Are electronic signatures valid?

Yes. Electronic signatures are generally legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes. Exceptions exist for wills, certain court filings, and some conveyances; verify acceptance with the recipient and applicable state law.

Who should sign the statement?

An officer or authorized agent signs in an indicated capacity; companies commonly attach a board resolution or certified minutes to document delegation of authority and avoid later challenges to the signer’s authority.

Is notarization required every time?

Not always. Notarization depends on recipient requirements and state rules; banks and title companies often require notarized acknowledgement, whereas some vendors accept unsigned or electronically authenticated statements without a notary.

How do I revoke or amend the statement?

Revoke by issuing a signed, dated revocation delivered to affected parties and updating internal records. For organizational changes, adopt a new resolution and circulate the updated statement to banks and vendors.

How long should I keep executed copies?

Retain executed copies per regulatory needs: at least 3 years commonly, 7 years for contractual disputes, and 6 years for HIPAA-related records (45 CFR §164.530(j)); check state-specific retention rules.

What happens if name or TIN mismatches occur?

Mismatched legal names or incorrect EINs can trigger backup withholding (24%) and filing penalties under IRC §6721; correct records promptly and provide updated documentation to the requester.

Electronic Signature
Templates
Miscellaneous
Business Authority Statement

Business Authority Statement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS AUTHORITY STATEMENT

THIS BUSINESS AUTHORITY STATEMENT (the "Statement") is entered into by and between Company Name: , a business organized as Entity Type: Corporation LLC Partnership Sole Proprietorship Other and having a principal place of business at Principal Address: .

WHEREAS

WHEREAS, the Company is duly organized and validly existing under applicable law and is authorized to conduct its business and to appoint representatives to perform acts on its behalf; and

WHEREAS, the Company desires to designate an Authorized Representative to act on behalf of the Company for certain business purposes, and the Authorized Representative has represented that they hold the title and authority described below and is willing to accept such designation.

WHEREAS, this Statement sets forth the scope, limits, terms of appointment, and other material provisions governing the authority granted.

AUTHORIZED REPRESENTATIVE

Representative Full Legal Name Representative Title/Position Representative Contact

SCOPE OF AUTHORITY

The Company hereby appoints the Authorized Representative, and the Authorized Representative accepts appointment, with the authority to act for and on behalf of the Company to perform the acts described below. The Representative's authority shall include, without limitation, the power to:

Describe specific authorities, limitations, and duties

The Representative shall not exceed the authority described above and shall obtain express written consent from the Company for any act reasonably outside the scope of this Statement.

PAYMENT TERMS

If compensation is to be paid to the Authorized Representative in connection with duties performed under this Statement, the parties set forth the terms as follows.

Compensation Amount Payment Schedule / Method Late Payment Fee

TERM AND TERMINATION

This Statement shall be effective as of the Effective Date set forth below and shall continue in effect until the End Date specified or until earlier termination in accordance with this section.

Effective Date End Date Notice of Termination

CONFIDENTIALITY

The Authorized Representative shall have access to Confidential Information of the Company in connection with performance of duties under this Statement. "Confidential Information" means non-public business, financial, technical, strategic, or customer information disclosed or made available by the Company to the Representative, whether orally, in writing, or electronically.

The Representative shall (a) maintain Confidential Information in strict confidence, (b) not use Confidential Information except as necessary to perform authorized duties, and (c) not disclose Confidential Information to third parties without prior written consent of the Company, except as required by law. This obligation shall survive termination of this Statement for years.

REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full power and authority to enter into this Statement and to perform its obligations hereunder, and that the person executing this Statement on its behalf is duly authorized to do so.

GOVERNING LAW

This Statement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

ENTIRE AGREEMENT

This Statement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. Any amendment or modification must be in writing and signed by an authorized representative of each party.

CERTIFICATION

The undersigned certify under penalty of perjury that they are authorized to execute this Statement on behalf of the respective party and that the information contained herein is true and correct to the best of their knowledge.

Company Name:

By:

Date:

Authorized Representative:

By:

Date:

What a Business Authority Statement Is and When It’s Used

A Business Authority Statement is a written declaration that identifies the individual(s) authorized to act on behalf of a business entity for specific activities such as signing contracts, opening bank accounts, filing documents, or communicating with third parties. It clarifies scope and limits of authority, references the business legal name and taxpayer identification, and is often submitted to banks, vendors, or government agencies to verify signing power. The statement can be a standalone affidavit, part of corporate resolution minutes, or an attached schedule to another agreement.

Why the Business Authority Statement Matters for Transactions

The statement reduces ambiguity about who may legally bind the company, speeds counterparty acceptance, supports internal controls and audit trails, and helps prevent fraud and disputed signatures by providing a clear, contemporaneous record of delegated powers.

Who typically provides or accepts a Business Authority Statement

Organizations and counterparties rely on these statements when confirmation of signing authority is required before a transaction proceeds.

Real estate firms and title companies requesting signatory proof before closings.
Banks and financial institutions verifying signers for new or existing accounts.
Legal, procurement, and vendor teams confirming delegated authority for contracts.

The form is commonly exchanged during onboarding, major transactions, or anytime signatory roles change.

Primary signer roles and typical situations

CEO

A chief executive frequently signs major contracts, bank documents, and regulatory filings; include title and evidence of board appointment or bylaws if requested by the counterparty.

Authorized Agent

An appointed agent or officer (e.g., CFO, corporate secretary) may sign within defined limits; provide a corporate resolution or power-of-attorney document to document the delegation and its effective date.

Security and verification items to include

Encryption: TLS 1.2/1.3; AES-256

HIPAA BAA: Execute BAA when PHI present

Audit trail: Timestamps, IP, actions

Access controls: Role-based user permissions

Retention policy: Document storage rules

Authentication: Email, SMS code, or 2FA

Consequences of an incorrect or missing statement

Contract voidance: May render agreement unenforceable

Tax penalties: Backup withholding, IRC §6721 exposure

Banking delays: Account actions refused

Fraud exposure: Unauthorized commitments risk

Notarization defects: Invalid acknowledgements

Reputational risk: Counterparty trust reduced

Common preparation mistakes to avoid

Listing an informal or trade name instead of the company’s legal entity name, which causes rejections or delays with banks and regulators.
Providing an unsigned or undated statement, creating uncertainty about when authority began and allowing counterparties to refuse acceptance.
Failing to attach supporting corporate resolution or board minutes when requested, which prolongs verification and onboarding.
Using inconsistent signer names or initials across supporting documents, increasing the chance of rejection or requests for corrective affidavits.

Step-by-step: completing a Business Authority Statement

Follow these steps to complete and validate the statement before sharing with counterparties.

01

Gather documents: Collect business formation records and resolutions
02

Identify signers: Use exact legal names and official titles
03

Complete fields: Enter dates, scope, and any limits clearly
04

Execute and distribute: Sign, notarize if required, and share copies

Typical digital workflow settings for e-submission

Common configuration choices ensure authentication, visibility, and proper recordkeeping when sending the statement electronically.

Field	Configuration
Signature Authentication	Email link plus optional SMS code
Document Visibility	PDF with locked fields after signing
Audit Trail	Capture IP, timestamp, and actions
Storage Format	PDF/A archival and download

How eSubmission typically works for this statement

Electronic execution follows a short sequence from upload to signed archive; each step creates verifiable metadata.

Upload document: Sender uploads the completed statement file
Place fields: Signer name, signature, date fields are placed
Send to signer: Signer receives an authenticated link
Complete record: Signed PDF and audit trail are stored

Platform and file requirements for electronic submission

Ensure the eSignature platform supports required authentication and preserves an audit trail before sending the statement.

File formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS code, SSO

Retain the signed copy and a reproducible audit trail; confirm the recipient accepts electronic records under ESIGN/UETA.

Timing and delivery expectations for the statement

Deadlines depend on the recipient and the triggering event; act promptly when authority changes or when requested by a counterparty.

Effective date:

Use the date the authority becomes valid; affects third-party reliance

Provide on request:

Deliver to banks or vendors immediately when requested

Update after change:

Replace statement promptly after personnel or role changes

Notarization timing:

Complete notarial steps at signing if required by recipient

Record retention:

Keep executed copy according to your retention schedule

Key milestones from draft to accepted record

A sequential milestone view clarifies internal and external checkpoints for executing the statement.

01

Draft preparation

Assemble entity records, specify scope, and draft the statement text

02

Internal approval

Board resolution or officer sign-off validates delegation

03

Execution and notarization

Signers execute; notarize if counterparty or state requires

04

Distribution and filing

Provide copies to banks, vendors, and file internally

How a Business Authority Statement compares with a Power of Attorney

Compare scope, formality, and typical authentication to choose the correct instrument for your needs.

Criteria	Business Authority Statement	Power of Attorney
Primary use	limited corporate acts	broad personal or corporate acts
Notarization	varies
Legal scope	narrow and task-specific	broad and often general
Typical proof	corporate resolution attached	formal executed poa

Common eSignature vendor pricing and feature snapshot for executing statements

Compare starting price and a few features relevant to signing and sharing Business Authority Statements; signNow is listed first per vendor convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical tips for accurate and efficient completion

Follow these best practices to reduce rework, speed acceptance, and maintain a reliable audit trail.

Verify entity and signer names

Confirm the legal entity name matches formation documents and tax filings; ensure signers use their full legal names and titles to prevent mismatches that cause bank or vendor rejections.

Attach supporting corporate records

Include a certified corporate resolution, bylaws excerpt, or board minutes demonstrating delegation of authority so recipients can confirm scope without additional requests.

Use clear scope and limits

Explicitly state transaction types, monetary limits, and any temporal limits to prevent disputes about authority and to make the statement acceptable to conservative counterparties.

Preserve the signed record

Store the executed PDF and its audit trail in secure, access-controlled storage and maintain backups to satisfy retention and discovery obligations.

Real-world examples of how the statement is used

Two typical scenarios illustrate common phrasing and supporting documentation that counterparties expect.

Real Estate Closing

A closing agent requests a notarized statement confirming the authorized officer

Statement limited to property sale documents only
The company attaches board minutes and a certified resolution; the notarized statement enables title transfer and lender acceptance without additional delay.

Bank Account Setup

A bank requests signatory proof for a new operating account

Statement names authorized signers and dollar limits
The company provides the statement plus specimen signatures and a corporate resolution, allowing account opening and check-writing privileges.

Frequently asked questions about Business Authority Statements

Answers to common questions on validity, notarization, e-signing, revocation, and recordkeeping for U.S. transactions.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are generally legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes. Exceptions exist for wills, certain court filings, and some conveyances; verify acceptance with the recipient and applicable state law.
Who should sign the statement?
An officer or authorized agent signs in an indicated capacity; companies commonly attach a board resolution or certified minutes to document delegation of authority and avoid later challenges to the signer’s authority.
Is notarization required every time?
Not always. Notarization depends on recipient requirements and state rules; banks and title companies often require notarized acknowledgement, whereas some vendors accept unsigned or electronically authenticated statements without a notary.
How do I revoke or amend the statement?
Revoke by issuing a signed, dated revocation delivered to affected parties and updating internal records. For organizational changes, adopt a new resolution and circulate the updated statement to banks and vendors.
How long should I keep executed copies?
Retain executed copies per regulatory needs: at least 3 years commonly, 7 years for contractual disputes, and 6 years for HIPAA-related records (45 CFR §164.530(j)); check state-specific retention rules.
What happens if name or TIN mismatches occur?
Mismatched legal names or incorrect EINs can trigger backup withholding (24%) and filing penalties under IRC §6721; correct records promptly and provide updated documentation to the requester.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now