How to Sign a Contract as an LLC
How to Sign a Contract as an LLC
When a buyer or seller is purchasing or selling through an LLC rather than in their personal name, the signing mechanics change. Here's what to know.
Why It Matters
An LLC is a separate legal entity. For a contract to bind the LLC, the person signing must have authority to sign on the LLC's behalf, and the signature block must reflect that authority. A signature in the wrong format can create title issues or a void contract.
Correct Signature Format for an LLC
The signature block should read:
[LLC Name], a Texas limited liability company
By: ___________________________
[Signer's Name], [Title]
Example:
Acme Holdings LLC, a Texas limited liability company
By: ___________________________
John Smith, Member/Manager
Do not have the individual sign just their personal name if they're signing on behalf of the LLC.
Who Has Authority to Sign?
- Single-member LLCs: The sole member (or manager, if manager-managed)
- Multi-member LLCs: Whoever has signing authority per the LLC's operating agreement
If there's any question about who has authority, request a copy of the LLC's operating agreement or a Certificate of Authority.
Title companies will ask. Get clear on this during the contract phase, not at the closing table.
The Listing Agreement / Buyer Rep Agreement
The same rules apply. If your client is an LLC:
- The party to the agreement is the LLC, not the individual
- The individual signs as the authorized representative of the LLC
- Get their title right (Member, Manager, Managing Member, Authorized Representative)
Common Issues
| Issue | Fix |
|---|---|
| Signer doesn't know their title | Have them check their LLC formation documents or operating agreement |
| Multi-member LLC — unclear who has authority | Request operating agreement before signing anything |
| Name mismatch (LLC name on title vs. contract) | Must match exactly — no abbreviations or variations |
| Foreign LLC (registered in another state) | May need additional documentation; flag for title early |
Get Title Involved Early
When you know an LLC is purchasing or selling, notify your title company contact at the time of contract execution — not at closing. Title will need the LLC's formation documents and may need to underwrite the transaction differently.