While shelf corporations offer many benefits, there are legal considerations to keep in mind. For instance, the corporation may have previous legal obligations, such as taxes, outstanding debts, or other liabilities. It is crucial to conduct due diligence to ensure that the corporation does not have any hidden legal or financial issues. Moreover, the new owner must ensure that the corporation complies with all local, state, and federal laws once they take over. The proper filing of tax returns and annual reports is also essential to keep the business in good standing.

Shelf corporation