Ostroff, Fair and Company
*Ostroff, Fair and Company>>>Renting & Real Estate

Personal guarantee of a business lease?


my wife bought a business in her name only.
the leaseing company wont give her a lease agreaement on the business it must be a personal guarantee and he said i have to be on the lease also what ramifications can this have?
the question being could they sue us and make us sell our house if booth our names are on it

Yes. She should open a LLC first
They could sue you but depending on the state you might not lose your house. Certain states have homesteading clauses which protect your house from these types of situations.

I agree, get an LLC. Still they will continue to require personal guarantees until your companies builds its credit.
I have an LLC and loans with personal guarantees. They are required especially if you are small.
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