Authorized Signers On Partnership Accounts
by Mary Beth Guard, BOL Guru
Question: Can you legally add an authorized signer on a partnership account (someone other than a partner), or do all the authorized signers need to be partners?
Answer: A partnership can provide you with a partnership resolution designating authorized signers, just as any other type of business can. You simply need to make sure you receive the appropriate documentation, and in the case of a partnership, that would mean a partnership resolution.
It does not matter that the new authorized signer is not a partner. This is quite common. For example, you may have a law firm that is a partnership who puts their bookkeeper on the bank account as an authorized signer. The important thing is to make sure the new authorized signer was properly appointed by the partnership.
New Account Documentation
From limited liability companies to sole proprietorships, joint accounts to revocable trusts, the detailed New Account Documentation Chart (part of the Operations Matrices) tell you how to style the account, what TIN to use, who can sign, who can make changes, and what documentation you should request. The Operations Matrices set also contains a Right to Financial Privacy cheat sheet, FDIC Deposit Insurance Quick Reference Guide, Bank Advertising Compliance matrix, and GLB Privacy matrix. Order NOW in the Banker Store.
The original version appeared in the January/February 2002 edition of the Oklahoma Bankers Association Compliance Informer.
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