Jul
28
Does a LLC have to be a guarantor for a commercial lease?
By
I meant to ask: Does an individual have to be a guarantor for a commerial lease even the lease is under the LLC name?
Quick House Sale
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2 Comments
August 11th, 2009 at 6:41 am
No, it can be an individual as long as they have enough credit. If fact if the LLC has no/ little history the lessor may insist on the individual signing for the LLC.
August 11th, 2009 at 2:30 pm
Bill’s answer above still applies.
A landlord will typically look for the best credit they can get attached to the lease. If the LLC’s financials looks weak, the landlord might well require a larger security deposit, letter of credit or personal guaranty from individuals in the LLC.