Personal v Business Signature in Contracts
November 14, 2023
Personal v business signature in contracts LLC owners risk eliminating the primary reason – limited liability – for using this entity structure by signing legal documents incorrectly. You must make it clear that you sign documents and agreements for the company, not yourself personally.
Contract language should clearly specify that the agreement is between one party and the LLC, not you personally. Failing to do so (i.e., just signing their name) can invite personal liability into business matters. For instance, if Jane Smith signs on behalf of an LLC, she may want to include language indicating that she is signing as a representative of the LLC and her relationship to the company.
Her signature on behalf of the LLC might look something like this:
Company X, LLC
By: [Jane Smith would add her signature here]
Jane Smith, President [or simply " Managing Member"] It's also important to thoroughly read any document that you sign on behalf of the LLC because there might be language in the document that could open you up to personal liability, regardless of how you signed it.
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