Corporate InsolvencyAfter the corporate insolvency process reaches its conclusion, you may want to rid yourself of your past business and start completely fresh. Although there is nothing that says you are prohibited from starting a new business after corporate insolvency, there are some things you need to remember as you go about the process.

Keep Your Business Separate

If you were forced to move forward with the corporate insolvency process because you were involved in a partnership or a sole proprietorship that held you liable for your company’s debts, consider going with a new structure for your business. For example, you may want to consider forming a corporation or a limited liability company.

Be Prepared for Financing Difficulties

Even if you choose to start a corporation or limited liability company, lending institutions will still rely on your personal credit history when they consider offering you capital if you previously ran a sole proprietorship or a partnership. To enhance your ability to acquire funding, make sure you:

  • Prepare a comprehensive business plan
  • Consider opening up your new business with a partner who has good credit
  • Look into financing programs in your local community specifically catered to small startups

Additionally, instead of relying on your bank for funding, you may want to think about finding investors who are willing to give you capital.

Maintain Reliable Records

Once you get your new business running, it is imperative that you maintain accurate financial records and stay on top of any debts you owe. Later on, these records can help you acquire additional financing and ensure that you always know what is going on financially with your company.