Ok, so here`s the way it works. First, the most important thing you have to understand about an LLC or a corporation is that in order to protect yourself and your assets (which is why you bothered registering for one in the first place), you need to treat your LLC as if it was a separate person. I tell my clients all the time to call the company "Fred" if it helps you to think about it that way. Fred has his own bank accounts, his own tax id (or SS#), etc.
So the problem is that you, Bob, have signed a contract with Subway and with your landlord. Fred wants to take over all the responsibilities of those contracts. What would you do if Fred was really a person? You`d contract with Fred to take over all assets and liabilities of your contracts. What does that really mean?
You sign it as an individual and Fred contracts with you to assume the lease and franchise contract and all assets, profits and liabilities arising therefrom and allows Fred to run the business. It indemnifies you from any liability.
Hope that helps....
Let me know if you have other questions.
Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post. No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation. Any advice given here is not intended to creat an attorney-client relationship in any way.
Deena Burgess, Esq.
DeenaEsq7/11/2008 8:44 AM
Deena B. Burgess, Esq.
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