Are Shelf Corporations Legal

A shelf corporation doesn t engage in any real business but during the aging period some efforts may be undertaken to establish a credit history file basic tax returns open a business bank account and other simple actions to demonstrate some activity.

Are shelf corporations legal.

They are frequently used for holding personal or business assets. If you buy a shelf corporation with a seasoned credit profile and use that credit to secure a loan you wouldn t have been able to qualify for normally you may be crossing the line. Was established on october 19 1992 and published a bi annual circular that was sent out to its fan club. It all depends upon how a shelf llc is created and how it is used.

Wild west arts club inc. They function as transactional vehicles for a variety of firms and for a myriad of. Shell corporation law and legal definition a shell corporation is a company which serves as a vehicle for business transactions without having any significant assets or operations. Shell corporations are legitimate legal entities that do not possess actual assets or run business operations.

A person forms a company usually in a state like montana or wyoming where the filing fees are inexpensive and puts it on a shelf. Shelf corporations are legal and do have legitimate purposes. A shelf corporation is a company that was created years ago for the sole purpose of being sold in the future simply for the value of its age. It was created and left with no activity metaphorically put on the shelf to age.

The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one. Shell corporations are not illegal and they may have legitimate business purposes. They do nothing with the corporation other than file the annual reports and cover the annual fees. Looking for aged or shelf corporation.

Whether or not a shelf corporation is ultimately considered legal or illegal comes down to two important factors.