Closing an LLC and terminating a lease

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Latest post Thu, Sep 29 2016 7:19 PM by Drew. 3 replies.
  • Thu, Sep 29 2016 12:37 PM

    • ARZB
      Consumer
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    • Joined on Thu, Sep 29 2016
    • MD
    • Posts 1

    Closing an LLC and terminating a lease

    I am currently in year 3 of a 5 year lease but will need to close my business located in Maryland. I have never been late on a rent payment and owe no money other than the remainder of my lease. My lease is personally gaurenteed by me only but I have not made a salary in 3 years (my husband supports us-he is not on the lease) and have no money in my personal bank account. My husband and I do not share any bank accounts either. The business has very little money in the bank (one reason we will need to close). We have spoken to our lanlord and property managers about the situation but they give us no help- they will not say if they will end our lease early, off us a lower buy out etc- they probably will not answer as we actively are paying our lease. I need help with my next step. Do we just close our doors and walk away in a month? We have about $10000 in equiptment in place- do I auction it off or leave it for the landlord? If they decide to sue, could they try to get money from my husband as I have nothing? Thanks in advance

  • Thu, Sep 29 2016 1:24 PM In reply to

    Re: Closing an LLC and terminating a lease

    ARZB:
    I need help with my next step. Do we just close our doors and walk away in a month?

    No one on an internet message board is in any position to give you advice about this.  The only thing we can properly do is tell you about the law applicable to your situation.

    I strongly suggest you try and work something out with the landlord.  If you're unable to do so for whatever reason, you should consult with a local business attorney, including about the possibility of filing a personal bankruptcy.

  • Thu, Sep 29 2016 6:33 PM In reply to

    Re: Closing an LLC and terminating a lease

    ARZB:
    If they decide to sue, could they try to get money from my husband as I have nothing?

    Sorry, I don't know the answer to your question.  All I can say is that it sounds important enough to be worth paying a good local business attorney for a consultation.  Bring your lease and the personal guarantee to show the lawyer.

    ARZB:
    We have about $10000 in equiptment in place- do I auction it off or leave it for the landlord?

    I recommend selling the equipment yourself unless (1) its removal from the premises would greatly reduce the price anyone would pay for it and/or (2) you do decide to file personal bankruptcy.

  • Thu, Sep 29 2016 7:19 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,407

    Re: Closing an LLC and terminating a lease

    IF the business is losing money with no recovery in sight, why keep throwing good money after bad .....sort out your legal options to walk away or scuttle the ship ....not hard if you are essentially judgement proof ...but get some counsel if you co own other things with hubby......LL cannot get blood out of a stone   ( I've been a LL and had failing business tenants ) 



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