Company Seal Requirements | Why Use a Company Seal?

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what is a company sealWhat Are Your Company Seal Requirements?

The company seal is a tool used to stamp or emboss your company's important documents in order to show the document is certified by, and agreed upon by, the Board of Directors of the company. 

The company seal contains the company’s name, its year of incorporation and the state in which the company was filed. Think of the corporate seal as the official signature of your company.

Some of the documents you might want to use a company seal on include:

  • employment and vendor contracts
  • minutes from Board of Directors meetings
  • leases
  • agreements of sale
  • loan documents
  • other commitments by the company

Any company may adopt  a company seal, change it as it sees fit and use it as needed by affixing, impressing or reproducing it onto documents. This decision is usually made in the organizational meeting called by the initial director of the company; this meeting is normally held as soon as possible after the company is incorporated.

Once this meeting is held and the proper documents are signed, sealed and placed in the minutes book, the corporation or LLC possesses the authority to conduct the day-to-day operations of the business.

One of the first orders of business in this meeting is the issuing of stock (for a corporation) or issuing of membership certificates (for an LLC). The company seal can be used to stamp the stock or membership certificates, in tandem with the signature of the president. 

This is important because the certificates and the Board of Directors' resolution authorizing the issuance of the certificates are the evidence that prove ownership in the business entity.

Be sure the stock certificates are properly stamped and signed by the president, as this can make it harder for someone to claim ownership with fraudulent certificates, which does happen from time to time.

what is a corporate sealHow to Get a Corporate Seal

Do you need a company seal?  It’s not legally required, but many companies have chosen to adopt and use a company seal.  Harvard Business Services, Inc. offers a free digital seal to all new corporations and LLCs we formed on behalf of our clients. For more information on obtaining a company seal, or to order additional seals for you company, contact Harvard Business Services, Inc. via phone (800-345-2677) or live chat.

 

More By Devin Scott

There are 4 comments left for Company Seal Requirements | Why Use a Company Seal?

Dorothy said: Thursday, August 3, 2017

Is a corporate seal a requirement for Delaware LLCs? I read an article recently that stated a seal is no longer legally required for any purpose.

HBS Staff replied: Friday, August 4, 2017

The use of the Corporate Seal is simply a matter of preference. Many business owners use a seal on all official company documents while others opt to not use it at all. 

 

Jane Robel said: Friday, May 12, 2017

Great post. thanks for sharing this with us. I believe it is a small investment,with huge return.

HBS Staff replied: Friday, May 12, 2017

Thanks!

Dan Schroer said: Monday, May 8, 2017

I need to get a seal created for Chinese Documents....we are importing and every once in a while I need the "official stamp" of the company. How do I order...

HBS Staff replied: Monday, May 8, 2017

You can call 1-800-345-2677, email info@delawareinc.com or live chat with us via our homepage.

George Cistrunk said: Thursday, April 20, 2017

You gave good information.

HBS Staff replied: Monday, April 24, 2017

Thanks very much! Glad we could provide helpful information to you.

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