You formed your business entity for the protection of you and your family. Don't blow it by signing business contracts in your individual capacity!
Business entities are important for managing the risks of running a business. But many small business owners simply sign their individual names to business contracts, instead of signing on behalf of their business entity. This can cause problems down the road.
EXAMPLE SIGNATURE BLOCK:
XYZ, LLC
By: [signature of John Smith]
John Smith
Its: Manager [or whatever agency role John Smith holds with XYZ, LLC]
LINKS:
Firm Website: www.keith.law
Calendly page to schedule a call
TIMESTAMPS:
00:00 — Topic
00:33 — Why use a business entity, generally, and what is it's purpose?
01:08 — What I plan to talk about in this episode, and why it matters
02:39 — How a business contract should be signed
04:12 — How a business contract should be signed (really this time)
05:22 — Authority to sign for the business, and contexts in which it might be needed in writing
06:30 — Review of how the business contract should be signed
07:03 — Discussion of "risk management" - there are no guarantees
07:53 — Areas of law discussed: corporations law, agency law, and negotiable instruments statute
09:30 — Texas Business & Commerce Code 3.402 is complicated, but instructive
10:10 — Personal guarantees discussed, compared, and contrasted
11:48 — Discussion of trying to remove an individual as a defendant in a lawsuit in which a business contract was signed incorrectly
12:50 — Summarizing the episode
13:20 — Where to find more episodes of the Keith Law, PLLC Podcast
13:45 — Where to find the related blog post and how to submit questions
14:20 — Outro
Disclaimer: This audio and related video and blog post are for informational purposes only and should not be misinterpreted as legal or other professional advice. If you have a legal question, you should consult with an attorney in your jurisdiction. Thank you for tuning in to Keith Law, PLLC.
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