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What is a personal guarantee and is it a good idea? I get asked this question a lot by clients that want to know what exactly is a personal guarantee? And usually well see that in business contexts where a business owner goes in to lease a property or get a small business loan lets say, and they say, Oh, you just have to sign this personal guarantee. And most people dont even really understand exactly what that means, but its usually a lot of times required by a landlord, by the tenant. Lets say the tenant is your business and you go to rent an office and the landlord says, Okay, youre a corporation and a California corporation is how you have have your business set up. Well, theyre going to say You need to sign a personal guarantee because your corporation was set up only two years ago and doesnt really have a lot of assets or a lot of operating history. So, I want to ensure that Im going to get paid on the lease. So, theyll say Just sign this persona
