LLC Signing Authority vs POA

[Kristin R.]

My business partner and I started an LLC and purchased our first BRRRR using hard money. We are in the Refinance phase and talking with different lenders. The lenders we have talked to require that we both sign all documents.

We are both active duty military which is complicating the process as my partner will be deployed when we close. He’ll be in a location that will make getting a notary nearly impossible.

This deployment is not a surprise, so we wrote our operating agreement to have me as a managing member/owner with signing authority. Despite this the lenders are still requiring both of us sign.

Are we missing something?

The solution to this is to get a power of attorney (something that is standard for most deploying service members anyway). We'd likely do a specific POA since the general is too broad. Since the military lawyers aren't always familiar with this, what should we recommend the specific POA say?

Thank you in advance for the help and recommendations!

[Bob Floss II]

@Kristin R. You'll need to check local rules, in Illinois we have a statutory power of attorney that is provided by the State and we modify it to fit the situation. Have you tried putting together a members certificate or a resolution voted on by the members to give you authority to sign on behalf of the LLC? It wouldn't need to be notarized and should do the same thing. You can reference the property specifically and it should appease the underwriter.