Are Shelf Corporations Legal?

To understand the legitimacy of shelf corporations it is important to first define what they are, and the circumstances under which they are formed. Also referred to as aged companies or ready-made corporations, shelf corporations are duly registered business entities that are formed and kept on the shelves to “season” before they are sold to new owners. They don’t engage in real business during the aging process unless a deliberate effort is made to build the company’s operating history.

So, Are Shelf Corporations Legal?

Shelf Corporations are legally registered businesses that are kept on shelves to age. They have all the formal documents of registrations making them legitimate ventures operating under the corporate laws of the states they ail from. There’s nothing illegal about purchasing a company that has been in existence long before they were purchased, the same way one can acquire an already operational business entity.

What's the Connection Between Shelf Corporations and Shell Companies?

Shelf corporations have for the longest time been mistaken for shell companies, no thanks to their close pronunciation and probably lack of clear differentiation between the two terms. While Shell Corporations don’t have the best reputation in the land, Shelf Corporation doesn’t have anything to do with that, but unfortunately, they have been forced to suffer a similar fate.

Also, consider that shell corporation is not necessarily illegal until they are used for illegitimate purposes like evading the taxman or hiding a company’s operations from law enforcement or public eyes. Shelf corporations don’t own any physical assets, although they transact on behalf of other functional companies without revealing the identities of the owners. These make them ideal vessels for carrying out illegal financial practices like money laundering and tax evasion, but still, not all shell companies carry out illegal financial practices. It is noteworthy to mention that shelf corporations can be converted to shell companies, but shell companies can never become shelf corporations. It is, however, impossible on the part of the vendors to control what a buyer wants to do with their shelf corporation.

How Can Shelf Corporations Help You?

Shelf corporations can help you save the time it takes to incorporate a business among a couple of other benefits like earning you invaluable time-in-business, and credible corporate credit that allows you to borrow from a wide range of creditors. However, with tons of players in the shelf corporation space, it is essential to pick a vendor that delivers on their promises. One consistent brand in the industry is Wholesale Shelf Corporations.

Another related resource - https://medium.com/@ron247anderson/bootstrapping-with-wholesale-shelf-corporations-69efd89cba76