How to Make a Start-up Look Like a
Seasoned Business

(And Note: Anything Less than 2 Years Old is a “Start-up”)

Buy a Shelf Corporation

 Banks are Down on Start-ups

Starting a business takes money—often lots of money.  So, naturally when starting a new business, most entrepreneurs go to the bank.  After all, you have a great idea, that’s bound succeed as long as you can get it off the ground—equipment, employees, marketing dollars, inventory, physical space.

What a great investment.  After all you’re using their money to make money!  You’d think the banks would jump at it.  Well, you’d thing wrong.

For banks, the glass is always half empty.  They look at the stats that most new businesses fail (of course, you’re thinking—that’s because they wouldn’t lend them the money).  However, banks follow the golden rule: “He who has the gold, makes the rules.”   So trying to argue with a banker is about as futile as Don Quixote tilting at windmills.

So what can you do?

How to Play By the Rules

The answer: find a way to play by the rules.   And that answer is the “Shelf Corporation”.  These are entities that have been legally registered with one of the fifty states, and then not used or abandoned by their owners.  In fact, some entrepreneurs make a business of registering corporations and then holding them to sell.

Currently most lenders define a start-up as any company who has been in existence for less than 2 years.   So, if you’re a start-up by the bank’s definition, and you want to “age” quickly, purchase a shelf corporation.

Making the Right Choices

Now, you do need to be careful.  You want to make sure the corporation is “clean”—no liens, judgments, outstanding lawsuits, negative reputation, etc.  Easiest way to insure this, is to purchase a corporation that’s never been used.
Second, you’ll need to register the corporation in the state in which you reside as a “foreign corporation”—that’s what companies registered in another state are called, even in the good old US of A.

Now the cool thing is, that you can use your business financials in the name of this company.  And if you really want to look good, sign up with Dun & Bradstreet, and start building a paydex score.

Is It Worth It?

Oh, one more thing—the cost.  First, ask yourself what is it worth to you to get funding for your start-up or young company—possibly hundreds of thousands of dollars?  Is spending a couple of thousand dollars to borrow hundreds and make even more worth it?  Of course.

Now, you could go on google and find companies selling these.  The going price for a 2 year old company is about $2800.  For anyone with a budding business, that’s a deal.  However, you can do better.

As a special service to subscribers of the BusinessCapitalConnection.com, we have a small supply of 2 year plus, unused shelf corporations for $1995.  That’s a savings of at least $800.00!

So Let’s get Started.  Just Click the box below, fill out the form and we will get you a 2 year shelf corporation, and instruct you the instructions on how to set it up for your business.