• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Being sued as a sole proprietorship not an LLC

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

smokeybarnable

Junior Member
What is the name of your state?
Wisconsin

I had a small business that was organized as a Limited Liability Company. I have since dissolved this business and am paying off a few personal guarantees that I personally signed. I am being taken to small claims court by a company that leased a small office to my company. I sent the owner an email stating the business was dissolved and that I never signed a personal guarantee and he sent me a reply stating that my business was listed as a sole proprietorship on the lease. I informed them my business was an LLC before the lease was drawn up. My business never existed as a sole proprietorship and I never noticed they listed my business as such when I signed the lease. The amount of money isn't huge...but it's huge to me at this time. If I screwed up by not reading the lease close enough I will pay it...but I don't see how the lease was ever valid if one of the businesses on the lease never existed.

Thanks for any advice.
 


JETX

Senior Member
smokeybarnable said:
If I screwed up by not reading the lease close enough I will pay it...but I don't see how the lease was ever valid if one of the businesses on the lease never existed.

Thanks for any advice.
Simple solution. Ask them to provide you with a copy of the lease. If it shows you claimed d/b/a... then pay it.
If not, get prepared to argue your d/b/a versus LLC argument in court.
 

JETX

Senior Member
smokeybarnable said:
so in other words by my signing an incorrect lease it means my LLC magically turned into a sole proprietership?
Nope. It means that YOU are responsible for the lease you signed in whatever form you presented yourself to be.
 

JETX

Senior Member
smokeybarnable said:
I presented myself as an LLC and they changed me to a sole proprietor on the lease. Why is that legal?
Get your facts straight. Here you are claiming that they changed it.... and in your original post you said: "he sent me a reply stating that my business was listed as a sole proprietorship on the lease. I informed them my business was an LLC before the lease was drawn up. My business never existed as a sole proprietorship and I never noticed they listed my business as such when I signed the lease".

So, you seem to be claiming now that THEY had you as a d/b/a.... and you signed anyway.
So, my answer remains.....
"Simple solution. Ask them to provide you with a copy of the lease. If it shows you claimed d/b/a... then pay it.
If not, get prepared to argue your d/b/a versus LLC argument in court."
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top