Legal Question in Landlord & Tenant Law in New York

Re: yes lawguru answer to question

I assume this refers to a commercial lease. The advantage to the landlord of having you on the lease personally is that you are both personally liable for the rent and building condition. In the case of an LLC or S Corporation or other corporate form, only the corporation or partnership is liable for the rent in the event of any problems.

Clearly, it is in the landlord's interest for the purpose of protecting his interest to keep you on the lease individually. Any changes can be made through negotiation with the landlord, but not otherwise.

If your interest is to sell the business in whole or part and you are concerned that the lease is an asset that may not be transferrable, then please be relieved. If you sell the busines the landlord may deny the transfer only with "cause" (he needs a specific, fact based reason why he won't accept the buyer as his new tenant).

On the other hand, if you wish to change your corporate form and assign the lease to the new form (S Corporation is the most common option), then you do not need to landlord's permission to establish the lease as a "contribution" to the new form. You can assign the lease without the landlord's approval, but you remain liable. The new form is liable as well.

that is the best answer I can give you on the very few facts you have given me. If you tell me more, then more options open up.

You are welcome to a consultation at no fee at my offices at 42 West 44th Street, NY,NY. Please call for an appointment first (646) 591-5786.