Does Your LLC Need a Written Lease?
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Does Your LLC Need a Written Lease?

Hi everyone Taylor Mathis here, the Keytlaw
girl, marketing director, and legal assistant at KEYTLaw, today I’m going help you guys
figure out if your LLC needs a real estate lease or not. And don’t forget to like and comment on
this video if you found it helpful, and be sure to subscribe to our channel to check
out our more videos! We upload new content every week to assist
with your legal needs. So, if your LLC is going to be a landlord
or a tenant of Arizona real estate, it needs to sign a written lease. If the lease is between related parties, it
is particularly important that the parties sign a written lease because the lack of a
written lease would be an adverse fact if somebody filed a lawsuit to pierce the veil
and hold the member of the company liable for a company debt. If the lease is not between related parties
a written lease is also very important to prove the terms and conditions of the lease
if either party sues for breach of the lease or to collect unpaid rent. Take care that your lease is appropriate for
the type of property and that it is written specially to comply with Arizona landlord
tenant law. Don’t use a residential lease for commercial
property and Don’t use a single family residential lease for premises in a multi-unit property. Whenever you are paying or receiving a lot
of money for rent you should have an experienced real estate attorney who represents your interests
review the lease. If you or your LLC owns real estate that is
leased or will be leased to your LLC, you must have the landlord and tenant enter into
a written lease for the premises. Without a written lease and a resolution of
the members approving the lease the IRS could re-characterize the rent payments as distributions
and prevent the LLC from deducting the rent payments. So that kind of outlines the basics for your
LLC needing a real estate lease. If you need a lease reviewed or prepared hire
KEYTLaw to do so! The link for us to create a lease is below. Now hit that little like thumb and comment
with any questions you guys might have! And of course, subscribe to our channel for
more videos like this one!

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