After you have decided to incorporate your first company, you should incorporate another two to five businesses, even if they aren't planned to be used at the moment.
This strategy has several key benefits. If you want to build a business or get corporate credit, you need to follow us for more detailed steps.
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After you've established your first business and are working on it, you might need to move some assets around to protect yourself or pursue new business opportunities.
Once you have created your first corporation and built its creditworthiness, it will be easier to get credit for other corporations. This is known as daisy-chaining. This is an excellent way to build credit for multiple corporations using all the hard work you've already done.
Multiple corporations allow you to set up your own shelf corporations. These corporations are chosen based on their age and will make it easy to start any business in a fraction of the time. These shelf corporations can add tangible value to your bottom line in many ways.
If you ever decide to sell one, the average going rate would be approximately $1,000 per annum. And if the asset has any corporate credit attached, its value could triple, or even quadruple.
Statistics show that the majority of businesses fail within 1 to 5 years after their inception. If this is true, then simply having multiple corporations ready to go will make it irrelevant. Because you strategically and carefully plan ahead, you can create unsecured corporate credit financing for businesses that are already established.
If you follow these four steps correctly, you can get through any type of business downs or ups. You will see that you can not only set up your first corporation but also establish unsecured corporate credit lines worth thousands of dollars.