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Dwayne B.
Dwayne B., Attorney
Category: Business Law
Satisfied Customers: 33147
Experience:  Practicing for over 20 years and helped a number of businesses with litigation.
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I purchased the existing business from my former employer, I have been paying rent for las

Customer Question

I purchased the existing business from my former employer, I have been paying rent for last 10 months, the landlord made him the guarantor and there is about 3 yrs. left on lease. Business is in the red for awhile and I do not have the capitol to keep this up. Am I responsible to pay the lease if I have to close doors. I have an LLC
Submitted: 5 years ago.
Category: Business Law
Expert:  Dwayne B. replied 5 years ago.
If it 1) is an LLC, 2) was treated like a corporation in your dealings and 3) you did not personally guarantee the lease then they couldn't get to your personal assets although they could certainly try.

What I mean by 2) above is that you didn't pay personal bills out of the LLC, etc. Where many people make a mistake is that even though they have an LLC they don't treat it like a real corporation which enables a creditor to "pierce the corporate shield" and get to personal assets.

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