Lease Agreement Llc

Lease Agreement LLC: What You Need to Know

If you`re thinking of starting a business, one of the first things you`ll need to consider is where you`ll operate. If you`ve decided to lease commercial space, you`ll need to sign a lease agreement. But what if your business is set up as a limited liability company (LLC)? Here`s what you need to know about lease agreement LLC.

What is an LLC?

An LLC is a business structure that combines the personal liability protection of a corporation with the simplicity and tax flexibility of a partnership. LLCs are popular among small business owners because they offer the protection of a corporation but don`t require the same level of formality in terms of record-keeping and compliance.

Why is an LLC important when signing a lease agreement?

When you sign a lease agreement, you`re entering into a legal contract with the landlord. If something goes wrong, the landlord can sue you personally for damages. However, if your business is set up as an LLC, your personal assets are protected from any legal action taken against the company.

In addition, signing a lease agreement in the name of your LLC helps establish a clear separation between your personal and business finances. This can be especially important if you ever need to apply for a loan or line of credit.

What should be included in a lease agreement LLC?

When signing a lease agreement on behalf of your LLC, there are a few key things to keep in mind. First, make sure the lease agreement clearly states that the tenant is the LLC and not you personally. The LLC`s name and address should appear on the lease agreement, and the LLC should sign the lease as the tenant.

Additionally, the lease agreement should include specific language about the LLC`s liability. For example, the lease should state that the landlord cannot hold individual members of the LLC personally liable for any damages or breaches of the lease agreement.

Finally, it`s always a good idea to have an attorney review the lease agreement before you sign it. A qualified attorney can help ensure that the lease agreement is fair to both parties and protects your LLC`s interests.

In conclusion, if you`re starting a business and planning to lease commercial space, it`s important to understand the implications of signing a lease agreement as an LLC. By taking the time to properly establish your business structure and review the lease agreement with an attorney, you can protect yourself and your business from potential legal issues down the road.