My dad owes 15000 to landlord. The city indicates the business license has expired and I can do an ownership change. If I sign, do I owe the 15,000 now? If I change the name of the business with me as owner, is it the same business? do I still owe the 15,000? This is in California....please advise
Yes. The obligation to pay the landlord the back rent probably has nothing to do with the business license. I think from the landlord's perspective, the business is the tenant, so if the business desired to continue operating at that same location, the business must pay the $15,000 in back rent. It really wouldn't matter if the name of the business changed with you as the owner.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
The debt belongs to your father's estate, and the landlord can sue his estate for the back rent.
But if you want to keep operating the business in the same location, you're going to have to bring the rent current.
As my colleague advised, the city business license has nothing to do with the rent. You can either renew the license with the same name or change the name, with you as the owner.
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