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Spent 4 years signing client contracts before realizing I never checked who actually owned the LLC
Found out last Tuesday when a client in Tampa tried to sue us and the LLC on the contract didn't exist anymore. She'd dissolved it and just kept signing under the old name. I always looked at the entity name on the signature line and never once pulled the state records. Now I check the Sunbiz page before every renewal, takes two minutes. Anyone else get burned by this or is it just me?
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lindaowens15d ago
Checking Sunbiz before renewals is smart but it only works if you catch it in time. From what I've seen, clients switch entities mid contract and never tell you, so pulling records every two minutes still leaves you flat footed. Getting a personal guaranty signed at the start saved my bacon more than any record check ever did.
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