You Can Form Your Own Corporation

Many banks have experienced the results of crimes committed by persons using phony corporations as a front. The appearance of integrity and solidarity that once characterized the word "corporation" has been threatened in the past twenty years, however, by a relatively unknown kind of business. Pick up any airline magazine and learn how to start a corporation easily and inexpensively.

Several companies specialize in forming corporations for clients for a fee. These companies advertise that "You can form your own corporation by phone in any state in as little as eight minutes, for a fee as low as $45.00, charged to your credit card." State filing fees are extra and Delaware is the acknowledged leader in corporate filings.

"Shell", or "dummy" corporations, are often used to hide assets from money laundering and drug dealing, and are also used for kiting and loan frauds. Pay attention to applications from out-of- state corporations that want to start a business relationship with your bank and call your state's Department of Corporations for more information.

Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 6, 4/96