| services that will surely be beneficial especially for first-time business owners. Aside from shelf corporations Securing your business accounts with Doheny Capital Management
Shelf corporations are called such because these are corporations ready to make transactions as a legal entity but nothing has been done with them yet. They were created and were put on a “shelf” to age in the same way that wine is produced.
Entrepreneurship is not an easy task. The very process of setting up a new business is very tedious as it requires the creation of business plans, market and feasibility studies, not to mention the financial difficulties you might experience in your first year of operation. This is perhaps the very reason why most people prefer to buy aged corporations.
Other reasons for buying shelf corporations have something to do with the legal rights that these aged corporations are able to take advantage of:
Ø Shelf corporations gain the opportunity to bid on contracts, especially in jurisdictions that require companies to be in business for a certain length of time. Aside from this, it is also easier to get a lease when you have a company history and established existence.
Ø Shelf corporations can boost investor and consumer independence as attributed to the length of time it has been in business. We all know that most people are willing to invest in corporations which have been around for sometime due to the perceived stability of these businesses.
Ø Because shelf corporations give the appearance of longevity, it is easier for owners to acquire financing for their businesses. Aside from this, more options are available to established corporations such as unsecured loans and lower interest rates for greater loan amount.
It is a fact that most businesses have 80% chance of failing in their first year, and shelf corporations allows owners to beat the odds. It is also true that some corporations are “shelved’ due to bad business history. As such, you will need to do your research before you decide to buy since you might be acquiring a liability.
How do you make sure that you are buying a business and not a lemon? Well, first you need to do a background check on the corporations you are interested with. Check on tax returns, bank statements and credit profiles and make sure that you are starting from a clean slate. The process is actually a long one, and most people prefer to deal with companies such as Doheny Capital Management so as to be sure of the positive outcome of their decision to acquire shelf corporations.
Doheny Capital Management offers a full range of, we can also help you manage your business through bookkeeping and accounting services; the computation of individual and business taxes for submission to IRS; build alternative credit and funding solutions which you can use as investment capital; credit enhancement services especially when you need to get more loans to expand your business; and lastly, but most important of all, our advisers are more than qualified to give you advise on how to protect your assets.
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