Commercial lease - 1st location - New LLC

Miami, Florida
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Commercial lease - 1st location - New LLC

Katherine Fricer
Member since 2026 · 4 posts · 2 votes

Hi! I’m working with a client who is currently applying for an E-2 visa. We’re negotiating with a landlord who has requested financial documents showing that my client can financially support the new business. Since his LLC is newly established, he doesn’t have any business financial records yet. Do you have any suggestions on what documents we could provide instead?

The landlord is requesting a higher rental rate and a nine-month security deposit because this will be my client’s first location. The listing agent and I are trying to negotiate better terms for the tenant, but we’re unsure which financial documents to provide since this is a new business.

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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
1mo

Start with a 9 month deposit, but include a burn down or apply partial deposit towards rental payments. I think after 3 years of payments, deposit should be down to 1-2 months. I went to UM and used to practice in Miami, very common!

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  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 522 posts · 186 votes
    1mo
    Quote from @Katherine Fricer:

    Hi! I'm working with a client who is currently applying for an E-2 visa. We're negotiating with a landlord who has requested financial documents showing that my client can financially support the new business. Since his LLC is newly established, he doesn't have any business financial records yet. Do you have any suggestions on what documents we could provide instead?

    The landlord is requesting a higher rental rate and a nine-month security deposit because this will be my client’s first location. The listing agent and I are trying to negotiate better terms for the tenant, but we’re unsure which financial documents to provide since this is a new business.

    @Katherine Fricer, I've worked with new businesses in this exact situation where the LLC itself has no financial history yet because it was just formed. In those cases, I usually look beyond the company and focus on what can show the owner's ability to support the business. That may include personal bank statements, proof of available funds, personal financial statements, prior tax returns, a business plan with projected income and expenses, or other documents showing where the startup capital is coming from.

    I would also look at the nine-month security deposit as part of the negotiation, not necessarily something the tenant has to accept as is. I’ve seen landlords become more flexible when they are given stronger proof of funds or another form of security. Sometimes the better conversation is about what would make the landlord comfortable enough to lower the deposit or improve the rent terms. Since there is also an E-2 application involved, I would make sure the lease strategy is coordinated with the client’s immigration attorney before anything is finalized.

    I like that you are trying to solve this before simply accepting very heavy lease terms for a new business, and I’d be glad to stay connected. I’m licensed in Maryland, so anything specific to the Florida lease should still be reviewed by Florida counsel.

    [email protected]240-266-0291
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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 867 votes
    1mo

    If the LLC is brand new, I'd focus on showing the landlord the financial strength behind the business. Personal bank statements, proof of funds, tax returns, or a personal financial statement could help. If your client has the cash available, that may go a long way toward making the landlord more comfortable. I'd also push back on the nine-month security deposit. The landlord is taking more risk because it's a new business, but there may be other ways to reduce that risk, like a personal guarantee or a smaller deposit combined with proof of funds. I'd try to find a structure that gives the landlord enough comfort without tying up nine months of your client's cash.

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    1mo

    Would generally think you would be trying to show documents and records indicating the TT's operational history and ability to run that type of business successfully, regardless if this LLC has records or not I'd think showing an ops history and generally "proving" their ability to succeed is what's needed. I'd assume the LL would also require a personal guarantee in this instance which is pretty common and customary in my world.

    [email protected]614-362-2231
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  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    1mo

    Start with a 9 month deposit, but include a burn down or apply partial deposit towards rental payments. I think after 3 years of payments, deposit should be down to 1-2 months. I went to UM and used to practice in Miami, very common!

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  • Steven McPherson
    Real Estate Agent · Fort Worth, TX · Member since 2022 · 25 posts · 16 votes
    1mo

    I don't understand this part. The listing agent, who is supposed to represent the Landlord, is negotiating better terms for your client? If he is representing the Landlord, can he just ask what specific documents his client wants to see?

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    • Don KonipolBusiness Member
      Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
      1mo

      Yeah, I think the OP is somewhat confused. The listing agent is legally obligated to act in his client’s best interests. These type only scenario I can imagine where he’s trying to Lower the amount his client receives is if (1) there is no other tenant on the horizon and (2) his client receives”needs” this deal and the prospective tenant won’t sign up unless the security deposit amount is reduced.

      I’d hate to be the listing agent that talks the landlord into forgoing the proposed security deposit and the tenant then defaults. Potential lawsuit, liability, damage to reputation, etc.

      That being said - newly formed tenant entity, foreign national- unless strong personal financials can be verified with assets located in U.S. i’d stick hard to the 9 month SD if I were the landlord.   Sometimes an agent representing a client needs to point out the reality to the client.  

      Private Mortgage Financing Partners, LLC
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    4w

    Katherine, for a brand-new LLC with no operating history, I'd build the landlord a financial package around the owner rather than the business.

    I'd usually include personal bank statements, brokerage or investment statements, a personal financial statement, proof of funds already committed to the business, the business plan, projected P&L/cash flow, and documentation showing how much capital is available to support the first year of operations. If the client has strong personal income or assets, that can help offset the fact that the LLC itself has no history yet.

    You could also ask whether the landlord would accept a personal guaranty or letter of credit instead of nine months of security deposit. Tying up that much cash before the business even opens can put a lot of pressure on working capital.

    Since this is tied to an E-2 application, I’d also coordinate the lease terms with the immigration attorney before signing anything final. You want the lease, investment commitment, and business plan to tell the same story rather than solving the landlord issue in a way that creates a problem for the visa filing.

    From the tax side, I'd make sure the new LLC's capitalization, lease payments, build-out costs, deposits, and pre-opening expenses are tracked separately from day one. The entity structure matters too, especially once you know who will own the business and how it will be taxed.

    I’m from Florida as well, so I know how quickly commercial lease deposits and build-out costs can consume cash before the business even opens.

    Feel free to DM me. I’d be happy to send over a couple resources that may help with the entity and tax side.

    [email protected]941-914-7779
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    TaxMD® | Tax Planning Software
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  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 273 posts · 92 votes
    16h

    Barrett, I like the way you’re thinking about using the residential development to help fund the golf course instead of financing everything upfront. With a project this size, having the right funding structure and partners could make a big difference.

    I specialize in business funding, including business loans, business lines of credit, SBA financing, and revenue-based funding for businesses with established revenue.

    I also have access to shelf corporations, which are companies that have already been established and have age on them. Depending on how much funding you’re looking for, the financing program, and how the business is structured, there may be opportunities where a strong personal credit profile is one of the main qualifications, without needing substantial existing business revenue. Of course, the corporation’s age alone doesn’t guarantee approval, and lenders may still require additional documentation.

    For a larger development like yours, combining different financing options with investment partners might be worth exploring.

    I’m curious, have you already secured the 272 acres, or are you still in the planning stages? And do you have an estimated amount of capital you’ll need to get the first phase started?

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