QUESTION
If i sign a 2 year lease on a building for my new company and it goes under in a year, am i liable for the remaining year on the lease?
Asked on Mar 22nd, 2017 on Bankruptcy - Nevada
More details to this question:
I am starting a new company and am looking for a space to lease to work out of, the place I am looking at wants me to sign a 2-5 year lease with them, but what if my company fails in the first year, am I still liable to lease the space for the remaining year even though my business is no more?
1 ANSWER
2 Awards
If you personally guaranty the lease then yes, you would still be liable for the lease if your company was insolvent. The key is to sign the lease only on behalf of the company. However, it is difficult for a new company to incur obligations without the guaranty of its principals since it has little credit history. It is worth trying to negotiate.
Answered on Mar 23rd, 2017 at 8:38 AM