Risks of Buying an LLC in Slovakia

Acquiring someone else's LLC in Slovakia may seem like a quick and convenient start for a business, but this path is associated with several significant risks that should be considered:

Financial liabilities. When purchasing another company's LLC, you take on not only the assets but also all of the company's debts: loans, unpaid taxes, fines, and other liabilities. Conducting a full financial history check may be challenging.

Reputational risks. The company may have hidden reputation issues, ongoing lawsuits, or conflicts with counterparties. This can negatively affect your future relationships with partners and clients.

Lack of transparency in the deal. Sellers may conceal the true reasons for selling, such as upcoming tax audits, business problems, or legal complications. This could become an unpleasant surprise after the acquisition.

Legal responsibility. If the previous owners violated laws or business regulations, the responsibility may fall on you. This could lead to fines, lawsuits, or even criminal prosecution. Documentation issues. Missing or incorrectly prepared company documents may create difficulties in managing the business and its future development.