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What is a Corporate Seal, and Do I Need One?

Picture of a corporate sealWhen I form a corporation for a client, I purchase a customized corporate records book, which comes with share certificates and a corporate seal. This post explains what a corporate seal is and when it might be used.

A corporate seal is a hand-operated metal device that can emboss the corporation’s name and state and date of incorporation on a piece of paper. It, thus, can serve as evidence that the corporation acknowledges an agreement or other document as binding the corporation.

Picture of a sealed envelopeAs an analogy, think of an English king, centuries ago, sealing a letter with molten wax and making an impression of his ring in the wax before it hardens. Whoever received the letter would know that it came from the king.