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Business Accounts: Authorized Signer Information

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Question: 
Can you give me any information on authorized signers on a business account?
Answer: 

The greatest variable is the form of business organization.

If the business is an LLC, a partnership or a corporation, authorized signers must be named in a resolution passed by the governing body at a properly called meeting. Your institution would require a memorial of that resolution certified by the appropriate officer, secretary, etc. as being a complete and correct copy of the resolution already adopted. A resolution is necessary to either add or remove a signatory. (Some LLC's and partnerships delegate managing authority to a particular partner or member according to the terms of their partnership or operating agreement.)

If the business is a sole proprietorship, it is for all practical purposes an individual account. Some state statutes allow for the naming of agents or convenience signers. Even in states where there is no statutory authority, naming an authorized signer on a sole proprietorship is common. Here, all that is necessary is that the sole proprietor execute documents naming the signatory.

First published on BankersOnline.com 5/06/02

First published on 05/06/2002

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