COLORADOSHELF
COMPANIES TO BUILD
BUSINESS CREDIT

484-599-1070
How To Basics

THE AGE OF THE COMPANY IS THE BASELINE FOR WHAT HAPPENS NEXT.

What’s better about the Colorado aged corporations?

Colorado doesn’t ask for the names of the corporate officers in the annual report. This is good news for anyone acquiring an aged shelf company from Colorado. After you acquire the Colorado company, we’ll update the public record with the Director and President’s name(s), and the new business address. Then you’ll be considered the first and original owner of the company. Why? Because the corporate officers weren’t disclosed in the past. Colorado doesn’t ask for the owners of the company, or the names of the Director or Officers as part of the annual report. After you pay for the company, we update the public record to empower your business credit profile through transparency and clarity.
There are few other states that offer this advantage. New Mexico LLC’s are as effective as Colorado corporations in building business credit.

What are the stages of building business credit?

  1. Net30 accounts with Vendors
  2.  Fleet Lines of Credit
  3. Business Credit Cards
  4. Business Revolving Lines of Credit
  5. Bank Loans
Jumping to the bank loan without laying down the foundation will backfire. Before you apply for bank loans, you must build business credit with Net30 accounts/vendors, then build Fleet Lines of Credit, build business credit cards, and business revolving lines of credit. The bank loan is last. In all these stages, the age of the company is a significant factor for a business. Aged companies possess more lending options than new ones.

How is your company perceived by lenders, potential customers, commercial leasing, and equipment leasing providers? Who is looking at your bid for that project and how is your company age perceived?

Make your company look stable through age. New companies look unstable, flimsy, and fly-by-night. On the other hand, if your customers know you and of your abilities, then the age of the company may not matter in customer relations. It’s possible that the only benefit is increased access to funding in certain situations.

How does the age of the company impact how your company is perceived? How does it impact your marketing?

Customers prefer to do business with an older company rather than a new company.

How do you overcome the objection that the company is only one month old?

The company’s age is an attribute that impacts every facet and direction of your business, especially in terms of marketing, customer relations, and building rapport.
The company age problem is easily resolved by acquiring a clean aged shelf company.

Why Colorado?

The Colorado corporations are on par with the performance of corporations from Montana and New Mexico in terms of building business credit. Expect the same superior performance. Colorado doesn’t ask for the owners of the company upon filing the entity or in filing the annual report. This means that the shift of ownership isn’t detected when you acquire the company. This works in your favor because you’re considered the first and original owner of the company.

Can you file a Colorado aged shelf company into another state?

Yes. It’s your right to file the Colorado shelf company into any other state. This is done at any time. A company in one state has the right to file itself into any other state.

If the Colorado shelf company is filed into another state, does that impact the age of the company?

It’s normal and customary from a company to also file into other states to do business. Every storefront retailer and restaurant had to do this. Think of Red Lobster, BestBuy, Staples and ChickFilA. The age of the company doesn’t change upon filing into another state. It’s true that the company will carry two dates: the original date of incorporation and the date the company files into another state. This doesn’t impact the age of the company because the incorporation date remains the same. There will be a second date of when the Colorado company expands into another state. That’s normal and doesn’t impact the incorporation date.

What about the public record? How is it shown that I, as the buyer, control the company?

We update the public record with new officers and the new business address. This is done after you acquire the company. We handle the public record updates. We also hire a third party registered agent. You’re buying the company from us and using another registered agent. You’ll be the primary contact and we resign after the hand-off to you. Renewal of registered agent services is handled through your new registered agent that we paid for.
How long will my Colorado registered agent serve? We prepay the Colorado registered agent for one year. You’ll receive a renewal notice from them in the following year.

How often are the reports filed with the Colorado Secretary of State to maintain the Colorado corporation?

Annual reports are $10.

How do I foreign file/foreign qualify the Colorado company into my state?

Each state provides their form to file as a foreign corporation, or “foreign qualify,” the company into their state. Do a search for “foreign qualify corporation California pdf,” if you’re to operate the company into California. Each state has their own form to foreign qualify a company into that state.

What is the difference between a domestic company and foreign company?

A Colorado company is domestic to Colorado. Any company from all other states are foreign to Colorado. In California, any California company is domestic to California. A Colorado company is foreign to California. Therefore, a Colorado company must “foreign qualify” or “file as a foreign entity” into California. Simply, any company outside your state is considered a foreign entity. This is different than an offshore company.

What’s also important to lenders?

Lenders seek to validate that you have the authority to apply for business credit. This is verified through public records. Therefore, we are careful to accurately update the public record of the company to reflect you as the Director or Officer of the company. Each Colorado corporation has a Director, President, Treasurer and Secretary. One person can fill all those company positions. You may also have a different person in each position.

For lenders, consistent information is key to them and to you.

Lenders also prefer to see consistent information across all public points of data. This means that the information displayed by the Colorado Secretary of State is consistent with what’s displayed everywhere else, including the loan application. Consistency and transparency is key when applying for business credit, and building it long-term.

What needs to be done before opening the bank account?

  1. Apply for the EIN.
  2. If necessary, file to do business in the state where you seek to do business. The bank may require this before you open the account. While you’re waiting for the state filing to go through, you can also apply for an online bank account. Call us at 484.599.1070 at any time to discuss this step.
  3. Photo ID
  4. Grab a folder and prepare the following:
4. Grab a folder and prepare the following:
  1. Articles of Incorporation or Restated Articles of Incorporation (provided)
  2. Certificate of good standing (provided)
  3. Resolution to open the bank account (provided)
  4. Initial deposit (minimum $100). If you open a brokerage account, then the initial deposit is usually $500.

What do you need to open a merchant account to accept payment through Visa, Mastercard, American Express and Discover?

  1. EIN
  2. Bank account opened. You’ll need the account number and the routing number of the bank, the address of the bank. The routing number for ACH transactions is often different then the routing number to accept wire transfers.
  3. Articles of incorporation/Restated articles of incorporation.
  4. Certificate of good standing.
  5. Your website is up and running. The domain is registered to you or your business. Provide the domain URL on the application.
  6. Show that the Terms of Use/Terms of Service is on your website. Print off a copy or save as PDF.
  7. Photo ID.
  8. Your Social Security Number.

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