Is it Legal to Buy a Shelf Corporation?

March 31st, 2010 by admin

I see a lot of my business counterparts buying shelf corporations to raise cash for their company. They say you can easily get a loan by buying one. It’s also a quick way to own a company without going through the birth pains of establishing one from scratch.

I’m just a little concerned about the legal matters involved? Is it legal to just simply buy a company to get a loan that is worth many times over than the shelf corporation‘s  value? What if I can’t pay back the loan I got through the shelf company? What happens then?

 

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