Kevin Wessell Warns Public of Timeshare Scam

April 25, 2011 - PRLog -- My name is Kevin Wessell. I am the CEO of 1-800-COMPANY.com (R). We establish corporations and LLC's for people around the globe. We file documents with the appropriate government agencies to create new companies. These entities are used by people to, among other things, operate businesses, legally reduce taxes and protect assets from legal liability. We establish thousands of companies per year and are one of the leading company formation firms worldwide.

Every so often one of our customers utilizes his or her company in a manner that draws unwanted attention. This is one of those times.

Fairly recently, we had one or more customers order companies from our organization to operate businesses in the timeshare industry. Though we do not know firsthand, from our understanding, they were offering to sell timeshares for people who had this category of property for sale.

We do not know if these companies have violated the law in any way. Complaints we are reading online suggest that there were instances that several of the companies accepted up-front fees for reselling timeshares. Then once the fee was received by the company, the sale did not actually take place. The up-front fee was not returned to the seller of the timeshare.

Our company forms business entities and acts, directly or indirectly, as registered agent for service of process for thousands of companies. Most or all corporations and LLCs are legally required to have a registered agent. The registered agent will typically accept legal service for a company and forward mail that is received on behalf of the company.

Viewed in isolation, one might falsely assume that we were involved in the businesses that we form. This is somewhat analogous to the name "Ford" being placed on an automobile created by that manufacturer. Likewise we are the "manufacturer" of a multitude of business entities since our names are seen as the incorporators of corporations and organizers of an LLCs.

A Ford dealership may service the automobile. We, in kind, will perform our legally required duties as registered agent and forward mail and accept legal service.

When someone buys a Ford, he or she may use the car to deliver food to the poor or rob a bank. If the latter course is taken, it does not mean that Mr. Ford is pursuing a new way to raise capital.

Naturally, if a customer told us beforehand that he or she was going to use our services in an unethical fashion we would decline doing business with him or her. However, we neither have a crystal ball, nor do those with ill intent tend to enlighten us with their illicit plans. We have not been informed about the conclusions of any investigations in this incidence. Perhaps time will tell.

Meanwhile, we suggest that if you have a timeshare for sale, that you find a reputable reseller. Check around. Make sure you are dealing with the appropriately licensed company that has a clean track record. Alternatively, one may sell property without a reseller. There are free and low cost advertising options such as Craigslist and eBay. Then once a suitable buyer is found one can use a tile/escrow service such as First American Title or Chicago Title to handle the transfer of funds and document filing requirements. We recommend receiving licensed legal and tax advice to be on the safe side.

Sincerely,

Kevin Wessell
CEO
1-800-COMPANY.com (R)