I have a 2 year old Nevada S-Corp that I am interested in selling. My intention was to initially use it for acquiring and selling property held less than a year. The property I am now dealing with requires holding it for longer. Does anyone on this site know of any services that I can use to sell this corporation for me?
It also includes a bank account, and a credit card with a limit of 15K. All renewal payments are up to date as of this year includes business license fees and listing of officers.
Shelf corporations are a way promoters make money when they get stiffed on incorporation fees. Unless you have a going concern operating a profit or a valuable name or website address, the value of the company is the market value of the assets.
The only thing a buyer could use from your 2 year old corporation is the name. The tax id, bank account and credit cards will all have to be dissolved or cancelled prior to transfering ownership. Otherwise, you will be responsible for the anything that is charged on the card or withdrawn from the bank - since you established it.
The 2 year age of the corporation may be of some value, but with the tight credit market, my guess is that it is probably irrelevant to most lenders. In addition to the born on date, the corporation would have had to have a consistent address, land telephone line, business directory listing, etc.
Deal Hunter is right…2 years means nothing in this market…my corp is two years old and I still have to sign personal guarantees…hopefully not for too much longer…but there is no quick way…just like no get rich quick or quick credit repair…forget what the gurus tell you on late night TV…the way to build a corp or your own credit is with time and tradelines that you pay on time. You can’t fudge the system…
My goal is to sell the corporation not for profit but just to recoup the money I have paid for it. I won’t be using it for what I intend to do with real estate. I will have to dissolve it before 3 years if I show no profit from it. Can anyone direct me to someone who sells or buys corporations like this? Thanks.
By the way, I didn’t realize I could not transfer the cc into someone elses name. Wouldn’t it still be easier for someone who wanted to establish an LOC to do it with a corp which is already established?
“Wouldn’t it still be easier for someone who wanted to establish an LOC to do it with a corp which is already established?”
Nope. Sorry, that may have been true a year ago, but the credit market has changed and age of incorporation is irrelevant now for acquiring credit. The new owner of your corporation has to get a new Tax ID and establish credit from scratch as if it was a brand new corporation.
Ok, I have someone interested in buying my s-corp. but need to know if it is possible to transfer their name onto the credit card. The money they want to use to purchase it is by using the credit card associated with the corp. and taking out a cash advance and paying that back to me over a year. This would be through a signed agreement. Would I still be responsible for payments associated with that card if I can transfer it into their name? Would the credit card company even allow me to transfer it into their name? I am assuming no but just want to get a response on the forum if this situation has even been heard of.
As stated earlier in this post, I would have to completely close out the credit card account if transferring the business into their name? In this case would the name of the s-corp have to be changed so that I am no longer associated with it at all? Thanks.