If I’m opening a small business, do I need to immediately have an existing LLC to close on the purchase of the equipment or can I incorporate after the purchase?

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If I’m opening a small business, do I need to immediately have an existing LLC to close on the purchase of the equipment or can I incorporate after the purchase?

I will be entering a 36 month lease with the landlord of the building, and purchasing the existing equipment from the current occupants. I want to incorporate into a single member LLC structure. Do I need to have an existing LLC to close or can I incorporate shortly after without any legal hang ups?

Asked on May 15, 2014 under Business Law, Florida

Answers:

Shawn Jackson / The Jackson Law Firm, P.C.

Answered 7 years ago | Contributor

Ideally, yes, you will want the LLC first and the lease to the LLC and not you personally. With that said, most landlords will not just agree to have the lease be under a "new" LLC and will probably require either that the lease be under your personal name and/or that you sign a personal guarantee...and one option is better than the other. I would recommend that you contact an attorney in the State in which you live for a further discussion.

Shawn Jackson - California Business Attorney


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