Budget Corporate Renewals

Nevada Corporations
at Budget Prices

LEGAL NOTICE:
Information on this site is not intended as and shall not be construed to be LEGAL ADVICE.
When dealing with legal matters, you should always avail yourself of the services of a qualified member of the Bar Association.

 
Basics: Shell Corporations

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What Are Shell Corporations, or Corporate Shells?

(If you are looking for an aged corporate shell to buy or if you have an aged Nevada shelf corporation you want to sell, Budget Corporate Renewals acts as middleman to facilitate sales of aged Nevada shelf corporations at fair prices. Use the following link to go straight to information regarding pricing of seasoned (aged) corporate shells, aged Nevada "shelf" corporations.)

A corporate shell is a corporation that is completely formed and ready to proceed. It is called a "shell" simply because it has NO stockholders, directors or officers-YET. It is a shell with nothing (no life) within it. It has NO assets or liabilities. An aged shell corporation is often referred to as a "shelf" corporation, implying that nothing has been done with it; it has been formed and "put on the shelf".

It is simply like a brand-new, completed house with nothing and no one inside it. It is simply waiting for YOU to decide what and who you want to put in it, as well as when and how.

Previously formed corporation shells are ready to do business immediately. The purchase of an already-formed corporate shell is the fastest, simplest and most efficient method by which you can incorporate, become incorporated, or, literally, instantaneously have an already-formed corporation for immediate use. Further, if you get one of these new "shells" it comes with its birthing certificates and resident nanny (agent).

Budget Corporate Renewals and many other resident agents in the State of Nevada are in the practice of forming new corporation shells on a nearly continual basis.  Typically, at purchase, such a shell will be accompanied by "Written Consent" of the original Director named in the Articles of Incorporation, turning over the power to control the corporation to the purchasers of the shell.

When you set up with one of these shell corporations, your name is not listed on public records as the "incorporator" and First Director, which can be very key when it comes to privacy. Low-priced online incorporation services do NOT generally handle business this way, so the use of such a service will result in your name being on the public records with regard to the incorporation.

 

The Value of an Aged (Seasoned) Nevada Shell (Shelf) Corporation

An aged corporate shell-commonly referred to as a "shelf" corporation, an indication that it has not been used, only "put on the shelf"-increases in value over time. This is because there are those who can benefit greatly by the ability to instantly get into business and yet have the ability to say that the corporation has been in business for a while-even if the only business conducted has been the required annual filing of lists of officers with the Secretary of State.

As a rule of thumb, the value of an aged "shelf" corporation is almost invariably MORE THAN the amounts paid to keep it current. There may be a significant difference between "bid" and "ask" due to the small size of the market and patience in buying or selling is generally rewarded. If you are the holder of such an aged corporation with no real activity in its history and you want to sell it, you just might find that it has been a fair investment when you put it up for sale. The best way to sell such an entity is often by consignment, whereby the seller consents to pay a certain percentage of the sale price realized to the vendor-usually a resident agent with good contacts in the market place.  There is usually pretty strong demand for corporations in the 2-3 year age range because such entities are prime candidates for establishing good Paydex scores and obtaining credit from primary financial institutions.

Budget Corporate Renewals acts as middleman on many such transactions every year, matching up a party with an aged shelf corporation to sell-with a party who wants to buy a seasoned Nevada shelf corporation. The following table lays out typical buy and sell prices for aged Nevada shelf corporations.  THESE PRICES ARE TO BE CONSIDERED AS A GUIDELINE ONLY, PLEASE.

Aged Nevada Shelf Corporation (Shell Corporation) Pricing Guidelines

 

WITH

EIN

W/BANK

ACCOUNT

Age

BID

ASK

BID

ASK

1

$1500

$2000

$1770

$2270

2

$2000

$3000

$2540

$3540

3

$2500

$4000

$3310

$4810

4

$3000

$5000

$4080

$6080

5

$3500

$6000

$4850

$7350

6

$4000

$7000

$5620

$8620

7

$4500

$8000

$6390

$9890

8

$5000

$9000

$7160

$11160

9

$5500

$10000

$7930

$12430

10

$6000

$11000

$8700

$13700

Please Note:

  1. In determining pricing at a particular age, the assumption is that annual renewal fees have been paid one time for a one year-old; two times for a two year-old; etc.
  2. A "nearly three year-old" shelf corporation that has not paid its third-year renewal fees should be discounted by approximately $500 from the three-year price.
  3. Although the pricing in the table reflects a LINEAR projection of pricing, the greatest demand factor is for corporations in the 0-3 year age-range and prices for that age range will tend toward the upper end of the price parameters. There are relatively few buyers for whom 10 years of age means anything much more than 3 years of age, so pricing on the older corporations will tend toward the lower end of the price parameters AND it can often take a fairly long time to sell the older shelf corporations.
  4. Price "with bank account" assumes a bank account balance of $100.
  5. A patient buyer might be able to acquire a shelf corporation near the low end of the range and a patient seller might be able to obtain a sale price near the high end of the range.
  6. Most often a price is struck somewhere in the middle.
  7. This table is ONLY A GUIDELINE.
  8. We act on behalf of buyers AND sellers and we charge a 20% commission to the seller.
  9. OTHER FACTORS can influence pricing, such as: whether or not the corporation has filed non-activity tax returns; whether or not the corporation has always been maintained in good standing; whether or not the corporation has a Paydex Score and/or a D&B registration number (factors affecting creditworthiness).

Investing in Nevada Shelf Corporations

Some people acquire a number of newborn corporations specifically as an investment, in order to capture the appreciation in value over time. If this sounds like something you might like to do, here are several steps you can take to maximize the value:

  • Obtain an Employer Identification Number;
  • Use contract officers so there is no link to you personally;
  • Open a (preferably no-fee or low-fee) non-interest-bearing bank account for the corporation;
  • File "zero income" (non-activity) tax returns every year;
  • DO NOT TRANSACT ANY BUSINESS WITH THE CORPORATION.

A shelf corporation maintained in this manner typically carries a premium of $1,000 PER YEAR OF AGE, in addition to the initial costs of setting it up. As the maintenance costs are typically (at least, through our resident agency) only around $500 per year, everything included, you just might find investing in shelf corporations to be a very lucrative little business. While there can be no guarantees, a typical "shelf corp farmer" might experience returns of 50% per annum, in our experience.

 

Please contact us with questions or comments:
Budget Corporate Renewals, Inc.
Phone: (702) 870-5351; FAX: (702) 880-7044
PO BOX 26930 - LAS VEGAS, NV 89126
LEGAL NOTICE: Information on this site is not intended as and shall not be construed to be LEGAL ADVICE.
When dealing with legal matters, you should always avail yourself of the services of a qualified member of the Bar Association.
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