Legal Question in Business Law in California

Re: LLC-Business Law

It is hard to answer your question without having more information about the company, it's assets and the original lease contract. Usually, especially in new businesses, landlords require company executives/members to personally sign on a loan (making their personal assets subject to a creditor action). General guess on the rest of the questions, impossible to answer adequately without further information:

1). Yes you probably should, if nothing other then stating the LLC is defunct and no longer in existence. Remember if you are personally liable by the lease agreement, not replying could be very bad. Further if they can make a claim that you removed assets from the LLC before paying the outstanding creditor actions (such as the lease agreement), then you are also in a bad situation.

2). You could have a judgement entered against you, essentially you could be giving up your right to defend yourself.

3). Yes, possibly, see above.

4). Once again, see above answers

5). Many potential reasons: underfunding of the LLC, "raiding" the LLC's assets (as described above), failure to maintain the company as a seperate entity, so on and so forth.

Bottom line, you should speak to an attorney who can look at the whole situation and review the documents.