Legal Question in Business Law in Tennessee
Document Signings
My business partner and I created an LLC we are the only two members. Can we sign a contract with another party with our names and below that Principal instead of Member with the same legal protection.
2 Answers from Attorneys
Re: Document Signings
The principal designation is probably fine, but keep in mind that liability protection depends on more than just stating you are an LLC. It must be properly set up with a comprehensive operating agreement and maintained according to those terms and Georgia law.
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.
The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.
Re: Document Signings
Remember, if you want the protections of an LLC, then the LLC should be signing the contract with the other party-- not you or your business partner.
That being said, generally speaking, when a LLC signs a contract, then you or your business partner sign the contract to indicate that you have sufficient authority to bind the LLC to the contractual agreement. To that extent, it does not matter if you indicate that you are a member, principal, or president.
Keep in mind that this is general information only, and it could be different depending on your specific factual scenario. Also, the above is purely for informational purposes, and no attorney-client relationship exists.
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