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Pillars of Strength: Formatting a corporate signature to protect the “corporate veil.”

May 23, 2014

Two other posts (here and here) address techniques useful in protecting personal assets from the creditors of a corporate entity (I.e., limited liability company or corporation).  This post addresses specifically how to sign documents to aid in that effort to avoid “piercing the corporate veil.”

The key is to sign documents not in your personal name, but in the name of the corporation, to avoid essentially personally signing for or guaranteeing corporate debt.  In other words, Courts are going to ask “who is a party to this contract?” and how you sign will be indicative of your intention of who is standing behind the contractual obligation.

Thus, the proper way to sign all documents for the corporation or limited liability company is with a corporate (not individual) signature as follows:

XYZ, LLC,

an  Ohio limited liability company

By:____/signature/___________________

Its: ____/title of signer/_______________

 

Read below two related topics: