Hey, I was watching on Youtube and It was saying "if it goes bad and you can't get it better no mattee what you do you cant get the rents up you can't get the building turned aroud.. You walk away with 40k. At the end of the lease you're done. You didnt sign personally the lease was to your LLC and was an LLC set up just for this deal, you have no reason they have the recourse agaisnt you"
So my question here is, What's wrong with signing personally? What does the LLC do?
I'm not an attorney, but I'll ask rhetorical questions that will start you on the right line of thinking regarding this YouTube "legal advice": Who is going to sign for the LLC as its manager or agent? Can managers or agents of LLCs be legally liable for torts committed while they were acting in their capacity of managers or agents for the LLC?
@Eamonn McElroy can I sign myself?
Good luck finding a reputable lender that will loan to a brand new llc without a personal guarantee from someone with assets and experience.
I really am having a hard time figuring out what you're asking.
I can't respond as I'm not an attorney -- maybe one will chime in.
@Eamonn McElroy they guy on youtube said
"You didnt sign personally the lease was to your LLC and was an LLC set up just for this deal"
what did he mean?
Whoever this is, is talking about signing a lease for something using an LLC with no personal guarantee..... then walking away with no liability. We don't know what situation he's talking about.
Also, don't believe all the crap you see on YouTube. Any loan, lease, whatever you typically commit to with an LLC Will require a personal guarantee....unless the LLC has a substanatisl history of doing business, generates good profits and has substantial assets.
In other words, put this YouTube crap out of your mind.
In theory every thing works in the real world though you would need to find a seller that is as uneducated in how these things work as you are as the buyer..
@Fili Aguirre , the LLC, (if it is set up properly and maintained according to your state's rules), becomes its own "person" (legally its own entity). If the LLC owes money, the creditor can only foreclose on the assets of the LLC and not force you to sell your personal house, empty your personal bank account, or sell your personal stocks.
LLC's are a way of protecting significant financial assets that you might accumulate throughout your life. If you have few assets, than there is little or no need for an LLC. If you have a lot of assets, then putting them into various LLC's is a way to protect them from being seized or sold as a result of a lawsuit.
@Davido Davido That's what I wanted to read! Thank you David!
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