Can this document be signed electronically?

Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.

Is notarization always required?

Not always. Notarization depends on counterparty requirements and state law; real property or certain bank actions commonly require notarized acknowledgements.

Who may sign on the company’s behalf?

An authorized officer, manager, or person named in a corporate resolution may sign. Verify internal bylaws or operating agreement to confirm delegation authority.

How do I revoke an authorization?

Issue a written revocation signed by an authorized officer, distribute it to prior recipients, and follow any counterparty procedures; allow processing time for banks or registries.

What supporting documents should I attach?

Attach corporate resolutions, meeting minutes, or incumbency certificates when requested by banks or vendors to verify the signer’s authority and corporate approval.

How long should executed documents be retained?

Retain executed authorizations per industry rules and federal minimums: at least 3 years for tax records and 6 years for HIPAA-regulated materials when applicable.

Electronic Signature
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Business Authorization Document

Business Authorization Document

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Business Authorization Document

Effective Date:

Client Name: Business Name (if different):

Business Address Entity Type

Corporation LLC Partnership Sole Proprietorship Other:

WHEREAS

WHEREAS, Client Name: is duly organized and authorized to conduct business in the jurisdictions set forth above and desires to engage an Authorized Representative to perform certain actions on its behalf.

WHEREAS, Authorized Representative Name: possesses the experience and authority to act for Client within the scope detailed in this Authorization.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

Scope of Work

Describe duties, authorities, and deliverables

Authorization and Powers

Client hereby authorizes the Authorized Representative to undertake the acts reasonably necessary to perform the Scope of Work, including but not limited to: (a) negotiating and executing contracts and amendments within agreed parameters; (b) opening, operating, and closing bank accounts dedicated to transactions under this Authorization; (c) endorsing checks and other instruments on Client's behalf where required to effectuate the Scope of Work; and (d) delegating duties to subcontractors provided such delegation does not expand the substantive authority granted herein.

Limitations on Authority

The Authorized Representative shall not: (i) sell, mortgage, or otherwise encumber Client's real property; (ii) make capital contributions or amendments to Client's organizational documents absent prior written approval; (iii) create obligations in excess of without express written consent; or (iv) compromise or settle claims exceeding without prior written approval from Client's authorized officer.

Payment Terms

Authorization Fee Amount Payment Schedule / Milestones Late Fee

Unpaid amounts shall accrue interest at a rate of % per month (or the maximum permitted by law), plus reimbursement of collection costs and reasonable attorneys' fees incurred in collecting overdue sums.

Term and Termination

This Authorization commences on Start Date: and shall continue until End Date: , unless earlier terminated as provided herein.

Either party may terminate this Authorization without cause by providing written notice at least days in advance. Termination for material breach shall be effective upon written notice if the breaching party fails to cure within 15 days of receipt of notice specifying the breach.

Confidentiality

The parties acknowledge that in the course of performance they may obtain confidential, proprietary, or trade-secret information ("Confidential Information"). Each party agrees to (i) hold Confidential Information in strict confidence, (ii) use such information solely for performance under this Authorization, and (iii) not disclose Confidential Information to third parties except to employees, agents, or professional advisors on a need-to-know basis and who are bound by confidentiality obligations at least as protective as those herein. Confidential Information shall not include information that is public knowledge, independently developed, or rightfully received from a third party without restriction.

Indemnification

Each party shall indemnify, defend, and hold harmless the other party from and against any and all liabilities, losses, damages, claims, costs, and expenses (including reasonable attorneys' fees) arising out of the indemnifying party's negligence, willful misconduct, or breach of this Authorization.

Notices

Notice Address for Client Notice Address for Authorized Representative

Governing Law

This Authorization shall be governed by and construed in accordance with the laws of the State of , without regard to choice of law principles that would apply the law of another jurisdiction.

Entire Agreement

This Authorization constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals, or representations, whether written or oral. Any amendment or modification must be in writing and signed by duly authorized representatives of both parties.

Miscellaneous

If any provision of this Authorization is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. No party may assign its rights or obligations under this Authorization without the prior written consent of the other party, except that Client may assign to an affiliate provided the assignee assumes Client's obligations hereunder.

Client (Printed Name):

By:

Date:

Authorized Representative (Printed Name):

By:

Date:

What a Business Authorization Document Is and When it Applies

A Business Authorization Document is a written record that grants a named person or position the legal authority to act on behalf of a business for specified tasks, such as signing contracts, accessing bank accounts, filing government forms, or representing the company in transactions. It typically specifies the scope of authority, any time limits or conditions, signature blocks, and whether notarization or witnesses are required. The document can be executed by an authorized corporate officer, manager, or member, and may be delivered electronically when ESIGN and UETA requirements are satisfied.

Why a Clear Authorization Document Matters

A concise authorization limits disputes, speeds decision-making, and provides a verifiable record of delegated powers, reducing operational friction and third-party reluctance to transact with your business.

Typical parties who prepare or rely on this document

Common users who draft, sign, or accept authorizations include internal decision-makers and external counterparties.

Small business owners and managers who delegate signing authority for day-to-day contracts and bank transactions.
Corporate officers or board members who record delegated authority for agents, subsidiaries, or specific projects.
Banks, lenders, and vendors that require written authorization to accept transactions or change account access.

Tailor the document to the recipient’s requirements (banks, vendors, regulators) and the authority scope requested.

Who typically signs and why

Business Owner

The owner or majority member signs to grant specific powers to employees, agents, or contractors; this avoids piecemeal approvals and clarifies liability for external parties and banks.

Corporate Officer

A CEO, president or authorized officer executes the document to delegate routine or project-specific authority while preserving board-level oversight and corporate recordkeeping.

Security, compliance and technical details to include

Encryption: TLS 1.2/1.3 in transit

Data at Rest: AES-256 encryption

Audit Trail: IP, timestamp, action log

Certifications: SOC 2 Type II available

Regulatory Support: ESIGN and UETA compliance

HIPAA Option: BAA available on request

Key risks if the document is incorrect or incomplete

Invalid Authority: Counterparty may reject transactions

Contract Disputes: Third parties may challenge enforceability

Bank Refusal: Financial institutions can deny account actions

Regulatory Exposure: Failed disclosures or filings risk fines

Tax Consequences: Incorrect filings can trigger penalties

Operational Delay: Work stalls while authority is validated

Common preparation mistakes to avoid

Using informal or ambiguous language that fails to define precise powers, leading to downstream refusal by banks or counterparties.
Listing a person with a name mismatch to government ID or corporate records; this frequently causes document rejection or delays.
Omitting effective and expiration dates or failing to state whether authority is revocable, which creates uncertainty about current powers.
Not specifying required authentication or notarization conditions when counterparty policies or state law demand them, increasing rejection risk.

Step-by-step: completing a Business Authorization Document

Follow these sequential steps to draft, sign, and distribute a clear authorization that third parties and regulators can accept.

01

Identify Parties: Enter full legal names and entity type
02

Define Scope: List precise powers and limitations
03

Set Dates: Specify effective and expiration dates
04

Sign & Authenticate: Obtain signatures, notarization if required

Configuring an online signing workflow

Set up the digital workflow to match required authentication, conditional fields, and post-signing storage rules.

Field	Configuration
Signer Authentication Level	Email link with optional SMS or KBA
Access Method	Guest signing link or authenticated user account
Conditional Fields	Show fields based on signer role or answers
Retention & Audit	Enable audit trail and PDF/A export for records

Technical and integration considerations for eSigning

Choose integrations and authentication that meet your business and counterparty requirements before sending.

Common Integrations: Salesforce, NetSuite, Microsoft 365
Accepted Formats: PDF, DOCX, HTML
Authentication Options: Email link, SMS code, KBA or SSO

How electronic completion typically proceeds

A standard e-sign workflow reduces friction—prepare the document, identify signers, authenticate, capture signatures, and store the audit record.

Upload Document: Import PDF or Word file
Place Fields: Add signature, date, and text fields
Invite Signers: Send email or generate signing link
Capture Audit Trail: Record timestamps, IP, and actions

Essential sections to include in a professional authorization

A professional document balances clarity, enforceability, and recordkeeping. Include explicit provisions to reduce ambiguity and support verification by third parties.

Authority Recital

State the corporate action authorizing the delegation and cite the board resolution or operating agreement if applicable to show internal approval and provenance.

Scope and Limits

Define exact powers, monetary thresholds, restricted actions, and whether authority is revocable or exclusive to avoid disputes with counterparties.

Duration

Specify effective and expiration dates or state that the authorization continues until revoked in writing to manage future liability and acceptance.

Signatory Details

Include full names, titles, addresses, and any required identification data so banks and vendors can corroborate identity quickly.

Notarization Clause

State whether notarization or witness attestation is required and include space for acknowledgment or RON metadata when applicable.

Record Retention

Specify retention expectations and how signed copies will be stored and produced for audits or regulatory inquiries.

Timing and common deadline considerations

Certain actions tied to authorizations have timing implications; set and track these dates to ensure valid authority during transactions.

Provide On Request:

Supply the document to banks or vendors upon initial contact

Effective Date Entry:

State MM/DD/YYYY to confirm when authority begins

Expiration or Review:

Set explicit end date or periodic review interval

Revocation Notice:

Allow processing time; banks may require up to 30 days

Recordkeeping Deadline:

Retain executed copies per internal retention policy

Key milestones from drafting to accepted use

Track these sequential milestones to ensure the authorization becomes effective and is accepted by counterparties without interruption.

01

Draft Approval

Finalize language and obtain internal board or owner sign-off

02

Execution

Collect signatures, notarize if required, and date the document

03

Distribution

Send certified copies to banks, vendors, and internal records

04

Ongoing Validation

Confirm counterparties continue to accept authority and update as needed

How this document differs from similar authority forms

Compare common authority documents to choose the correct instrument for the intended power and longevity.

Criteria	Business Authorization Document	Power of Attorney
Scope	narrow, task-specific	broad or general authority
Notarization	sometimes required	often required for durable poa
Durability	usually revocable	can be durable and survive incapacity
Formal Approval	corporate resolution often needed	individual grant formalities

eSignature vendor comparison for executing Business Authorization Documents

Basic pricing and capability differences among common eSignature providers to consider when choosing a platform for execution and storage.

	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 (Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of authorizations in practice

Practical examples show how different organizations use a Business Authorization Document to delegate authority and streamline operations.

Optica Ventures LLC

Optica used an authorization to delegate transaction signing for investment closings.

The agent executed documents remotely.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Xerox (NetSuite operations)

Xerox created role-based authorizations integrating with ERP workflows.

Signers authenticated via system integration.
"airSlate SignNow provides us with the flexibility needed to get the right signatures on the right documents, in the right formats."

Frequently asked questions about Business Authorization Documents

Answers to common questions about validity, electronic signing, notarization, and revocation to help avoid processing delays or rejection.

Need help? Contact support

Can this document be signed electronically?
Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.
Is notarization always required?
Not always. Notarization depends on counterparty requirements and state law; real property or certain bank actions commonly require notarized acknowledgements.
Who may sign on the company’s behalf?
An authorized officer, manager, or person named in a corporate resolution may sign. Verify internal bylaws or operating agreement to confirm delegation authority.
How do I revoke an authorization?
Issue a written revocation signed by an authorized officer, distribute it to prior recipients, and follow any counterparty procedures; allow processing time for banks or registries.
What supporting documents should I attach?
Attach corporate resolutions, meeting minutes, or incumbency certificates when requested by banks or vendors to verify the signer’s authority and corporate approval.
How long should executed documents be retained?
Retain executed authorizations per industry rules and federal minimums: at least 3 years for tax records and 6 years for HIPAA-regulated materials when applicable.

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