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jalmoreno · Jan 24, 2008, 05:16 PM

I opened a LLC retail business in Florida about 7 months ago. I signed a lease for 5 years. Soon, I won't be able to pay rent because the business is causing me loses. I have already spent all my savings in opening the business, and I don't have any money left to buy merchandise or pay for the rent. I subsidized my business with my saving account which is gone. There is also no money in the business account. I wonder if the landlord is going to evict me from the premise and keep the merchandise and assets that I have in the store? Can he do that? and if he will sue me trying to get my car which I bought with a loan, or if he can try to get my house which has a mortgage.
I would appreciate your reply.
Thank you.
Jesus.

Fr_Chuck · Jan 24, 2008, 06:11 PM

Ok, if you formed a corporation, and if you did it correct by keeping your business money and your private money separate, you have nothing to worry about, he can only get your business money, not your perosnal money, that is why you do a LLC *** unless you did something stupid like sign to be personally liable for the lease on the paper work.

So if you know you are going out of business, sell out at discounts and close, go out with dignity.

And if you did the business paper work properly, he can only get any business property and money that is left.

Now if you signed to be perosnally liable then he can come after everything.

excon · Jan 25, 2008, 06:00 AM

Hello Jesus:

He can evict you. He can't keep your stuff. He can't get your car. He MAY be able to get a lien on your house, but only after he sues you in court and wins. There's a good chance he won't do that. Cause if you have no money, it doesn't make a lot of sense to sue you.

excon

LisaB4657 · Jan 25, 2008, 06:50 AM

I agree with excon except for one thing. The landlord may be able to keep whatever stuff you leave in the space. It depends on whether your state law allows it and whether your lease gave the landlord the right of distraint. Read your lease carefully. Even better... get your stuff out of there. The right of distraint doesn't take effect until a default has been declared.