We are forming a LLC and want to lease a building, how do we sign to protect our personal assets?

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We are forming a LLC and want to lease a building, how do we sign to protect our personal assets?

Our LLC name has been approved and the paperwork is being processed. We want to lease a building. How would we sign under a LLC to protect our assets? Also, do we have to wait until the LLC paperwork arrives?

Asked on June 9, 2011 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) Wait until you know *for sure* the LLC has been formed--not just the name approved and paperwork in process--and you have also the tax ID number. Don't assume everything will in fact go through as it should

2) When you sign the lease (and any other paperwork), sign as:

"John Doe, President
for Limited Liability Company, LLC"

signing using your title, for the company.

3) Also make sure that the LLC, not you, is listed as the party leasing the building. And use the LLC's tax idea number.

4) Finally, be aware that if you sign any personal guaranties, that throws the LLC protection out the window...though some landlords will not lease w/out a personal guaranty, especially to a new company (i.e. one without significant assets or a track record).


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