Risks of buying an LLC in Slovakia

Buying someone else's LLC in Slovakia may seem like a quick and convenient way to start a business, but this path is associated with a number of significant risks that are important to consider:

• Financial obligations. When you buy someone else's LLC, you take on not only the assets, but also all of the company's debts: loans, unpaid taxes, fines, and other debts. A full check of the company's financial history can be difficult.
• Reputational risks. The company may have hidden reputational problems, lawsuits or conflicts with counterparties. This may negatively affect your future relationships with partners and clients.
• Lack of transparency in the deal. Sellers may hide the real reasons for the sale, such as upcoming tax audits, business problems, or legal complications. This can be an unpleasant surprise after the purchase.
• Legal liability. If previous owners violated laws or business regulations, you may be held liable. This could result in fines, lawsuits, or even criminal prosecution.
• Problems with documentation. Missing or incorrectly executed company documents can create difficulties in managing the business and its further development.