what does it mean to be principal of a company
A principal is an owner of all or a portion of a private company. A principal is the one who can sign legal documents on behalf of a company or designate an agent to do so on her behalf. A principal in a transaction is someone who has an ownership stake or vested interest in that transaction.he Term: Member or Principal. Legally, a person or business that owns a stake in a limited liability company is referred to as a member. Whenever you correspond with or submit any documentation to your state's secretary of state, you will need to use the term member when referring to the LLC's owners.