Legal Question in Real Estate Law in New Hampshire

LLC and lease termination

I signed a 3 year lease and signed it only with my LLC, not personally. I am the sole member. I am only one year into my lease. I need to close my small business because it is not making any money- I am taking personal money to pay the rent. If I close the business (and the LLC) am I responsible for the remainder of the lease even if the LLC I signed under is no longer in existance and has no assets (and 10,000 of credit card debt)?


Asked on 6/11/08, 8:14 pm

2 Answers from Attorneys
Roy Weddleton Granite Law

Re: LLC and lease termination

Generally, if the LLC is in good standing; you signed the lease solely for the LLC; there is no personal guaranty then the landlord can only seek assets of the LLC and not you personally.

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Answered on 6/12/08, 8:06 am
Bruce L. Dorner Dorner Law Office

Re: LLC and lease termination

If you did not provide a personal guaranty and did not make any subsequent oral promises of payment or any other form of conduct indicating you would be personally responsible for the debt, you are likely in good shape. It would be difficult for the landlord to make a claim against you personally. However, without reviewing the lease and the integrity of your LLC documents it is difficult to go further. Many people form their own LLC and do not comply with all of the statutory requirements. The issuance of a Certificate of Existence is not enough to protect you in all circumstances.

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Answered on 6/13/08, 12:07 pm


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