It makes you personally responsible for the lease obligations — even a business lease — so your personal assets can be pursued if the tenant (often your company) defaults.
A personal guarantee on a lease means you’re personally on the hook, separate from any business entity. If you signed a commercial lease through an LLC but added a personal guarantee, the landlord can come after your personal assets — not just the company’s — if rent goes unpaid. Guarantees can be unlimited or capped, and some spring into effect only under certain conditions. Understanding the scope before signing is critical, because it can expose your home and savings.
Sometimes — landlords may accept a capped guarantee, a limited-term ("good guy") guarantee, or a larger deposit instead. It’s worth asking before signing.
No — a personal guarantee specifically bypasses the LLC’s liability shield for that obligation, exposing your personal assets.
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