Is a lease valid if signed before an LLC was formed?

Full question:

I signed a lease with a Tenant who did not form his LLC until 4 months after the lease was signed. He named the LLC as lessee.

Answer:

The lease remains valid. If there's a default, you can argue that the LLC accepted the lease terms by using the premises. Alternatively, the individual who signed the lease may be held personally liable.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

If an LLC breaks a lease, it may be held liable for any damages or unpaid rent. The landlord can pursue legal action to recover losses. However, if the LLC is not properly formed or if the lease was signed by an individual before the LLC existed, the individual may also face personal liability.