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How Do I Legally Sign A Contract on Behalf of My Business?
Most small business owners I know are 1. Badass and 2. Constantly running between one project and another. There are always SO many things to be done and at times “small” tasks (like making sure contracts are properly sent and signed) can be tedious.
The catch? Sometimes the seemingly smallest tasks aren’t so small when they can have BIG legal consequences. If your business is a limited liability company (LLC) or has multiple owners, this podcast episode is for you.
A popular question in The Legal Paige Community is “Can one person sign on behalf of an LLC?” or “Do all owners need to sign every business contract?” In this podcast episode, I am answering these questions and giving you my legal take on how and who should be signing contracts on behalf of your business.
YOUR BUSINESS FORMATION MATTERS
When you’re signing a contract, your business formation matters. Unlike sole proprietors who are their business (and can sign as their business) an LLC 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 sign YOUR legal name as an authorized representative of the company.
So for example I would sign it as “Paige Griffith” with the title of your position below your signature, so again just as an example, for myself I would then add in the title, “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. And knowing how to properly sign your contract as an LLC is important for keeping that protection bubble of your LLC intact.
MORE FROM THIS EPISODE:
Press play on Episode 157 and learn more about how to sign a contract if your business has multiple owners, what sole proprietors need to think about when it comes to signing contracts, and my overarching legal take on the matter! If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.