What happens if I started an LLC for a retail shop that I opened but signed the lease before the LLC was formed?

I signed a rental lease while the LLC was being formed. I have used the space strictly for the LLC store that I created. 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?

Asked on February 9, 2015 under Real Estate Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, if you signed the lease before the LLC existed, then you would have signed in your personal capacity--i.e. as yourself. Therefore, you personally are obligated to the lease, so the landlord could come ofter you if you break the lease. It does not matter why or how you used the space--only that you signed the lease.


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