If I recently started an LLC and am about to sign a lease for an office space, should the lease have my company listed as the tenant or me personally?
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If I recently started an LLC and am about to sign a lease for an office space, should the lease have my company listed as the tenant or me personally?
Does it matter? The language in the lease says I am leasing the space as an individual.
Asked on April 14, 2015 under Real Estate Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If you sign or lease as an individual, then you are personally liable for the rent: so if, say, your business fails and/or you can't otherwise make the rent, the landlord could sue you personally for the money. If you lease as an LLC, then the landlord can only seek the money from the LLC, not you personally. You very much want to sign/lease as an LLC; but the landlord may not agree to it, and may refuse to lease (as is his/her right) unless you sign as an individual or otherwise personally guaranty the lease, because he/she wants more of guarant of payment then he has with a new LLC, which could safely walk away from its obligations.
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