When you form a business as a corporation, the company becomes a separate legal entity. Your name is no longer valid when you’re signing contracts between the business and another party. Representatives must be authorized to sign for the company. These representatives can include board members, managers, and other personnel. If an employee who hasn’t been authorized signs a document or contract on the company’s behalf, this can cause legal troubles. Not every employee is an authorized business representative. Someone who doesn’t have the authority to make important business decisions shouldn’t be signing legal documents or contracts for the company. Managers with more responsibilities, such as a manager who serves as a corporate officer, may be authorized by the owner of the business to sign.
