Who Signs?

“As the owner of my company, I’m the only person who can sign checks. Am I required to have a second signer?”

Your HR Survival Tip

Many small companies have only one person authorized to sign company checks. This may not be a problem most of the time and it’s not legally required but you need to consider alternatives.

Some situations where a check must be signed are:

• An employee turns in their resignation or is fired while you’re on vacation and their final paycheck must be delivered on their last day of work.
• An employee walks out. Legally, you have only 72 hours to deliver their final paycheck.
• Repairs or supplies are needed by your business and payment is needed.
• Something happens to delay your return to work.

If you have a trustworthy employee, relative, or friend who could hold a blank signed check in your absence, you’d at least have a way to ensure your business has money when or if needed. Some business owners keep a few blank signed checks in the company’s safe or with their accountant.

Decide what your “what if’s” might be and what the consequences would be if money weren’t readily available because you’re on vacation or otherwise indisposed. Also, decide on either who else might sign that check or who could hold one for you. As your company grows, you’ll realize you can’t make everything wait on you so prepare now.