am not willing to part with $5-10k unless I know I am getting it from a reputable source.

Has anyone here acquired a shelf corp or know someone who has ?

 

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[Jill]

I haven't purchased one. But I'd also be interested in hearing from someone who has.

From what research I've done, they are not illegal.

But you need to do some research to see if
1) your prospecitive lender cares about the age of your corporation?
2) the shelf corp already has lines of credit established?
3) it has ever been used! Make sure it has never been used for anything illegal that could come back to bite you.

Other than those caveats, I'll be anxious to hear others' input, experience with them.

 

[Edge]

I'd do a lot more digging on this if I were you. I was looking into this about a year ago, but decided against it. I was told by a fellow investor that this could be viewed as fraud.

Might be a different story if you buy one for the existing lines, but I was thinking about buying one to use to apply for new lines.

 

[Jill]

Hmmm. I'll do some more research. But it wouldn't be fraud if you purchased another corporation, and used their credibility in the marketplace for [whatever - branding, relationships, accounts, etc]. Companies do it all the time for all kinds of reasons.

I think it would only be fraud if you lied about it. "I built this corporation from the ground up, and have owned it for 10 years now."

Interesting idea. Hoping someone else will chime in.

 

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[andviv]

I am also interested. I haven't got too much to add, although I already started some contacts to see who knows about this.

 

[reipro]

In most cases it does not matter how long the corp or LLC has been in existance. No bank is going to give a loan to a small corp or LLC with out a personal gurantee. With that being said a major corp or public compnay can get loans with out personal gurantess.

 

[imirza]

Yes. You still have to give a personal guarantee to get lines of credit. But the older and more established your corp is, the more credit you can get. In some cases if your corp is rated by Dun and Bradstreet and has its own identfication number or something of that sort, the corp can apply for credit in its own name without you having to guarantee it. Thats what I am aiming to accomplish. That way I can buy real estate in the name of the corp and buy as many as I want without restrictions.An individual is limited to 10 mortgages on his credit report. A corp has no restrictions on the number of mortgages on its credit.

 

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[Edge]

Have any of you had any luck with this or are any of you still pursuing this?

 

[GoldenEggs]

We purchased a corporation but I think it was only seasoned for a year. We bought it through our current attorney. We are still developing this business so we have not used it for lines of credit.