Q: Can I be sued as an indiviual/dba if I'm now a 501c3 corp? I signed the lease as me/dba.
I rent a commercial space and am being sued by my landlord. He first issued an unlawful detainer, then cancelled it and is suing me for breach of contract, nuisance and injunctive relief. I signed the lease before I was awarded the 501c3 status.
A:
If you signed in your individual capacity, you are obligated on the lease as an individual. Tax exempt status with the IRS confers no shield from liability. But in order to be recognized by IRS as ax exempt, your organization cannot be a "dba". It has to be a nonprofit corporation or certain other type of allowable entity. If, at some point after you signed the lease, you formed a nonprofit corporation, it would not make the corporation liable on the lease nor would it change your individual liability under the lease.
If you have a defense under the lease, you'll need to get ready to assert it. Contact an experienced real estate lawyer. Man offer free initial consultations. Good luck to you.
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