| First of all, let's tackle what an LLC is. In the legal sense | | | | corporation. This is also known as an aged corporation. |
| in just about all of the United States, the LLC is a kind | | | | It is called this because it has had no activity. It was |
| of business company that offers limited liability to its | | | | formulated and, as it were, put on the shelf to mature. |
| owners. It is mistakenly called a limited liability | | | | This corporation may then be sold to someone who |
| corporation by many people instead of the proper | | | | would rather have an aged corporation and simply not |
| term which is a limited liability company. | | | | a brand new one. A business entity that has been |
| It is a business that has a hybrid nature and it has the | | | | created by a means other than incorporation is simply |
| characteristics of not only a corporation but a | | | | known as a shelf company. |
| partnership as well. This provides more flexibility for the | | | | What are some of the reasons that a person would |
| owners as they only have a limited liability for the | | | | want to buy a shelf corporation? Some of them may |
| debts and the actions of the company. The LLC is | | | | include the following: |
| better suited for the smaller company that only has a | | | | - To act as a time saver. It takes time to create a |
| single owner. The LLC is rather a new type of | | | | new corporation. |
| business entity here in the United States. | | | | - There would be the chance to bid on contracts. |
| Adopted in Wyoming in 1977, now LLCs are able to be | | | | Some places may require a certain time limit for the |
| created in every state of the union. The LLC is seen | | | | company to be in business before it can do this. |
| as a way to help the small business gain the benefits | | | | - It may appear that the business has been around for |
| that are enjoyed by large corporations; it still allows | | | | a long time which may add to investor or consumer |
| them to keep a small business model of ownership. | | | | confidence. |
| What exactly does limited liability mean for those of us | | | | - It may be easier to acquire investment capital. |
| who are not savvy in legal terminology? Once the | | | | - It may be easier to obtain corporate credit. |
| small business decides to become an LLC, the owner | | | | There are a number of websites on the Internet that |
| of the business is much less responsible for | | | | make it their business to produce and sell shelf |
| prosecution and other debt issues which may plague | | | | corporations. This will assure that the new buyer can |
| the business. If bankruptcy has to be declared, the | | | | have a corporation that has a long history while at the |
| business owner can rest assured that his or her | | | | same time being able to have entire control over |
| personal finances will not be caught up in the problems | | | | setting up the corporation's shareholder profile and its |
| of the business. | | | | board of directors. |
| Now on to the next subject which is a shelf | | | | |