The legal business entity known as a Single Member Limited Liability Company (LLC) offers the owner pass-through taxation, limited liability protection, and a flexible management structure. A single person, known as the LLC’s only member, owns and manages a single-member LLC, as the name would imply.
One of the most crucial things for a single-member LLC owner to understand is how to sign contracts and legal paperwork on behalf of their business. To protect your personal assets and make sure your business is legally binding, you must sign on behalf of your LLC.
You must sign on behalf of your single-member LLC by using your name and the letters “LLC” or “Limited Liability Company.” If your name is John Smith and the name of your LLC is ABC Company, for instance, you should sign as “John Smith, ABC Company LLC.”
It’s crucial to remember that your personal finances and those of a single-member LLC should be kept separate. You ought to keep a distinct business bank account and utilize that account for all commercial dealings. This leads us to our following query.
You shouldn’t put LLC checks in your personal account, to be honest. Your personal funds and corporate finances should remain separate as a single-member LLC. The bank account of your LLC should be used for all business dealings, and any revenue from your company should be put there.
You run the risk of losing the limited liability protection provided by your LLC if you deposit checks from your LLC into your personal account. Your personal assets could be forfeited if the court views your personal and corporate funds as a single entity in the event of a legal dispute. What Do You Write When You Sign on Someone Else’s behalf?
When signing on someone else’s behalf, you should first use their name, then your own, then indicating the role you are signing in. To sign a document on behalf of John Smith, for instance, you would use the phrase “John Smith, by Jane Doe, authorized representative.”
By using this style, you can be sure that the person you are signing for is properly identified and that you are authorized to do so. Use the same approach when signing on behalf of a business, but substitute the business name for the person’s name. What Does PP Signature Mean, Exactly?
A per procurationem signature, commonly referred to as a PP signature, is one that is used to sign documents on behalf of another person. Typically, the letters “PP” are followed by the name of the person signing on their behalf. When is a Signature PP-able?
When you are signing anything for someone else, such as a contract or legal document, you have the option of PPing the signature. The PP signature shows that you are signing on someone else’s behalf and that you have that person’s consent to do so.
In conclusion, signing on behalf of your firm is a critical role for single-member LLC owners. Legal documents should be signed with your name and the phrase “LLC” or “Limited Liability Company.” Never deposit LLC checks into your personal account and keep your personal and corporate finances separate. When signing on someone else’s behalf, use their name, your name, and the capacity in which you are signing, followed by their name. Last but not least, the PP signature is used to show that someone is signing on someone else’s behalf and should only be used when allowed.
You would normally be the company’s “Owner” or “Managing Member” if you were a single-member LLC owner.