When launching a new company, it’s crucial to think about how you’ll manage financial transactions. Whether or not to put your name on LLC checks is a frequent concern. The answer to this query depends on a number of variables, including your personal preferences and the design of your LLC.
The distinction between an authorized member and a manager in an LLC must first be understood. A person who has the power to act in the LLC’s name and make decisions on its management is known as an authorized member. On the other hand, a manager is a person who is chosen by the members to oversee the LLC’s daily activities. You might be a manager in addition to being an authorized member, depending on the structure of your LLC.
Keeping this in mind, it’s crucial to sign documents with your full name and title. This makes sure that others recognize your authority and clarifies your position inside the organization. It’s possible that you’re referred to as a “Managing Member” or “Manager.”
SOC signatory also denotes that the individual signing the document has been given permission to do so by the business. The term “SOC” stands for “Service Organization Control,” and it refers to a set of guidelines for controlling and protecting data. If your LLC has selected you as the SOC signatory, it means that you are the one who will sign any documents pertaining to the company’s adherence to these requirements.
Depending on your position inside the organization when you start your own business, your title may change. CEO, President, Owner, Managing Member, or Manager are a few examples of frequent titles. It is critical to pick a title that appropriately describes your role and level of power inside the organization. So, should you sign LLC checks with your name? In the end, the choice is yours. To make it simpler to deposit checks into personal accounts, some business owners prefer to sign their names on checks. To maintain the separation between personal and corporate funds, it is generally advised to use the name of the LLC on all financial transactions. If you decide to sign checks, be careful to specify your position and level of power within the organization by including your title.