A shelf company is a corporation placed on a shelf to age and sell to the person who needs to start his business. If you wish to start your business, shelf companies can be of enormous importance because they are already formed and save a lot of your time to incorporate the new business.
Why is it advantageous to start a business in North Carolina?
North Carolina is the 9th wealthiest state in terms of gross domestic product, and in 2017, it recorded a gross state product of $540,496 billion. Also, some of the top companies reside in the North Carolina, such as; Bank of America, Compass Group, PRA Health Sciences, Duke University, Lowe’s Companies, Duke Energy, Hanesbrands, Carlisle Companies and Quintiles Transnational Corp. let’s briefly discuss the benefits of carrying out a business in North Carolina:
- North Carolina can help you pass through taxation if you buy an S corporation, and the income will be passed on to stakeholders of the company.
- If you want to start an LLC in North Carolina, then it benefits you with limited liability protection and flexible profit distribution. An LLC in North Carolina can provide you with the benefit to select different ways of profit distribution, unlike a partnership.
- North Carolina offers the use and sales tax exemption and discounts to businesses. You can be benefitted from an exemption of sales and use tax if you wish to start a business related to sales of machinery parts, machinery and equipment, and electricity.
- The state of North Carolina also offers small businesses with various incentive programs such as Green Business Fund, Industrial Development Fund, Economic Infrastructure Program, Community Development Block Grant, Rail Access Program and North Carolina Rural Economic Development Center Building Reuse and Restoration Grant.
- The tax foundation in North Carolina raked 12th for business taxes, which is pretty low comparatively. The maximum income tax rate in NC is 2.5% which is lower compared to other various states. The tax structure in the state is pretty favourable to small and large scale businesses.
- When it comes to the cost of running a business, it is very much favourable in North Carolina. Also, the cost of electricity, housing, labour and transport is very affordable.
- Another important thing for a successful business is the labour market. The labour market in NC is very competitive because of the lower unemployment rates. It helps the companies to become a better workplace because of the demand for skilled workers.
- North Carolina’s cost of housing is another attractive factor for experienced and skilled business owners.
Why should you choose an aged company to start your business in NC?
Shelf corporations are the companies that are incorporated in previous years and then kept inactive to be sold later. They aren’t involved in any real business, and neither do they have any tangible assets. Purchasing a shelf company can be very beneficial in quickly accessing lease contracts, securing asset protection and incorporating as a sole proprietor for many years. Let’s discuss a few of the worth noting reasons to choose a shelf company to start your business with:
- A company’s age is directly proportional to its credibility, and hence, shelf companies can potentially enhance the business’s credibility quickly.
- Shelf companies are attractive options to get corporate credit cards, business loans and various other facilities.
- Aged companies can quickly obtain work permits for your business.
- The suppliers and clients usually prefer to do with business with a well-established company instead of a newly established one.
- You can get quick access to investment capital with a shelf corporation.
Start your business in North Carolina using a Shelf Corporation in 10 simple steps:
- Find the right business idea– Finding a perfect business idea is indeed the first step towards a successful business. Select a concept according to your interests and skillsets because it will keep you motivated towards your goals and towards improving all the odds.
- Do Careful planning– Careful planning is a must for any business. Starting a business in North Carolina is indeed an excellent business approach, but you must analyze your idea and create a proper plan before committing your time and money.
- Select a suitable business location in North Carolina– The location of your business will determine the kind of permits and licenses you’ll need. So, it becomes highly essential to select the business location accordingly. For instance, areas such as Greensboro or Charlotte in North Carolina are pretty popular in increasing the foot traffic for your business.
- Conduct proper market research– You need to conduct adequate market research about the shelf companies and the kind of business you are going to proceed with.
- Select a business structure according to your needs– Different business entities can have different legal advantages. For instance, a shelf LLC can provide you with increased credibility and protection from personal liabilities in case the business is sued. If you want more formal regulations compared to an LLC, then a shelf Corp (Corporation) would be a more attractive option. So, you should decide your priorities and then according to select if you want a shelf LLC, a shelf corp., or shelf Inc.
- Buy your shelf company from a trusted seller– After conducting proper research, you can choose a seller to buy your shelf company. Nowadays, the process is a lot easier because you can quickly buy your shelf company online.
- Set up your business accounts and credit cards– Differentiating your bank accounts from the business accounts is the crucial step towards your asset protection. You must open a separate business bank account to help you make tax filing and accounting easier. Also, getting a credit card for your business account will be helpful in building a credit history for your company.
- Obtain licenses, if required– Some businesses might need to comply with a particular state, federal and local government regulations. For instance, a restaurant will need health permits. To start your company in North Carolina, you will have to obtain different permits and licenses according to the kind of business you are opting for.
- Arrange the funds– You will indeed need financing to run your business. No doubts that purchasing a shelf company can get you easier access to funds, but you still need to explore various ways to get funded.
- Hire skilled employees– The qualified and experienced employees are the definite for any business to succeed. To hire suitable employees for your company, you need to get registered with the IRS for employee taxes in North Carolina.
Also Read: How to set up an Inc. using Shelf Company