What is the name of your state? PA
3 of us formed an LLC 2 years ago. Rented a building signing a 5 year lease. Got the necessary township permits- having gone to the twp officials from day 1- to move in and rennovate, which we did- even passing all inspections. This cost us about $24K. The landlord gave us a break on the rent for about 6 months to help make up what we had to put into remodeling. WHen we were ready to open, about 3 months after getting the permits- the township denied an occupancy permit over an interpretation of 'land development'. We spent months arguing back and forth- ended up hiring an atty, who charged out the whazoo and didnt get us very far. And now the landlord has abandoned us since the atty had advised us not to pay rent for the last 6 months. We decided to give up after spending a total of about $60K on remodeling, legal and engineers fees, rent, utilities, insurances. We were not able to open to make any money and our LLC bank account has about $1K left in it. We owe back rent of about 6 months (At $1500/month), have 3 years left on the lease, we have paid an engineering firm, but still owe them about $700, AND we owe the attorneys about $8K (we already paid them over $7K over the last 6 months, previously giving us an estimate that their fees could cost from $8-12K for this battle- which we have long surpassed!). We dont owe any credit cards or other people, as we paid our bills from the money we partners pooled together- but now the pool is almost dry. We dont really have any assets- we only needed a building to operate from, which is where we stuck our money. We are ready to give up and walk away from this venture, and dont know what to do next. Do we have to formally file bankruptcy- and what kind? Do we need a lawyer (oh dread) to do this too? We have no idea what our next move should be and are feeling quite defeated. Any help appreciated.
3 of us formed an LLC 2 years ago. Rented a building signing a 5 year lease. Got the necessary township permits- having gone to the twp officials from day 1- to move in and rennovate, which we did- even passing all inspections. This cost us about $24K. The landlord gave us a break on the rent for about 6 months to help make up what we had to put into remodeling. WHen we were ready to open, about 3 months after getting the permits- the township denied an occupancy permit over an interpretation of 'land development'. We spent months arguing back and forth- ended up hiring an atty, who charged out the whazoo and didnt get us very far. And now the landlord has abandoned us since the atty had advised us not to pay rent for the last 6 months. We decided to give up after spending a total of about $60K on remodeling, legal and engineers fees, rent, utilities, insurances. We were not able to open to make any money and our LLC bank account has about $1K left in it. We owe back rent of about 6 months (At $1500/month), have 3 years left on the lease, we have paid an engineering firm, but still owe them about $700, AND we owe the attorneys about $8K (we already paid them over $7K over the last 6 months, previously giving us an estimate that their fees could cost from $8-12K for this battle- which we have long surpassed!). We dont owe any credit cards or other people, as we paid our bills from the money we partners pooled together- but now the pool is almost dry. We dont really have any assets- we only needed a building to operate from, which is where we stuck our money. We are ready to give up and walk away from this venture, and dont know what to do next. Do we have to formally file bankruptcy- and what kind? Do we need a lawyer (oh dread) to do this too? We have no idea what our next move should be and are feeling quite defeated. Any help appreciated.