Signing a Contract in Your Own Name Instead of the LLC's

You formed the LLC so the company would carry the risk. Then you signed the contract as you.

It's one of the smallest mistakes in business. A missing company name and a missing title. It can also undo the reason you formed the LLC in the first place.

Who's actually on the hook

An LLC is its own legal person. It can own things, owe money, and sign contracts.

But it can't hold a pen. A person always signs for it. The question is whether that person signed as the company or as themselves.

If the contract just says "Jane Smith," the other side can argue Jane made the promise. Not her LLC. Her.

Under general agency law, someone who signs without making it clear they're signing for a company can end up a party to the contract. Your LLC protects you from the company's debts. It doesn't protect you from promises you made yourself. I wrote more about what an LLC does and doesn't shield.

What a clean signature looks like

It's not complicated. The signature block should show three things: the company's full legal name, your name, and your title.

Something like "Smith Landscaping LLC, by Jane Smith, its Manager." That's the whole fix.

Use the exact name on file with the state, including the "LLC." Use a title that matches how your company is actually run, like Member or Manager.

It's not just the signature line

The top of the contract matters too. The party named in the first paragraph should be the LLC, not you.

Same with quotes, invoices, leases, and emails that make promises. If the business keeps showing up as you, people will reasonably think they're dealing with you.

And watch for the extra page. Landlords and lenders often ask for a personal guarantee. That one's on purpose. Sign it, and you're on the hook no matter how cleanly you signed everything else.

Signing before the LLC exists

There's an earlier version of this mistake. You sign a lease or order equipment before the LLC is filed.

There's no company yet to be the party. So the person who signed can end up holding the contract.

If you can, wait until the state approves the filing. If you can't, have the contract say the company will take it over once it exists. Even then, you may stay on the hook unless the other side agrees to release you. If you're still deciding what kind of company to form, here's how I think about the options.

If you've already signed the wrong way

Don't panic. One sloppy signature doesn't automatically make you personally liable. Courts look at the whole picture, including what the other side knew about who they were dealing with.

But it's worth cleaning up. A short amendment that names the LLC as the party usually does it. That's an easy ask while everyone still gets along, and a much harder one after a dispute starts.

The simple version

Your LLC can only protect you on deals that are actually its deals.

Sign as the company, with your title, every time. It takes five extra seconds.

If you'd like someone to look over the contracts your business signs, here's how I help with business contracts. And if you want to talk through your situation, you can schedule a consult.

This is general education, not legal advice for your situation. I'm licensed in Utah, Arizona, and Texas.