Hey ,

I see business owners sign contracts with just their name every single day. No title, no company, just “John Smith” at the bottom of a business contract.

Then when something goes wrong, they are shocked to learn that they are personally liable for everything because they signed as an individual, not as their business entity. That LLC protection they paid for?
GONE! Their personal assets? NOW AT RISK!

ONE WRONG SIGNATURE JUST COST THEM EVERYTHING!

⚠️ What’s Non-Compliant

Signing business documents as yourself instead of on behalf of your entity detsroys your liability protection and creates personal liability.

Wrong ways that I see people sign:

• Just writing "Sarah Johnson" on business contracts

• Signing "Sarah Johnson, Owner" (you're still personally liable)

• Using "Sarah Johnson DBA Pretty Designs" (DBA doesn't protect you)

• Signing personal name first, then adding LLC name as an afterthought

When you sign incorrectly, courts treat YOU as the party to the contract, not your business entity.

✅ Compliance Tip

Always sign on behalf of your entity, never as yourself. Your signature must show you’re acting as an agent of the business, not personally.

🛠️ Action Steps: Fix It Now

The correct signature format:

• ✅Check your last three (3) signed contracts- did you sign correctly?

• ✅Create a signature template with your business name and title.

• ✅Save this format in your phone/computer for quick access.

  One incorrect signature can pierce your corporate veil and make you personally liable for business debts, lawsuits, and obligations.

📌 Disclaimer

The information provided in this newsletter is for general informational purposes only and does not constitute legal, tax, or financial advice. While every effort is made to ensure accuracy, laws and regulations change, and individual circumstances vary. For advice specific to your business, please consult a qualified professional.

When in doubt, consult a licensed attorney to review your compliance needs.
If you don’t have one, I’m happy to help you get connected, just schedule a quick call.

Thank you for reading.

Keep showing up, protect the business that you are building and share what you learned with a friend !

Until next time💛