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2. Audrey and Danielle each contribute $50,000 to form a Limited Liability Company (LLC) which operates a shoe store in Jersey City, NJ. The LLC,
2. Audrey and Danielle each contribute $50,000 to form a Limited Liability Company (LLC) which operates a shoe store in Jersey City, NJ. The LLC, as a business, borrows $100,000 from Wells Fargo to use as operating capital. The LLC also signs a ten (10) year lease with its landlord, which lease is also personally guaranteed by Audrey and Danielle. a. Explain two advantages of operating this business as an LLC. b. After one year in business, the LLC suffers significant financial difficulty and defaults on the loan from Wells Fargo. Wells Fargo sues the LLC, Audrey and Danielle to recover the $100,000 that it loaned. i. Is the LLC liable for the $100,000 loan? Explain why or why not. i. Are Audrey and Daniella personally liable to Wells Fargo for the $100,000 loan? Explain why or why not. c. Due to its financial difficulties, the LLC also fails to make lease payments to its landlord. i. Is the LLC liable to its landlord for any damages associated with the default under the lease? ii. Are Audrey and Danielle personally liable to the landlord for any damages under the lease
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