Your Personal Power of Attorney Isn’t Enough to Manage Your Business: Avoiding Operational Paralysis

Most business owners know they need a Durable Power of Attorney (DPOA) to protect their personal finances in the event of illness or incapacity. What many don’t realize is that a standard personal DPOA may not be enough to keep their business running. Without specific authority for business operations, your family or trusted representative could find themselves unable to access company accounts, approve payroll, or fulfill critical contracts. These interruptions can create costly delays and put your livelihood at risk.

The Limits of a Personal DPOA

A personal DPOA is designed to give an agent authority over your individual financial and legal matters. While it can cover personal bank accounts, real estate, and investments, it typically does not grant the powers needed to operate a business.

In Oklahoma, banks, vendors, and government agencies may refuse to honor a personal DPOA for business transactions unless the document explicitly includes business-related authority. For example, without a properly drafted business provision, your agent may be unable to:

• Access your company’s operating accounts
• Sign or renew vendor contracts
• Approve payroll or issue paychecks
• Manage licensing and regulatory filings
• Authorize purchases for inventory or equipment

How a Business-Specific DPOA Keeps You in Control

A tailored business power of attorney, or a customized Durable Power of Attorney with detailed business provisions, ensures that someone you trust can step in seamlessly if you cannot act. This document can be designed to authorize your chosen agent to:

• Oversee day-to-day operations
• Negotiate and sign contracts on behalf of the business
• Access and manage business bank accounts and credit lines
• Handle tax filings, permits, and compliance obligations
• Protect intellectual property and trade secrets

By clearly outlining your business agent’s authority, you reduce the risk of disputes or operational delays that could harm your business’s reputation and bottom line.

Coordinating With Your Governing Documents

If your business is an LLC, corporation, or partnership, then your operating agreement, bylaws, or partnership agreement may specify what happens if a manager or member becomes incapacitated. However, these documents often lack the practical authority a bank, supplier, or government agency will require to quickly act on behalf of your company in a crisis. Your business DPOA should be consistent with and complement your company’s governing documents, ensuring there are no conflicts that could slow decision-making in a crisis.

Protecting Both Your Family and Your Company

Your business is more than a source of income. It supports employees, serves customers, and provides stability for your family. A business-specific DPOA is a critical part of your continuity plan, ensuring your company can keep moving forward even if you are temporarily unable to lead.

At Littleton Legal, we help Oklahoma business owners integrate both personal and business DPOAs into their estate and succession plans. The result is a coordinated strategy that protects your personal assets, safeguards your company’s operations, and provides peace of mind for everyone who depends on you.

If you own a business in Oklahoma and want to ensure it can weather the unexpected, we invite you to schedule a consultation at LittletonLegal.com or call (918) 608-1836. Let’s make sure your business stays strong no matter what the future brings.