Temporary personal sales rep contract until LLC goes through?

dchuk

dchuk

Senior Botter
Oct 30, 2008
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San Diego,CA
serpiq.com
I mailed in my CA LLC paperwork right after the first of the year for tax reasons and apparently CA Sec of State office is struggling right now and they haven't even cashed my check yet.

I have a few sales people ready to do sales on a product that's ready to sell, the only problem is that we nor the sales reps want to move forward without a contract. From my limited legal knowledge, I believe signing a contract between my currently non-existent LLC and a sales rep would actually be invalid and could create a legal mess down the road if something were to ever happen.

So in trying to figure out a temporary solution in order to get sales started asap, I've been thinking about signing a contract between myself and the reps until I receive the LLC papers, and then signing a new contract between the LLC and the reps once the LLC is official, which would also include the necessary wording to transfer over any existing sales to the relationship of my company and the reps instead of myself and reps.

Is that risky enough to be stupid? Has anyone run into a situation like this? Advice?
 


i believe as long as its written you can postdate a contract.

I'd double check that if I were you, but if true then they would get their assurance of a contract under the company and you would get the goahead for them to start working but during that time they wouldn't be covered by the contract under the company.
 
@deli - that seems like a potential option, I'll check out that

@super - The company is owned by myself and a friend, who majored in entrepreneurial studies so he's done this in his classes a few times.

It's funny, the actual form for an LLC in CA is one single sheet of paper. But for legal purposes, you have to take care of all of the specifics of incorporation and keep that stuff filed away. It's kind of a confusing process though, hence why LegalZoom does so well.
 
Check with an attorney regarding CA law, but in many jurisdictions a contract may be entered into via a 'pre-incorporation contract' by a 'company in formation' and a third party with the contract to be ratified by the company upon its formation.

Also check to make certain that you wouldn't be assuming any potential personal liabilities/risks.
 
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