New Business start-up - Liability Question

I am opening a retail business in Upland California.
I would like to form an LLC but have already executed the lease as an individual. If I go ahead and form the LLC now, and get insurance as the LLC, would I be liable (for example) an injury on the premisis because I personally am on the lease. Or would it be covered by the LLC because it is the LLC that is doing business in the space and the LLC who carries the insurance. Is it necessary for me to have the lease changed in the LLCs name?

brianheyman32 said:

I am opening a retail business in Upland California.
I would like to form an LLC but have already executed the lease as an individual. If I go ahead and form the LLC now, and get insurance as the LLC, would I be liable (for example) an injury on the premisis because I personally am on the lease. Or would it be covered by the LLC because it is the LLC that is doing business in the space and the LLC who carries the insurance. Is it necessary for me to have the lease changed in the LLCs name?

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**A: the LLC would not protect you from liability since you are the indivdual lease guarantor.

And what did your LLC's insurance carrier tell you when posed with this same question?

The Insurance provider told me to seek a lawyers advice.
They did not know. It looks like I may have to start up as a sole proprietor and change to LLC later.

mykoleary said:

And what did your LLC's insurance carrier tell you when posed with this same question?

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**A: good question Mike. Sounds sort of familiar.

HomeGuru said:

**A: good question Mike. Sounds sort of familiar.

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Yeah, I've heard it somewhere around here before...

funny man.