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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.

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.

Q: Who signs a lease for LLC?

A lease for an LLC should be signed by an authorized representative of the LLC, such as a member or manager. It's important that the person signing has the authority to bind the LLC to the lease agreement.

Q: Can an LLC be on a lease?

Yes, an LLC can be named as a lessee on a lease. The lease must clearly identify the LLC and be signed by someone authorized to act on behalf of the LLC.

Q: Can you be personally liable for LLC debt?

Generally, members of an LLC are not personally liable for the company's debts. However, if an individual personally guarantees a lease or if the LLC is not properly maintained, personal liability may arise.

Q: Can a lease be under a company name?

Yes, a lease can be executed under a company name, such as an LLC. The lease should specify the company as the lessee and be signed by an authorized person representing the company.

Q: What happens if an LLC defaults on a lease?

If an LLC defaults on a lease, the landlord can take legal action to recover damages, which may include eviction or seeking unpaid rent. The landlord may also pursue the individuals who signed the lease if the LLC was not properly 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.

Category: Landlord Tenant
Date: 04/07/2025
State: National

Answer:

The lease is still valid. If there is a default, you can take the position that either the LLC confirmed the terms of the lease by entering and enjoying the premises or that the person who signed the lease is individually 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

What happens if an LLC breaks a lease?

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.