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Tina, Lawyer
Category: Legal
Satisfied Customers: 33167
Experience:  JD, BBA Over 25 years legal and business experience.
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I am running a sole proprietor company. One client says it

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I am running a sole proprietor company. One client says it is convenient to sign a contract with a firm that may sign sub-contracts with others to safe them time to do to many contracts. I am wondering whether I can sign contract as a company and what this means. What are the differences between signing a contract as a company and an individual in the case of sole proprietor company.

I am also asked whether the firm is registered as" the bank vendor"? What does it mean?

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. Before I can give you an accurate answer to your question, please provide the following additional information:

Your question is whether there is a difference in the legal effect of signing a contract as an individual or a sole proprietor?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 4 years ago.

Yes, the legal differences between

-signing a contract between myself an Ms..... and the client

-signing a contract as the name of the company and the client.


Also, I do not know how to sign a contract in the name of the sole proprietor.


I also do not understand the question asked by the client - whether I am regsitered as the bank Vendor. The client 's name is XXXXX XXXXX Does the question ask whether my company has been registered to provide services for the Bank? Or is it a legal question?

Hello again and thank you for the additional information.

In a sole proprietor situation, the individual owner is the business so there would typically be no difference between signing a contract as an individual or in the company name. There is no liability protection provided sole proprietors who have not incorporated normally, so the owner would be personally liable for any debt incurred by the company.

To sign a contract in the company name, the contract could use the company name as one of the parties entering into the contract, then the signature line would typically include "your name, owner".

As for the vendor registration, some government entities permit companies to register as a vendor for that entity, although I am unsure what the individual meant by a registering as a bank vendor. Normally, organizations do not have a formal registration process to register as a vendor except in some situations where they might be working on a government contract. In that case, you would typically contact the government contractor and inquire about registering as a vendor to provide services.

Here is a link to the L.A. County vendor registration page, which provides an example of registering as a vendor:

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


Customer: replied 4 years ago.

Dear Tina,

I wonder whether I can ask a follow up question. What are the legal advantages/disadvantages for clients if they have to sign a contract with a sole proprietor company? I need the other side of the story as well.



Hello again,

The primary legal advantage to the other party is generally that the owner of the company can be held personally liable for the contract obligations. A common disadvantage is that sole proprietorships tend to be smaller companies and may not have the resources to collect against if they do default on a contract, and if the owner does not have assets to satisfy a judgment, then the other party may not be paid for their services.
Tina and other Legal Specialists are ready to help you

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Thanks again and all the best to you.


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