What if we recently started a LLC after purchasing a few commercial properties?
If we recently filed LLC incorporation paperwork with the state after buying commercial property, should we re-sign paperwork even though the members are the same people listed on the lease to purchase contracts and agreements?
Additional information
If the property is lease to own, how would this effect this? It's a long story with land restrictions and they wont have the deed for a few years. Should we wait to re-do paperwork :?
Have you heard of a land lease agreement pending payment or other limitations and dates after developement?
Attorney answers (2)
Pamela Koslyn
Reputation Level 20
Answered about 2 years ago.
Business Attorney in Los Angeles, CA.
An LLC is not a corporation. If you took title to the commerical properties as individuals, you'll want the property held by the LLC, and you'll need to deed the properties over to the entity. There's no point in having an LLC and not using it to run this real estate business, and you're best off having an LLC for each property.
You also need an LLC Operating Agreement for each LLC if there are several members. You need to see a business lawyer.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
James Joseph Falcone
Reputation Level 11
Answered about 2 years ago.
Business Attorney in Sacramento, CA.
Sounds like you don’t actually own the property yet, but have lease with option to buy. You may need the cooperation of the Lessor/Seller. You could assign the lease option to the LLC, but it may have provision that it is not assignable. You could ask the Lessor/Seller if they would agree to the assignment, explaining that you are both the lessees and members of the LLC. The Lessor/Seller may agree on condition that you sign personal guarantees of the lease, which is overkill as you signed the lease as individuals, and so remain liable, but this should not be an obstacle.
You said they wont have the deed for a few years. How can they lease you the property? Do they have a lease, and you are a subtenant? That is the only way I can think of, but their lease must also include an option. You really may need to see an attorney to determine where exactly you stand, and how to address the LLC, for which you are paying the state $800/yr whether you use it or not.
Disclaimer
The content of this comment contains general information based on California law and is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You require specific legal advice and should not rely on general information provided in response to a question posted on Avvo. You should consult with an attorney to discuss the matter and for any specific legal advice.
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