If I’ve rented an apartment and would like to register an LLC at that address, would the landlord have any liability, tax issues, or credit issues due to this?

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If I’ve rented an apartment and would like to register an LLC at that address, would the landlord have any liability, tax issues, or credit issues due to this?

For example, would their credit report show that there is a business registered at their rented address or would they have to pay extra/different taxes etc.) ? The LLC would have me as its only employee, working from a home office.

Asked on July 14, 2014 under Business Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You may not be able to do this.

First, check your lease: if it states that the premises is only to be used as a residence, you may not register or run a business there--you are bound to the terms of the lease.

Second, depending on the nature of the business and the zoning for that unit, the law may not allow you to register or run a business there. You can check zoning at your town/city hall or department of buildings or code enforcement.

If you do run a business or register a business from that unit, it may affect your renter's insurance (if you have it; your insurance is presumably based on the unit being a residence, not a business, and if you do not disclose the business--and presumably, pay something extra for the correct insurance--you may have insurance claims denied); it may also affect the landlord's insurance, if the nature of the business and/or the amount of traffice (e.g. clients, customers) alters the risk profile for the landlord.


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