We are opening business checking accounts for five different entities. We have a resolution and operating agreement from each entity showing authorization for an individual, John Smith, to serve as authorized signer for each entity. We aren’t sure how to label the authorized signer in our signature cards. Should our signature cards simply name the individual signer (“John Smith”)? Or “John Smith, Managing Member?” Or “John Smith, by Entity 1, Managing Member” (although it would be difficult to fit in that much text in our signature card authorized signer box)?

Signature cards are designed principally to assist tellers and back office personnel in confirming the signature of an authorized signer on an account. We believe it would be best to identify John Smith as an authorized signer, followed by his title and his signature. We do not believe it is necessary to write, “John Smith, by Entity 1, Managing Member,” since the entity would be identified on the signature card as the account holder.