Legal Question in Business Law in California

We are forming a LLC our name has been acepted and the paper work is in Sacramento. We want to sign A lease on a building before it is no longer available. 1. Can we sign A lease under the LLC name before all the paper work is final? 2. Even if we have to wait how do you sign a lease and be protected by the LLC Is it LLC name ,Your name then LLC???


Asked on 6/09/11, 10:50 am

3 Answers from Attorneys
Shawn Jackson The Jackson Law Firm, P.C.

Well, if the paperwork has been "accepted" do you have a LLC number? The short answer is that you can sign the lease as the LLC so long as the landlord will accept that "entity" to be the responsible party. Often times with such circumstances, the landlord will also want the individuals on the lease and/or sign a guarantee on the lease...so further discussion may be necessary By Grace...

Shawn Jackson ESQ. (707) 584-4529

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Answered on 6/09/11, 11:00 am
Ashley C L Brown Law Offices of Ashley C. L. Brown

You should be able to sign the lease on behalf of the LLC, but you probably should have an attorney complete the organizing documents and review the lease itself.

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Answered on 6/09/11, 11:41 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I know the Secretary of State takes weeks to process and return new LLC and incorporation filings, but the paperwork comes back stamped with the date the papers were originally accepted for filing. Therefore, your LLC should be treated as being in existence from the date of filing, although there is a tiny risk that the papers will get lost or rejected.

Therefore, you would be justified in signing the lease on behalf of the LLC.

The landlord may ask for personal guarantees. This is very common with small business leases especially where the tenant is new to the property -- even when it has been in business for years and has a good payment record.

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Answered on 6/09/11, 12:03 pm


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