I am a business owner in Texas and signed a five year commercial lease under my single member LLC. I negotiated a 3 year personal guarantee (instead of all five years) into the lease and I have been open just over two years and am eleven months away from hitting the three year mark. I have paid all my rent on time and have done everything else required for the personal guarantee to end after three years. My landlord has been excessive in their triple net increases and I am now paying double the original rate. My business is breaking even, but is not returning the profit I had hoped. I have tried selling, but have not had any success doing so and would like to pursue other business opportunities and would welcome feedback on my option... personal guarantee expires. I have approximately $50,000 worth of equipment in my business that I am leasing to buy and still have three years remaining on the lease that I will pay off. Here are my questions:
1. If I decide to close my business after my personal guarantee expires, but still have approximately two years remaining on my lease, what (realistically) are my personal risks/obligations to my landlord for the balance of the lease term?
2. If I decide to close my business after 3 years, I assume I should try and sell or remove my equipment first and also dissolve my LLC. Please advise on any suggestions regarding procedures or steps to take and how one dissolves an LLC.
3. What other recommendations would you suggest to limit my personal financial exposure?
4. Any other advice or things to be aware of?
Thanks in advance for your learned feedback, it is very much appreciated!