Proper Signing of a Contract in the Business Name

It is common for business owners not to understand the importance of signing the contract in the name of the business.  Failing to sign a business contract in the name of the business most likely means that the signor of the contract is personally liable for that contract as the contract was signed personally rather than by the business.

It is important that you are properly signing a business contract.  The signature block should state the following:

NAME OF BUSINESS (as registered with the Secretary of State)

By: _____________________ (signature)                                                                                       Its: _____________________ (title – such as owner, CEO, member, etc.)

For example:

SAM’S AUTO REPAIR, INC.

By:  Sam Smith                                                                                                                                Its: CEO

Another example:

CREATIVE THINGS, LLC

By:  Sam Smith                                                                                                                                  Its: Chief Manager

Spangler and de Stefano, PLLP assists business owners with contracts and leases. Working with experienced business attorneys prior to entering into any contract or lease prevents unintended or inadvertent consequences.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.