Requirements for a Company Seal
What is a Company Seal?
The company seal, sometimes called a corporate 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.
This company stamp 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 the 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.
LLCs often use the digital corporate seal on the Operating Agreement, membership certificates, banking resolutions, invoices, receipts, et al. Corporations can use their corporate seal on their bylaws, stock certificates, and meeting minutes to make them official.
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.
How to Get a Corporate Seal
Do you need a company seal? While the use of company seals has diminished, some businesses still choose to have them for ceremonial or traditional purposes. Harvard Business Services, Inc. offers a free digital seal to all new Delaware corporations and LLCs we form on behalf of our clients. For more information on obtaining a physical company seal, or to order additional seals for you company, contact Harvard Business Services, Inc. via phone (800-345-2677) or live chat.
Next: Is a Corporate Kit Necessary?
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
More By Devin Scott
There are 26 comments left for Requirements for a Company Seal
Senior Associate said: Wednesday, November 15, 2017I was always told that when you use a Corporate seal it should be accompanied by a signature from one of the officers in the company. Is that true?
HBS Staff replied: Friday, November 17, 2017There is no requirement to sign as well as seal a document, but certainly no prohibition against using both. Thanks for reading our blog,
Joan Sonner said: Monday, November 13, 2017Our company was originally incorporate in Delaware in 1989. In 2012, we re-incorporated in California same entity name. Our Corporate Seal stamp says "California 1989" - our original incorporation date, but our current state of incorporation. Is this correct?
HBS Staff replied: Tuesday, November 14, 2017Typically, the corporate seal will display the state where the company was formed and the year the company was formed in that state.
Dorothy said: Thursday, August 3, 2017Is 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, 2017The 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, 2017Thanks!
Dan Schroer said: Monday, May 8, 2017I 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, 2017You can call 1-800-345-2677, email info@delawareinc.com or live chat with us via our homepage.