Nevada Shelf Corporation - Raiding Old Mother Hubbard's Empty Cupboards

November 6, 2004
By Katherine Curtis

Perhaps if Mother Hubbard understood the aging value of her empty bottle, resting unused in her bare cupboards, she could have sold them on the market for profit, much like a Nevada shelf corporation. When a business establishes a corporation or LLC in the state of Nevada and wait ages to use it's standing, the business has the option of reselling its name and standing to any buyer under Nevada state laws.

As long as the corporation is within good standing and holds no liabilities, the corporation may be sold as a shelf corporation.

Aging Like a Fine Wine (Less The Content).
Often a shelf corporation is referred to as an aging corporation. Similar to holding onto a fine wine's empty bottle and label, the label and clean bottle hold value. Other business holders desire this empty bottle for several reasons. From attaining a good standing to acquiring a clean history, buyers gobble up these Nevada shelf corporations to either expand their business operations or attain more credibility.

Attaining Good Favor.
The advantages of purchasing an existing corporation within the Sagebrush State are numerous. Shelf corporations contain a history that includes just the date of incorporation. To the outside world, the date of incorporation may attract more business since the corporation looks stable.

Liability-free.
Good shelf corporations have no existing liabilities. A buyer who would like to expand his business under another title often purchases these aging corporations and files for a new title, which retains the original date of incorporation. The buyer then markets his new business or brand under the new name, less any on-hand liabilities.

Adding A Pinch Here and A Drop There.
Along with the above features, shelf corporations also retain the original federal tax ID number, any possible record books, article of incorporation, a charter from the Secretary of State, and any stock certificates. Since the legwork is already completed, the new owner can merely pick up the corporation and operate it under its own structure.