I signed a lease for an LLC but signed with my name. If I default on the lease can they come after me or just the LLC?
I started an LLC for a retail shop that I opened. I signed a rental lease while the LLC was being formed. I have used the space strictly for the LLC store that I created. My question is, if I fold the business and can no longer pay the rent can they come after me personally since it was signed in my name instead of the LLC? Even though I used the space ONLY for the business?
Typically with a new business a landlord would require the individual owner to at least guaranty the lease. It seems that what the landlord agreed in this case was to rent the space for you to use it as you wanted to in accordance with the terms of the lease. Why it would be good to speak with an attorney is to help you negotiate out of the lease. The landlord may be amenable to some buy out, especially if it is desirable space.
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If you signed individually and did not include any language that indicated you were signing on behalf of an entity to be formed, to which the lease would be assigned and which would be legally responsible, then unfortunately you may be personally liable for the balance of the lease. It doesn't matter that you used it only for the business. The landlord has the right to enforce the lease against whoever is legally responsible based on the lease terms.signed it. I agree with the previous answer that you should consult an attorney to review the lease, unless it is clear in your mind that you did not include any entity language and you signed it solely as an individual. In that case, you are going to be stuck with it.
This is general advice regarding the requirements of Pennsylvania state law only and not intended to provide specific legal advice for any situation without having all the facts and does not create an attorney-client relationship. Please consult an attorney in your area for more specific guidance.
The answer depends on the language of the lease and the identification of the parties. Is the LLC is listed as a lessee? Did you sign as the authorized representative of the LLC? Does you LLC operating agreement or bylaws empower you to do so? Did you pay the rent on LLC business checks drawing on a business account? Is there any language in the lease that contemplates the formation of the LLC? I think you need to take your lease and LLC documents to a local lawyer for review.