Legal Question in Landlord & Tenant Law in California

Re: Will LLC protect me?

The LLC should protect you so long as you have not signed a personal guarantee. If, for example, you signed the lease with the terms, "as president" or something similar, then you may be O.K. However, if you signed the lease in your name alone, or if you are named as a tenant, you could be in civil lawsuit trouble. But, that is what the bankruptcy laws are for.

Re: Will LLC protect me?

It really depends on the original lease.

Read your provisions carefully and see if there is a provision regarding liability under the lease assessing damages to the LLC or to you, personally.

It might be wise to run it by a local attorney, or e-mail, fax, or scan it to my office and I can review it.

If the landlord was wise, or had a competent attorney draw up the lease, you will probably be individually liable.

Re: Will LLC protect me?

Your question is unclear. If you are selling the business to another person who has an LLC then why not have them also assume the lease? If you are just shifting your business from one LLC to another that you own, the landlord could go after your new LLC and maybe you since it appears to be a sham transfer, especially if the only reason for doing it is to get out of the lease.

See if you can sub-lease it to another business or make an agreement with the landlord that you will pay 75% of the monthly lease amount until he re-leases or X months, which ever comes first. If you breach the lease, the landlord has the duty to mitigate damages which means he must make reasonable efforts to find a new tenant and you are only liable for the rent during the time it remains vacant.