Legal Question in Business Law in Maryland

If I sign a retail space as sole proprietor , and few month later convert my company to LLC , will this change apply to my signed lease and get my lease covered under LLC?or have to sign a new lease with landlord

Asked on 10/04/23, 8:11 am

2 Answers from Attorneys

Frank Natoli Natoli-Legal, LLC

The LL is going to require you to guarantee the lease anyway. You can let the LL know that you would like the LLC to be resonsible for the lease and it may amend the lease to allow for at least some portion of it to default to the entity but I would not expect the LL to do that at this point,

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Answered on 10/04/23, 8:18 am
Cedulie Laumann Arden Law Firm, LLC


The answer to whether a lease is assignable depends on the precise language of the lease. Almost always this is going to require Landlord assent, sometimes it will require a whole new lease and sometimes just an assignment. And the Landlord may have the right to say "no" or to require a lease assignment fee. As another attorney noted, commercial leases with an LLC generally have the individual owners all sign personal guarantees agreeing to be personally responsible.

While not legal advice, I hope that this helps.

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Answered on 10/04/23, 8:27 am

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