The answer to this question really depends on the specific circumstances.

One reason businesses create LLC entities is to avoid member personal liability for business contract obligations by having the LLC sign contracts. However, there are possible situations where a landlord can sue a member of an llc lessor such as situations where the landlord has a personal claim pursuant to the terms of the contract, a member personally guarantees the contract, the landlord seeks to “pierce the LLC veil” or in situations where the landlord feels it has a legal claim against the member individually outside of the lease contract.

If you are just starting an LLC, we recommend you read our Six Step LLC Formula eBook to help reduce the likelihood of personal liability and you should ensure the lease contract obligations only apply to the LLC entity. A lease contract is one transaction where it makes sense to hire a lawyer because they generally are a longer term contract and a relatively significant obligation.

If your LLC is already in an arrangement and is facing issue with the landlord, you should seek the advice of a lawyer to determine the possibility or likelihood of any potential member claims based on your situation. As noted, the answer really depends on specific facts and circumstances such as the specific provisions of the contract, whether the LLC member has done anything outside of the contract, and how the LLC has been operated and maintained.

The answer to this question really depends on the specific circumstances.

One reason businesses create LLC entities is to avoid member personal liability for business contract obligations by having the LLC sign contracts. However, there are possible situations where a landlord can sue a member of an llc lessor such as situations where the landlord has a personal claim pursuant to the terms of the contract, a member personally guarantees the contract, the landlord seeks to “pierce the LLC veil” or in situations where the landlord feels it has a legal claim against the member individually outside of the lease contract.

If you are just starting an LLC, we recommend you read our Six Step LLC Formula eBook to help reduce the likelihood of personal liability and you should ensure the lease contract obligations only apply to the LLC entity. A lease contract is one transaction where it makes sense to hire a lawyer because they generally are a longer term contract and a relatively significant obligation.

If your LLC is already in an arrangement and is facing issue with the landlord, you should seek the advice of a lawyer to determine the possibility or likelihood of any potential member claims based on your situation. As noted, the answer really depends on specific facts and circumstances such as the specific provisions of the contract, whether the LLC member has done anything outside of the contract, and how the LLC has been operated and maintained.

You can minimize risk of personal member liability by following certain rules when conducting business and maintaining sufficient LLC governance formalities including executing proper LLC governance forms.