When a partner resigns from an LLC, what can that partner do to remove liability from the lease?

min read
Opinions expressed by Entrepreneur contributors are their own.
Good luck. In this real estate market, landlords will want to keep as many deep pockets as they can find on the lease. The landlord is not obligated to release you from the lease, because your agreement to be responsible for the LLC's lease debt was not contingent on whether you remained with the company or not.

Your first step is to find an attorney in your area to advise you. Next, inform the landlord that you will be leaving the business and request to be removed from the personal guaranty. If the landlord says yes, you'll want the attorney to help draft the necessary amendments to the lease/guaranty.

If the landlord says no, you'll want the attorney to draft a document whereby the remaining partners agree to indemnify you if the business defaults on the lease and the landlord comes after you. Make sure you do this as part of a coordinated exit plan with your partners.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur