how to contract with an llc [From Experts]


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Last updated : Sept 21, 2022
Written by : Makeda Stuenkel
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how to contract with an llc


Comment by Nicky Keller

hey everyone so today is just a quick tip for business owners if you have an llc a limited liability company for your business you want to make sure that you're signing contracts as a member of your llc and not just yourself personally so for example you wouldn't want to sign mary smith you would want to sign mary smith as managing member of smith consulting llc or whatever the name of your llc is this is because you want to bind your business in business contracts not yourself personally there's no point in setting up an llc to protect your personal assets if that you then bind yourself personally in every business contract that you sign so be sure that if you have a business if you have an llc that you're signing your business contracts as a member of your llc and not yourself personally


Thanks for your comment Nicky Keller, have a nice day.
- Makeda Stuenkel, Staff Member


Comment by sudsy0

do i sign documents as myself or the llc great question let's discuss first disclaimer i am not your attorney i am not your cpa this is just general education that you can find anywhere i just like that you're here with me so let's talk about a business transaction first so in order for a contract or a document or an agreement they all mean the same thing to occur we need to have a relationship that's developing so in this case we have tiffany is going to be hiring abc tile to do some tile work for her now tiffany might have a business of her own but in this case we are going to use tiffany as just an individual so tiffany's hiring abc tile but hal is the sole owner of abc tile he is the sole manager member of abc tile if you want to learn more about what a manager is a manager is an operator a member is an owner if you want to learn more about that we have a great video that i recommend you watch that goes into more detail about that check it out but in this case we've got tiffany and abc tile entering into an agreement together that abc tile is going to do tiffany's tile work for a certain sum of money and then there are going to be different things in here that say it's going to take a certain amount of time that any extra work is either handled by hal or handled by tiffany all these different kind of things that that might go wrong and to agree ahead of time of what happens if and when these things go wrong that's essentially what a contract agreement document that people sign discusses and that's why they can be very long sometimes is that the longer it is the more bases they're covering so in this contract um let's you know let's zoom in so so tiffany in in a contract it's between two people so we're gonna have tiffany sign and we're gonna have hal sign so how does that actually happen let's zoom in all right so let's say that you know this is where tiffany signs and she just you know she signs here i'll go ahead and make it look like she actually signed this is tiffany's signature does hal sign how is the only person in the business he is the only he's the sole manager sole member of the business there's nobody else it's just him it's abc tile llc and hal is the single soul person underneath it does he just sign as hal i mean he can but again this is an example of mistakes people make and act as a sole proprietor when in reality they need to be acting as an llc just because you have an llc doesn't mean you are protected you have to do business you have to do financial transactions through the llc you have to do these agreements through the llc or you're acting as a sole proprietor as if you have an llc and a sole proprietorship but you're only working through the sole proprietorship so you need to be working through the llc if that's how you're doing business so hal doesn't just sign like this the the way to do it properly is for how to put a signature but then also make sure it says hal manager of a b c tile llc so if we get into a situation where someone just makes a signature line and says you know this is hal we need to make sure that because this can happen often too you might get a contract that has your name already set here i'm gonna clean this up just a little bit so we might have an example where we might have an example where the name is already put in here for you underneath so in this block it's going to have a signature but it's also going to have you know who is signing it ahead of time it's going to be printed out most likely so hal's name is going to be there and tiffany's name is going to be here it's going to be printed out ahead of time and that's so tiffany knows okay this is where i sign and hell knows is where i sign if it comes to where a contract is delivered to you where your personal name is written like this the best way to handle this is to write just simply on the document before you sign it manager of abc tile llc and then sign it whoa and then sign it hell what this does is it removes hal is the person from the individual signing and what it does is it makes hal the representative of abc tile llc and the signatory so this is the way to do it always make sure to always make sure to the representative of the llc and not the individual person because then you're just a sole proprietor you're not a representative of the company and make sure if it's not if it's printed on here ahead of time like this that you just add this before you do your little john hancock signature here okay and that is how to sign contracts agreements and documents as the sole manager member of an llc now again if there are multiple people in the business same concept same concept happens there there can be multiple managers in an llc and any one of those managers can sign as a representative of the company so that's it if you got value out of this video please like and subscribe for more information you can always comment below and ask a question for a future video or if you need us to dive a little deeper into some nuances we might have missed check that out down below but you can also find us at betterlegal.com if you need us to help with any business formation services also you can find us on any major social network as better legal or some variation of better legal but look for a little purple logo and thanks for watching it was great spending time with you have a good day


Thanks sudsy0 your participation is very much appreciated
- Makeda Stuenkel


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