Shelf companies, and shelf company LLCs have tremendous benefits for an entrepreneur, especially with some careful planning. The greatest benefits being speed and age that you gain when you acquire a shelf entity. The speed factor is straight forward. The LLC already exists. You don't have to wait for the Texas Secretary of State's Corporation Section to process your LLC documents and get them returned to you. These waits can be significant for an entrepreneur eager to bid on a time-sensitive contract. Many busy professionals setting up their own LLCs don't know this, and get surprised when their LLC filings are delayed and returned by the State for any number of reasons.
Contrast that with a shelf company LLC. Because it is already prepared, filed, and active, there is no wait time for an entrepreneur. Our firm prepares the paperwork and gets the shelf company in your hands within one business day. From that juncture, you can rest easy knowing you can close on that important business deal without having to worry about whether or not your company will be ready to conduct business, contract with vendors & suppliers, and establish a commercial checking account and other business banking relationships.
Moreover, the fact that our Texas LLCs are "aged" is another huge benefit. One of the many benefits of purchasing an aged LLC is tax-based. By purchasing a pre-existing entity, you've got the benefit of an earlier starting date for taxes than you may otherwise. It is encouraged that you discuss this matter with your tax professional for more detailed insight.
Business and banking relationships are more easily established with an older previously registered company, rather than with a newly formed brand new company. There is a tremendous contrast between a company opened last week, when compared to one incorporated/registered two or three years ago. In the corporate world, the older a company is the more confident people will feel in doing business with you.
Vendors, distributors, manufacturers, and local, state, and federal government agencies often times will require a company to have been in business for a certain period of time; typically two-years, to qualify for bidding on contracts. The age of a company is often a major factor in corporate banking relationships, business contracts such as leases, and an important criteria in the awarding of large government projects or tenders for the supplying of goods and/or services.
Establishing corporate credit is easier with age. Most large companies will simply refuse to give credit to a newly formed company. Obtaining bank loans, leases for office/warehouse space, credit card merchant accounts, and other credit facilities is easier when you can show your business is several years old. The age of your company is what matters most. We recommend to our clients that it serves BEST to have a background in the industry you are wanting to establish a shelf company within. For example, if you've been in the roofing business for the past 2 or 3 years, then purchasing a 2 or 3 year old shelf company to run your roofing business under would coincide with the age of the entity you chose to purchase.
Most credit card companies require that a business has been in existence for a least two years before they will extend credit. I will be blogging in the near future more on this matter. I intend to compile a complete active list of companies willing to extend business credit to companies that have been opened in the 2 to 3 year range.
The Texas LLCs offered by Westwood Associates LLC are dormant inactive companies that were incorporated/registered in the previous years but were never active. These companies are "clean" meaning they have never traded nor engaged in any business transaction. They are free from defects, liens, judgments, or any other liabilities. Our shelf companies are guaranteed to be clear of any business debt or liabilities because we have maintained control over the companies since the day we originally formed them with the State of Texas.
In addition, our Texas LLCs were registered and maintained by us; filing all necessary annual reports with the State. Since the date of formation, the complete files have always been in our custody. With the purchase of any of our shelf companies, we issue you with a Letter of Indemnity for your additional comfort to cover against potential liabilities.
For more information, please visit our website: http://www.
You can also reach me via email at allentmay@gmail.com or amay@westwoodassociatesllc.com
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