For those of you who incorporate your business using IPIU's exclusive Colorado Program, the question comes up asking "How much is my corporation worth each year?"
Here are some ideas to consider:
- If you do nothing with your corporation each year, except keep it's state fees and registered agent current, then you basically have a "Seasoned Corporation" which can be resold by you to a new stockholder later on.
- What is a Seasoned Corporation? It is a corporation which was incorporated more than a year ago. Sometimes seasoned corporations were incorporated 50 years ago.
There are numerous reasons for purchasing a seasoned corporation or LLC. Some clients choose to invest in a seasoned corporation because they increase in value each and every year. Others choose to purchase seasoned entities to blend with their current business to gain increased business history, easily and effectively.
- Why would someone want to buy a seasoned corporation? The answer is typically that a seasoned corporation, otherwise known as an aged corporation, is shown on the public records as being in business for many years, thereby raising the liklihood that an owner can obtain unsecured credit for the corporation without having to use a social security card credit report. Having corporate credit instead of personal credit allows the owner to avoid personal liability for the debts.
- How much does a seasoned corporation sell for? They usually increase in value at a rate from $1000 to $3000 per year, and sometimes $5000 per year.
Here is a current For Sale list from one broker:
- 2 year old LLC/Corporation: $5,000
- 3 year old LLC/Corporation: $6,000
- 5 year old LLC/Corporation: $8,500 (reg: $10,000)
- 8 year old LLC/Corporation: $13,500 (reg: $16,000)
- 10 year old LLC/Corporation: $16,000 (reg: $20,000)
- 15 year old LLC/Corporation: $23,000 (reg: $30,000)
- How much does it cost to renew my corporation PLUS my annual Registered Agent & Office each year? Click here