Purchasing a Matured Private Investigator "Shelf" Corporation:

Why Should I Use or Acquire a Private Investigator Shelf Corporation?

It is responsible to note that age is not the only factor and will likely not be a main factor in the private investigator business and lending relationships, engaging in business, credit, or real estate agreements.

As an established private investigator company it can save some time without having to go through the entire process and waiting time frames of establishing a brand new corporation.

Most potential business resources are hesitant to engage brand new or up-start corporations. By approaching them as an established private investigator corporation or company that has actually been conducting business (obviously, the more years the private investigator corporation has been in existence, the better), the more likely your company may be taken seriously and this may grant your business more access to business relationships.

To be clear, the credibility increases, in our opinion, when the private investigator company is actually engaged in the business and not merely by the number of years the company has been sitting on a shelf.

These relationships may include agreements, Dun & Bradstreet-type rating systems, etc., may also all be considered when looking at potential aged corporations. Additionally, it is of paramount importance that these shelf corporations are acquired from trusted sources that know the intricacies of weeding out those with potential built-in or existing liability.

Once you have properly selected your private investigator shelf corporation, the company has immediate filing history. Does it give you instant credibility for your company and corporate image? We cannot say that that will necessarily happen. But, what if you choose a company that coincides with the number of years that you have actually been engaged in the type of private investigator business that the corporation will perform? Naturally, there is no guarantee that you will instantly be able to bid on state contracts (states generally have minimum longevity rules for companies that are allowed to bid on their contracts), obtain lines of credit easier and obtain loans from the Small Business Administration in your state, and attract potential investors more readily with an “established” private investigator corporation. The bottom line is, be honest and let others know that you recently obtained the private investigator company, if that is the case.

As is mentioned above, it is critically important that the private investigator shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the private investigator corporation and ensuring that the extent of its business activities were limited to the application of an Employer Identification Number and maybe the formation of a bank account.

There are some quantifiable exceptions to this rule. There are times when very well established private investigator corporations get shelved, for a variety of reasons, and these can be inherently quite valuable due to their tenure or amount of time in existence. These can be carefully scrubbed for liabilities and exposure by qualified entities, and are in high demand, with the demand and their price increasing depending on how long they have been established.

Simply put, if you are buying an aged private investigator corporation directly from its owners, there is a fair amount of due diligence involved: you should be concerned if the person or group selling the aged private investigator corporation has engaged in any transactions that may produce some type of future liability for the corporation or its stockholders. This may not always be easy to examine, and certainly requires some expert investigation. The best practices approach is to only acquire aged or shelf private investigator corporations from reputable private investigator providers (or resellers) who have a history of successful transactions in this arena. These providers can be counted upon to provide indemnification to the purchaser (a guarantee against pre-existing debts or liabilities) for the sale, and to conduct all of the due diligence prior to offering the private investigator shelf corporation for sale.

Shell Corporations

Often times Shelf or Aged Corporations are confused with Shell Corporations, both in terms of definition and their reason for existence. This confusion could not be more erroneous. Shell corporations are completely different entities, both in scope and in formation.

A private investigator shell corporation (which may be US or International Business Corporations - IBCs -, Personal Investment Companies - PICs -, front companies or "mailbox" companies) is an incorporated company that does not have any significant assets or operational structure. There are some legitimate reasons for the existence of private investigator shell corporations.

For example, some private investigator shell corporations are, through the extensive filing processes with and approvals by the appropriate governmental and regulatory agencies, turned into publicly traded companies. These private investigator companies are often merged with existing businesses in what is called a "reverse merger." This is one manner in which one can go public quickly and efficiently.


Summarizing Points


Private Investigator Shelf and Aged Corporation Disadvantages and Caveats
  • Pre-existing liability potential
  • Pre-existing debt issues
  • Pre-existing business transactions that may lead to future liability

Private Investigator Shelf and Aged Corporation Advantages:
  • Saving time by foregoing the time and expense of forming a brand new private investigator corporation
    Instant access to contract bidding may not be possible in all cases. Most bidding contracts require that your private investigator company be in existence for a specified minimum length of time. Be sure to check on a case-by-case basis and use full disclosure as to when you acquired your company.

  • Instant private investigator company acquisition.

  • Private Investigator Corporate filing longevity.

  • May be more attractive to potential private investigator investors and investment capital. Naturally the proper legal filings need to be made and age of the company, alone, is only considered to be a minor factor.

  • May or may not have faster and easier access to borrowing. Again there are other factors that have more weight such as business credit rating and profitability.

    Nonetheless, we recommend honesty and full disclosure as to the date that you acquired the aged company.



Current Cost of purchasing a Matured PI Agency Corporation:
$299.99 plus matured value of number of years

To inquire, call 406-534-0251. Or use the CONTACT US link at the bottom of this page.