Signing a contract looks simple on the surface. Type your name, click the box, hit submit, and get on with your day.

But the way you sign is not just a formality, it controls who is actually on the hook, whether the contract holds up, and whether your personal assets stay safe if something goes sideways.

Small signature mistakes can turn into very real, very expensive problems later. And the frustrating part is that most of them are easy to avoid if you know what to look for.

In this post, we are going to walk through five common signature mistakes business owners make, why they matter, and what to do instead so you can sign with confidence and stop wondering if you just “messed something up” every time you finish a contract.

Mistake #1: Not Signing With Your Title

This is the one I see over and over. A business owner signs a contract with just their name, no title, no mention of the company. It feels casual and friendly in the moment, and then legally it backfires.

When you sign with only your name, the law often treats you as an individual, not as your LLC or corporation. The contract does not show that you meant to sign on behalf of the company, so you can end up personally responsible for every obligation in that agreement.

That small missing detail is how your personal bank account and your house suddenly get dragged into a business dispute.

Here is what a correct signature usually looks like:

Jane Smith, Member, Smith Consulting LLC (LLC)
Jane Smith, CEO, Smith Consulting Inc. (Corporation)

Your name says who you are, and your title says in what capacity you are signing.

And you want both.

Always sign with your full name and your title, and make sure the company’s full legal name is somewhere in the signature block. If the contract prepares a signature line for you, double-check that it lists the company correctly and that your title is accurate.

If you have more than one role in your business, or you work as both a contractor and a company owner, pause and ask yourself, “Who is supposed to be bound by this, me or my company?” Then sign in a way that matches that decision.

Mistake #2: Not Dating the Contract

Technically, a contract can be valid without a date, and lawyers love to argue about that. Practically, not dating your contract is just asking for confusion later.

When there is no clear date, it becomes harder to prove:

• When the obligations actually started
• Which version of the contract both sides agreed to
• Whether changes happened before or after signing
• Whether deadlines, renewals, or notice periods kicked in

If you ever have to pull up the contract a year later, you will want to know which agreement you are even talking about and when it began. That is what the date gives you.

You can also use an “effective date” if you need the contract to apply to work you already started. For example, maybe you began work on January 1, but you signed on January 5. The contract can say it is effective as of January 1, as long as both parties know that is what they are agreeing to.

Skipping the date feels small in the moment, especially when you just want to get the deal moving, but it opens the door to “I thought we agreed to something else” arguments that are stressful and time-consuming to untangle.

So, quick rule: sign, date, and keep a copy.

Mistake #3: Not Having the Authority to Sign

This one usually shows up in growing businesses, when more people are helping with admin tasks and everybody is moving fast. Someone “just signs it” because they are trying to be helpful, and then later you find out they never had the authority to sign in the first place.

Authority to sign is not just about someone’s job title. It comes from what your internal documents say.

For an LLC, that is usually your operating agreement.
For a corporation, that is usually your bylaws or a resolution.

Those documents say who can bind the company to a contract. If your name is not on that list, or if there are rules you did not follow, then you may not have the authority to sign for the business.

Some common situations:

• A virtual assistant signs a contract “for” the owner because the owner is busy
• A team member signs a software agreement without checking who is allowed to do that
• A contractor signs for their agency, but the agency never gave them permission

When someone signs without authority, a few messy things can happen. The contract might not be enforceable against the company at all, or the person who signed might end up personally on the hook for it. Neither option feels good.

To avoid this:

• Read your LLC operating agreement or corporate bylaws and see who actually has signatory authority
• Make sure the person on the other side has authority too, especially for larger deals
• If you are not sure, ask for confirmation in writing, even if it is a short email

Authority protects both sides. It protects you from being bound by something you never agreed to, and it protects your clients or vendors from finding out their contract is worthless.

Mistake #4: Not Having Both Parties Sign the Contract

This one sounds almost too simple, and yet it happens a lot in real life. One side signs the contract, sends it over, and then just starts work without checking if the other side ever signed. Months later, there is a disagreement and someone pulls the contract and realizes there is only one signature.

When only one party signs, questions come up like:

• Did the other party ever accept the offer?
• Did both sides clearly agree to these exact terms?
• When did the agreement actually start, if at all?

That uncertainty is the last thing you want when money is involved, or when you are trying to enforce a clause you care about, like a refund policy or a late fee.

Here are some simple ways to prevent that:

• Make sure both parties sign, not just you
• Use an online contract platform that shows when each person signs and sends you a final copy
• If people sign on different days or in different places, include a “counterparts” clause that says each side can sign a separate copy and together they count as one contract

Your contract is strongest when both signatures are present, legible, dated, and stored somewhere you can actually find later. This applies to NDAs, service agreements, contractor agreements, and any other contract that matters to your business.

If you catch yourself thinking, “We are on good terms, I do not need to chase their signature,” that is usually your sign to slow down and get it done properly. Friendly now does not always mean friendly later.

Mistake #5: Signing Before Your Company Legally Exists

A lot of entrepreneurs move fast and start using their “business name” before the legal side catches up. You start taking clients, you get a contract template, you sign as “Your Business LLC” because that is the plan, and you think you are set.

BUT, if your LLC or corporation is not legally formed yet, it is not a real entity in the eyes of the law. So if you sign a contract in the name of a company that does not exist, the contract is actually with you as an individual.

That means:

• You are personally responsible for every obligation in the contract
• Your personal assets could be used to satisfy a judgment or debt
• You do not get the protection that an LLC or corporation is supposed to give you

If you need to sign a contract before your entity is formed, you usually have two choices:

1. Sign as an individual, then later assign the contract to your LLC once it is formed (if the contract and the law in your state allow that), or
2. Wait to sign until your entity is officially formed and you have your formation documents back

It can feel annoying to slow down at this stage, especially when you are eager to start working, but this is one of those moments where a little patience can save you a lot of stress later.

If you are already in the situation where you signed as an LLC before the LLC existed, it is worth talking with a lawyer in your state about what options you have to clean that up.

Key Takeaways on How To Sign A Contract

Signing a contract the “right” way is not about being formal for no reason, it is about protecting yourself and your business from problems that are totally preventable.

By avoiding these five mistakes, you help make sure that:

• You are signing as your company, not accidentally as an individual
• Your signatures are valid, clear, and easier to enforce
• Your contracts show the right parties, dates, and authority
• You are in a stronger position if a disagreement or dispute comes up

A little extra attention when you sign goes a long way in guarding both your peace of mind and your bank account.

Protect Yourself With an Attorney Drafted Client Contract

If reading this made you realize your contracts are a bit messy, you are not alone. Most business owners figure this out the hard way, after something goes wrong, and it does not have to be that way.

If you want a clean starting point that actually supports you, grab the Client Contract Template from The CEO Legal Loft template shop. The templates in the shop are attorney-drafted and written in plain language, so you understand what you are agreeing to, how to sign it correctly, and where your protections actually are.

You deserve contracts that feel clear, aligned with how you work, and protective of the business you are building, not contracts that scare you into signing and then leave you exposed.