Let me start by addressing your two questions
1. If we move out I understand we will be liable for the rent we owe and I am sure he will sue us for the remainder of the lease agreement arguing that they need some one in there etc. Will this effect our credit?
It could. Particularly if they receive a judgment (a judgment is what happens when someone sues you and wins...the court issues a judgment or order to pay). Judgments do impact a credit score.
Now...there are certainly ways to avoid a judgement. The most effective is to negotiate a settlement and avoid court. Court (going to court) is expensive and time consuming...and there is always the element of risk associated with a court case (since you never can be certain what will happen at court). Even small claims court, where the costs are nominal (since you can act as your own lawyer) takes time and has that element of risk.
So it may be you can negotiate a settlement with the landlord to avoid court. This would avoid a judgment and protect your credit.
2. Also we had a sublease clause in the agreement. Is it worth our while advertising and trying to find a replacement tenant.
Yes...though you are at a disadvantage...since you are, in effect, starting off at a loss. In order to sublease, you need to come up with that money you owe up front. You must satisfy that 10 day letter or they will evict (or...they can evict...it may be you can negotiate this away...but at 10 days if you have not paid the entire demand, they can, by law, evict).
That said, if you can find a way to get the subtenant to pa the money you need to make the payment? Then you can avid breaching the lease.
Now...understand, you are ultimately responsible for the rent...so if 2 months from now the subtenant has problems and stops paying, you could be back to square one...but if you can find a reliable subtenant to take this lease on, that can be a way to avoid liability
Also if not, I have read that the landlord is required to release the building and make every attempt to. If he does and the rate is less than we would have paid I understand we are required to make up the difference. Is this true?
Yes. That is called mitigating damages
. That is required by law in all states (except NY)...so it will apply in SC. Practically speaking this happens automatically in most cases...the landlord wants the cash flow to continue....so they will advertise to relet the place. So normally this is not an issue. If they rent out within 1 month and can rent out for the remainder of your lease, that would limit the damages you have to pay.
But if they have a tough time renting, that could increase the money you have to pay.
Please feel free to give me any advice you can. This is for a LLC. We are having cash flow issues at the moment as June-August are our dead months but will be trading and have cash flow rectified from then on out.
Negotiation is the key here...if you can negotiate a settlement you reduce uncertainty for BOTH you and the landlord.
If you can not make the payment and the landlord evicts, I would keep up the dialog and try and negotiate a settlement...it may be you can limit your losses this way.
And if you can find the money? Somehow? So long as you pay on time, you can keep your original lease intact.
Please let me know if you have more questions...happy to assist if I can