So my business partner and I formed an LLC in Chicago last year. We lease a small warehouse space for our e-commerce thing. The lease is in the LLC's name, but only I signed it as 'member.' My partner never signed anything. Now the landlord is threatening to evict us for unpaid rent (we're behind two months, long story). Can the landlord come after me personally since I'm the only signer? Or does the LLC shield me because the lease says the tenant is the LLC? I'm kinda freaking out here. Anyone dealt with this?
LLC lease
My Chicago LLC has two owners but only one signed the lease
Did you sign as a member *of* the LLC or did you sign personally? Big difference. If the signature block says 'LoopLaundry77, Member of XYZ LLC' then usually it's the LLC on the hook, not you. But if you just scribbled your name with no title, landlord's llawyer might argue personal guarantee. Also, was there a personal guaranty clause buried in the the lease? If so, you're toast.
lol your partner didn't sign? smart partner. probably hiding in the shadows while you eat the eviction. classic.
Not a lawyer but I've been through this in IL. The LLC is the tenant, so the landlord's first remedy is against the LLC. Personal liability only comes in if you signed a personal guarantee or if the landlord can pierce the veil (like commingling funds). The fact that only one member signed the lease doesn't automatically make that member personally liable, but it does make you the point of contact. However—your partner might have a problem: if they never signed the lease, are they even bound by the LLC's obligations? That's a partnership dispute, not landlord-tenant.
Two months behind on rent, and you're worried about who signed? Maybe worry about paying. Landlord's gonna get his money either way.
This is why you never sign a commercial lease without your partner's signatre. The landlord probably thinks you're the sole owner now. Good luck explaining that in court.
Yeah, I signed as 'Member' with the LLC name. No personal guaranty that I recall, but I'll double-check. My partner is MIA—haven't heard from him in weeks. Honestly, I'm less worried about him and more about whether the landlord can garnish my wages.
If no personal guaranty, then the landlord can't garnish your personal wages without first suing you personally and winning. They'd have to sue the LLC and then try to collect from LLC assets. But if you commingled funds or didn't maintain the LLC formalities, they might try to pierce the veil. Keep your LLC docs clean.
Also, check the lease for a 'joint and several liability' clause. Sometimes even if only one member signs, the language can make all members liable. But that's rare. More likely you're okay personally, but the LLC's credit is screwed.
lol brass tacks brenda knows her stuff. but honestly, if the landlord sues, you might just want to negotiate a move-out and call it a day. two months rent is cheaper than a legal battle.