Posted on: 13th Oct, 2009 09:45 am
I personally signed commercial lease. If the business fails before the lease is up can the landlord come after the house, even if there are 2 different names on the deed, not just my name?
I the answer to that would depend on the terms of the lease - have you personally guaranteed the lease payments? Not your business?
I never signed anything such as a personal guarantee
ok, so your company signed up for a lease and you're wondering if you personally can be held accountable for the lease if the business fails?
If so, I think you should be ok. From my old high school accounting classes, if your business is a limited liability company, which most are, then I theink you're safe enough, it is incumbent on the lessor to ensure you are a good risk. If the business fails, the lease holder will become one of your creditors, as your business has a binding obligation to continue to pay the lease until it's term expires, but aside from that I think you're ok.
I'd hate for you to accept this as gospel though - perhaps someone else with more current knowledge could confirm my thoughts are correct?
If so, I think you should be ok. From my old high school accounting classes, if your business is a limited liability company, which most are, then I theink you're safe enough, it is incumbent on the lessor to ensure you are a good risk. If the business fails, the lease holder will become one of your creditors, as your business has a binding obligation to continue to pay the lease until it's term expires, but aside from that I think you're ok.
I'd hate for you to accept this as gospel though - perhaps someone else with more current knowledge could confirm my thoughts are correct?
there was a section at the end of the lease that explains the Guarantor and had to be notorized but, my copy is blank and not notorized. Does this help my cause?
If there is no guarantor listed on the lease, then yes, I expect that could help you.
Your business is liable for the loan payments, not you personally, unless there is no legal distinction between you and your business (this is often the case with small owner operated businesses, but depends on the legal structure of your business). If your business is a limited liability company should be fine. As I said though - this advice should be seen as a substitute for a true legal opinion!
Your business is liable for the loan payments, not you personally, unless there is no legal distinction between you and your business (this is often the case with small owner operated businesses, but depends on the legal structure of your business). If your business is a limited liability company should be fine. As I said though - this advice should be seen as a substitute for a true legal opinion!
Thats true
They cannto go after yoru person assests. You singed the papers representing the business and the business is laible to pay the money
They cannto go after yoru person assests. You singed the papers representing the business and the business is laible to pay the money
and what happens if the lease is in my name with DBA attached. I signed it personally. the legal name of he business is an LLC. If the business fails, am I HELD PERSONALLY ACCOUNTABLE FOR THE REMAING LEASE? Can mt personal assets be touched?
Hi shunnies,
As far as I know, the DBA is required when you are operating a business under a name that is different from the business' legal name. But this does not make you liable for the debts incurred by the business. You signed the lease on behalf of the LLC. So, you personally are not responsible for the lease. Your personal assets cannot be attached in case the LLC fails to keep the lease commitment. However, it is better to consult an attorney as he is the best person to guide you in this regard.
As far as I know, the DBA is required when you are operating a business under a name that is different from the business' legal name. But this does not make you liable for the debts incurred by the business. You signed the lease on behalf of the LLC. So, you personally are not responsible for the lease. Your personal assets cannot be attached in case the LLC fails to keep the lease commitment. However, it is better to consult an attorney as he is the best person to guide you in this regard.
my copy of the lease and my attorneys copy of the lease show the personal guarantee left blank. It it possible for only the landlord to have a filled in copy of the guarantee?
Hi shunnies,
All the copies of the lease should be the same. It is hard to comprehend why your copy and your attorney's copy of the lease agreement would be different from the landlord's copy. Have you consulted with your attorney regarding this? What does he have to say about this?
All the copies of the lease should be the same. It is hard to comprehend why your copy and your attorney's copy of the lease agreement would be different from the landlord's copy. Have you consulted with your attorney regarding this? What does he have to say about this?
The first sentence of the commercial lease reads a lease to (name), an individual, dba (name of Business), having an address of (Tenants home address). Does this hold me liable if the business fails?
Hi,
If the business company is an LLC, it has got a legal entity separate from its owner. The company's debts will not be considered as yours. In that case, you will not be personally liable for any of the companys debts, in case the business fails. But you need to get the lease contract reviewed by an attorney as he/she is the right person to interpret the language and terms of the contract.
If the business company is an LLC, it has got a legal entity separate from its owner. The company's debts will not be considered as yours. In that case, you will not be personally liable for any of the companys debts, in case the business fails. But you need to get the lease contract reviewed by an attorney as he/she is the right person to interpret the language and terms of the contract.