Starting a company using shelf corporations is indeed straightforward, but buying that company is undoubtedly complicated. The reason is that there are numerous chances to fall under the scams by the sellers or the companies selling you the shelf company.
It is pretty obvious that no industry is spared from the scams. So, do the shelf corporations. Here are a variety of scams that people often encounter while purchasing their aged company.
What kinds of scams might you encounter?
Well, to protect yourself from scams, it is essential to understand them. You could often come across the scams including, personal guarantor scams, established credit scams, secretary of state data harvesting scams and tax returns scams. Let's briefly discuss them one by one:
Personal guarantor scams-Here, the seller or the selling company offers you a stand-in personal guarantor who will use his credit scores to help you obtain unsecured financing from the lenders. It might lead you to think that having a personal guarantor to get loans is a great idea, and you end up paying more money for the shelf company you are buying. Later, you will get to know that there was no personal guarantor with the shelf company.
Established credit scams-Here, the scammer sells you a shelf company saying that it comes with the established credit lines and charge you more for the company. You got scammed because you believe that the company will supposedly come with access to the corporate credits right away. Later, you might know that this was a mere fraud, and your company doesn't have any established credit lines.
Secretary of state data harvesting scams- Here, the seller advertises the shelf company for a low price on a classified website. It made you think that the deal is excellent and you go for buying that company. A few months later, you might know the shelf company was never sold to you by the real incorporator of the company, and you are never its owner.
Tax returns scams- Here, the seller offers you the shelf company stating that it has tax returns and financial statements and charges you a higher price. Later you might know that the tax returns and financial statements are fake, and you were fooled.
What role does Wholesale Shelf Corporations play?
Wholesale Shelf Corporations reviews suggest that they potentially prevent you from any such scam because they are trustworthy and personal care for their customers. They help you select the shelf companies according to your requirements and potentially prevent all sorts of scams because they do not hide anything from their customers.
Shelf companies can give a kick start to your business and help you achieve your goals quickly. But, we suggest you be aware of all the scams you might encounter if the seller is not trustworthy.
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