Don’t sign your name to any contract – sign as a representative of your business.

No, seriously. Using your name and signature in a contract can be used later on to point liability to you should things fail. If you must sign contracts, then use the following outline:

(name of the company)
By: (your name and signature)
Its: (your position in the company)

Make sure to use the above format when signing business contracts as this will effectively allow you to sign not as yourself but as a representative of your company or business.

This is something both employees and small business owners need to remember, as some unscrupulous individuals will try to use this trick to place all liabilities on the shoulder of an individual instead of the company.

For example, your boss or someone you work with could try to get you to use your personal signature on a document or contract where you’re supposed to represent the business. Sneaky, yes, but rather effective in court.

You can always choose to personally guarantee a contract, which is sometimes useful in certain business-related situations, but at least you will be fully aware of your decision and not end up paying for something you’re not supposed to.