Can an LLC Assign Power of Attorney to a Non-Director or Non-Member to Handle Its Business Affairs?

A Limited Liability Company does have the legal authority to appoint an individual as “Attorney in Fact” using a Power of Attorney document.

But there are two organizational specifics that must be reviewed prior to making such a determination for the LLC.

First, the managers of the Limited Liability Company must carefully review its Operating Agreement to ensure that such an appointment can be made (or that it is not prohibited). Typically if such a designation is not prohibited, the LLC can assign an Attorney-in-Fact through a Power of Attorney document.

Second, if the Limited Liability Company is permitted to delegate that authority and name someone to act with Power of Attorney, the document must be reviewed to assure that a non-member or a person not named as manager of the LLC can act in said capacity. Some Operating Agreements will state specifically if a non-member is barred from acting on behalf of the company, preferring to work only through the engagement of legal counsel under the direction of the Members.

The ability to make an Attorney-in-Fact appointment for the LLC is dictated solely by the language utilized in the Operating Agreement of the Limited Liability Company, whether permitted or prohibited.

State law as to this question should also be reviewed, to ensure the state location of filing does not prohibit a non-director or non-member to act as an Attorney in Fact. (Since the business entity is not a person, some states look unfavorably on an unlicensed non-attorney providing ‘legal services’ to a Limited Liability Company, even if those ‘services’ are not truly legal representation.)

If the Power of Attorney appointment is appropriate, representatives of a Limited Liability Company can easily, quickly and for less than $15 designate power of attorney through the use of Standard Legal’s Power of Attorney legal forms software package.