Anything You Should Know: How to Get a Company Seal Part One
Many small business owners are confused about how to get a company seal. Although the company seal is no longer needed, it will add credibility to a business document.
What Is a Corporate Seal?
A corporate seal is identical to a state seal, in that it is the corporation's official seal. An organization is considered a distinct legal body from its private members. This seal serves as the corporation's official signature. To sign every official document, the official signature, or stamp, was once needed. This prohibited people from making decisions without the approval of the corporation's other members.
However, technological advancements made authenticating the corporate seal challenges. Corporate seals are less often used nowadays. Corporate seals are also used for bank accounts and other smaller corporate accounts, but they are less used for legal records. Different states have various standards, so consult with your state and see if a corporate seal is required for legal documents.
What Is the Purpose of a Business Seal?
The company seal can only be used for the most relevant corporate transactions. It should not be used to keep meeting minutes or to create service level agreements. It should not be used with distributor contracts either. There are a few occasions when the company seal can be used:
- Resolutions of the business
- Contracts and deeds at the highest levels
- Transfers in real estate or property contracts
- Mortgages and loan statements
- International treaties
- Stock certificate issuance
Furthermore, a company seal cannot be used without prior permission. The use of the corporate seal should be recorded in the Articles of Association or the minutes of the board meeting. In certain instances, the corporate seal must be followed by the signature of the president or CEO.
