Posted by Frank Chin on February 24, 2006 at 10:32:35:
Ron:
My dad leases stores to business in Corp Names, and I signed a lease for a business I own. I suggest you check the lease that you signed.
A sharp landlord for small business tenants would have you sign twice, once as Ron XXX, an LLC member, and once as Ron XXX, personally.
He can also choose to sue you personally. A tenant I had was the owner of a failed gas station. He was sued personally for equipment leases, even though he didn’t recall signing personal guarantees.
I signed a lease, as Operations Manager, for a business (an LLC not in my name). The business failed and quit paying rent. The landlord is sueing me for back payment of rent due to the clause in the lease that says you have to give 4 months prior notice to moving out. Am I personally liable for a business just because I signed the lease or does the landlord have to go after the owner of the business to collect. I don’t have the $$$ to cover this.
Two different issues here. The first is whether you gave a personal guarantee. So, check the lease as Frank said below. If you did not, then the issue is whether your landlord can “pierce” the corporate veil and hold you personally liable. Not likely, since courts generally don’t pierce the veil for contract liability issues. For gross negligence, fraud, etc, they are more likely to do so.