Have you ever wondered WHO should be signing contracts? What about HOW you sign contracts for your business? I get questions like this all the time: “Can one person sign on behalf of an partnership?” or “Do all owners need to sign every business contract?” “Do I sign my name or business name?” If you're a single-member Limited Liability Company (LLC) or an LLC with multiple owners, this blog post is for you.
Who needs to sign Your Contract?
If your business is an LLC or other form of corporation, then the business is considered a separate legal entity from you as the owner. That means owners will sign on behalf of the company. You don't need to sign a contract as “The Legal Paige, LLC” (for example), but rather you as the owner will signYOUR legal name as an authorized representative of the company: “Paige Griffith” with the title of your position below your signature (e.g. “Owner of The Legal Paige, LLC”. A good thing to note is this doesn’t mean you are personally responsible for debts or liabilities incurred under a contract. You are still afforded the protection of limited liability that an LLC offers when you are the owner signing your name on behalf of the business.
Thus, your signature line should look like this:
How to sign with Multiple Owners?
If your company has multiple LLC owners and you are contracting for something in the ordinary business activity of your company (aka something your business normally does), then any authorized representative can sign the contract on behalf of your company. When you are creating the LLC you will designate who is an authorized representative in your Articles of Organization (filing papers) and Operating Agreement. For example, if there are three owners in your LLC, each owner will have the ability to sign on behalf of the company. If you have business managers or other people within your company that are authorized to sign on behalf of the company, make sure you are documenting that within your Operating Agreement.
Thus, your signature line should look like this as a co-owner:
Overall, when thinking about who and how you sign a contract it will depend on how your business is formed and what roles each person has in the company. If you have multiple owners in your company you will want to make sure you make each person's roles and responsibilities clear when forming your company and registering with your state. If you are a single member/owner and are signing on behalf of your LLC, you will want to make that apparent when signing the contract.
Now that you know how to sign your contracts as an LLC owner, are you ready to take your next step in business and form an LLC?! We have a guide specific to each state! Check them out HERE!
THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. EVERY SITUATION IS DIFFERENT & IS FACT-SPECIFIC. A proper legal analysis is necessary based on your location and contract. Consult an attorney in your home state for advice regarding your contract or specific legal situation.