Business always associates with personal risk for entrepreneur. When you start doing something yourself, you need to keep in mind that responsibility will always follow. We have already point out several types of company structures before.

And now we would like to highlight 6 possible ways to save your assets in case of business problems.

1. Payroll taxes should be paid on time. It is an important government tax and it is strictly controlled by state authorities. Why is it so important to pay your taxes in time? When the company start losing their profit, owners are looking for a way to improve the liquidity and in the same time remove unnecessary expenses, which usually appear in overdue payroll taxes. It may lead to business fines or even criminal proceedings. Paying taxes on time will save you from these consequences.

2. Bank loans sounds like a good way to handle financial problems of your business. But you should consider it multiple times before making this decision. First of all, you should always be clear with your assets and income when you apply for the loan. It is important to choose reliable bank to apply. When business faces problems you have to be sure that taking loan will solve them. Moreover, we recommend to avoid taking loans from non-banking financial companies, because it will be more complicated to work and discuss returning conditions. Having an insured deposit in a reliable bank is a really good alternative and will help your business in case of any problems. Switzerland, Cyprus, United Kingdom or Singapore banks offer deposits that can play the role of your safety rope

3. There is different types of expenses and some of them are not related to profit-making itself. Hard times require cutting these expenses and focus on gaining money for further development. Sometimes it is reasonable to move to a cheaper office or partially switching to remote work. Loyal employees will also help you handle this difficult times.

4. Cutting expenses is a good idea but you should always remember to pay your debts and avoid preferential payments. Even if you are ready to initiate the bankruptcy process, it is better to pay off all the debts before submitting the papers. Redistributing of your assets after entering the liquidation procedure will be more complicated and will result in more expensive way that paying straight to creditors.

5. Plan your short-term expenses and avoid borrowing money from your company internal funds. Some owners think that they can cut insurance expenses or lend money from pension plan. Short-term planning will help you avoid spending your assets on projects that will not be profitable. Small investments to immediate-resulting projects may help you generate profits slowly but reliably and you won’t need to borrow and spend money you don’t really have.

6. Finding an Investor or sell part of your business is reasonable way to transfer your assets to someone by selling a part of your shares. Your losses will be minimized and another person might have possibility to save the company. Sometimes it is not a bad idea to enter the M&A procedure, wh ere your liabilities and debts will be transferred to a parent company and your business will be able to work.

There are multiple ways to save your assets. Entrepreneurs can seek help from a professional consultant, financial analyst or in some cases turn the page and look for a more profitable way to sell your company. Selling your business means you can start over and do something that will be more profitable, productive and efficient. We in OffshoreLicense Ltd are always here to assist you with your new company incorporation.