When you are new to the Buy Aged Corporations, you may end up being duped. Some people confuse shelf companies and a shell company. The two are very different since they do not work in the same way. If you cannot differentiate them, then continue reading. Here are the differences between these two companies.

The shell company is established to hold money for another business or individual. It is a limited liability company that does not have active business activities. The shell company is an offshore corporation.

Such companies can be used in hiding business ownership from state tax bodies, IRS, the public and law enforcement. They can also be used to evade taxes. Most of the shell companies are used to commit financial fraud such as money laundering, false invoicing or credit card fraud.

There are shell corporations that are used to protect trade secrets from competitors. There are also public figures that use shell companies to make it hard for the public to find their homes. However, it is not legitimate to use shell companies to evade tax obligations.

A shelf corporation is established to be sold later. Shelf corporations are usually sold off after it has achieved a good business credit rating. A shelf company is also known as an aged corporation or shelf company. Once it has been formed, it is put on the shelf. It ages for several years. The company does not do any kind of business. It also does not have any real assets. These companies mostly come with an employer identification number (EIN).

You can use a shelf company for bidding on government contracts, establish business history, enhance your company’s image, encourage vendors to work with you, build corporate credit and to obtain corporate credit. The cost of the shelf company is determined by the age of the company and the company selling it. To get value for your established business, make sure you go for a clean aged shelf company.

If you did not know the difference between a shell and a shelf corporation then you should remember it is only a shelf corporation that you need to build your credit line and not the shell business. When in the market in search of the shelf company take your time so that you do not meet with fraudsters who sell the shell companies.