closing business in Florida?

Question

I am closing my business in Florida and it is a "S" corp. I have 5 years on my comercial lease left. How do I go about it. Do I disolve the corp or do I file corp bankruptcy. I am not sure if the landlord will try to sue me personally or if he is able to. Should I send the landlord a certified lettter stating we are closing? Any advice would be great. thanks

tried to sell it and didn't work. Need to move to a different state by next month. What should I do with the corporation? I really dont have any other option but to just close. I just want to make it easier on myself. Leagally how do I make it as painless as possible. I dont have the money to pay out the lease.

How can I tell in the launguage of the lease if I am personally responsible?

Answer 1

Most likely you are personally liable on the lease. Most landlords will make an S Corp owner sign personally. If you are not, then the corporation is solely liable and if the corporation has no assets it cannot pay. You need to check your lease. If you are personally liable, you should try to find a suitable tenant to rent the premises. This would get you off the hook for future rents. If you cannot find a tenant you may need to file a bankruptcy. A judgment on your credit will be as bad as a bankruptcy so it really won't hurt you any more. You should file before you leave Florida as Florida allows you to keep more assets than most other states. Also, you will need to reside in a new state for 180 days before you are able to file.

Answer 2

Read your lease agreement. Chances are you are on the hook for the remainder of the lease.
Don't file for bankruptcy. It is a black mark that will follow you for seven years.
If you cannot get out of the lease or cannot buy out. Look for a tenant to take over the lease. You can get yourself off the hook at no cost to you.