Can this letter be signed electronically?

Yes. Electronic signatures meet legal validity under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature shows intent, consent, attribution, and retention ability; confirm recipient acceptance and any industry exceptions.

Is notarization always required?

Not always. Many recipients accept an ordinary signed letter, but banks or government filings may require notarization or RON depending on state or institutional policy; verify recipient requirements in advance.

How do I revoke the authorization?

Revoke in writing, signed by an authorized officer, and deliver to the recipient; include an effective revocation date and keep proof of delivery to prevent continued reliance on the prior authorization.

What happens if names differ from corporate records?

Name mismatches can lead recipients to refuse acceptance. Use exact legal names and, when necessary, attach supporting corporate documents (incorporation certificate, resolution) to prove authority.

Should I include a corporate resolution?

Include a board or officer resolution when the recipient requires confirmation of delegated authority; this is common for significant financial powers and third-party account access.

How should I store the executed letter?

Retain the signed document and any e-signature audit trail in a secure records system for the applicable retention period; follow IRS, HIPAA, or industry-specific retention rules as required.

Electronic Signature
Templates
Miscellaneous
Business Authorized Letter

Business Authorized Letter

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

BUSINESS AUTHORIZED LETTER

Document Date:

Authorizing Company Company Address Authorizing Representative Authorized Party (Recipient of Authorization)

RECITALS

WHEREAS, Authorizing Company named above is duly organized and in good standing and has full corporate power and authority to grant this authorization; and

WHEREAS, Authorizing Representative is authorized by the Authorizing Company to designate an authorized party to perform specified actions on behalf of the Authorizing Company; and

WHEREAS, the parties desire to set forth the scope, duration and limitations of that authorization in this Business Authorized Letter effective as of .

AUTHORIZATION

Authorizing Company hereby appoints and authorizes Authorized Party to act on its behalf within the scope set forth below. This authorization is limited and revocable as provided in the Term and Termination section. Authorized Party shall act in accordance with the limitations and instructions provided in this letter and shall not exceed the authority expressly granted herein.

SCOPE OF AUTHORIZATION

Describe authorized duties and limitations

AUTHORIZED ACTIONS

The Authorized Party is expressly authorized to perform the following actions as specifically checked below. Any action not checked is not authorized.

Sign contracts and agreements on behalf of Authorizing Company
Receive and endorse payments due to Authorizing Company
Access and manage specified bank or merchant accounts
Communicate with third parties, suppliers or customers as necessary to perform duties

If actions are limited, describe limitations

PAYMENT TERMS

If any fee or compensation is payable in connection with this authorization, the parties agree as follows:

Authorization Fee / Amount Payment Schedule / Terms Late Payment Fee

TERM AND TERMINATION

This authorization shall commence on and shall terminate on unless earlier revoked in accordance with this section.

Notice Period for Termination

Either party may terminate this authorization for cause upon written notice specifying the basis for termination. Termination shall not affect obligations or rights accrued prior to the effective date of termination.

CONFIDENTIALITY

The Authorized Party shall treat as confidential all non-public information obtained in connection with the performance of authorized duties and shall not disclose such information except as required to perform the authorized duties or as required by law. Confidential information shall not be used for any purpose other than as expressly permitted in this letter.

LIMITATION OF LIABILITY

Except for willful misconduct or gross negligence, neither party shall be liable to the other for indirect, incidental, consequential, or punitive damages arising from the exercise of the authority granted herein. Each party's total liability under this authorization shall be limited to direct damages proven and incurred.

GOVERNING LAW

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

ENTIRE AGREEMENT

This document constitutes the entire agreement between the parties regarding the subject matter herein and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral, relating to the authorization granted. Any amendment must be in writing and signed by both parties.

CERTIFICATION

The undersigned certify that they are duly authorized to execute this Business Authorized Letter on behalf of the parties named, that the information provided is true and correct, and that the authorization granted is valid under the corporate powers and governing instruments of the Authorizing Company.

Authorizing Party - Printed Name:

By:

Date:

Authorized Party - Printed Name:

By:

Date:

What a Business Authorized Letter Is and When to Use It

A Business Authorized Letter is a written authorization that a company issues to empower an individual or third party to act on behalf of the business for a defined purpose. Common uses include banking transactions, vendor negotiations, license or permit filings, and custodial access to records. The letter specifies the scope of authority, effective dates, and any limits or conditions. Properly completed, signed, and retained, the letter documents delegation of authority and creates an evidentiary record for internal controls, external counterparties, and regulators.

Why a Clear Business Authorized Letter Matters

A concise, well-structured letter reduces operational friction, clarifies who may act for the company, and creates documentary proof of delegated authority. When executed correctly it supports compliance, auditability, and dispute resolution while aligning with federal e-signature laws such as the ESIGN Act and state UETA provisions when electronic signing is used.

Who Typically Issues and Receives This Letter

Organizations of all sizes use a Business Authorized Letter to delegate specific powers without broader corporate resolutions.

Banks and finance teams use it to permit an employee or contractor to open accounts or collect funds.
Vendors and service providers accept it to verify a representative can sign contracts or approve invoices.
Regulatory or licensing authorities receive it to confirm an agent may file permits or respond to inquiries.

Typical Signers and Authorized Representatives

Authorized Officer

Chief executive, CFO, or other officer listed in corporate records who has capacity to delegate authority and certify corporate actions in writing for external counterparties.

Appointed Agent

An employee, contractor, or third-party agent authorized to act within the letter’s scope; typically requires a signature and may require notarization depending on recipient requirements.

Essential Elements to Include in the Letter

A professional Business Authorized Letter is specific, dated, and signed; it clearly identifies parties and limits to reduce ambiguity and legal risk.

Company Identity

Full legal name, business type (LLC, corporation), and Employer Identification Number or state registration to ensure accurate corporate identification.

Authorized Person

Full legal name, title, and contact information of the individual receiving authority; include government ID details if required by the recipient.

Scope of Authority

Clear, itemized description of permitted actions (sign documents, collect payment, file permits) and any explicit exclusions to limit overreach.

Effective Dates

Start and end dates or an event-based termination condition to define the temporal boundaries of the authorization.

Signatures

Signature block for the authorized company signatory with printed name, title, and date; include signature of the authorized agent if acceptance is required.

Authentication

Notarization, witness lines, or e-signature audit trail details when recipient or law requires additional verification.

Required Information at a Glance

Company Name: Full legal name

EIN or Reg.: EIN or state registration

Authorized Person: Full name and title

Scope: Precise permitted actions

Dates: Effective and expiry

Signatory Info: Name, title, signature

Step-by-Step: Prepare and Execute the Letter

Follow these sequential steps to create, validate, and deliver a Business Authorized Letter with minimal rework.

01

Draft the Letter: Define parties, scope, and dates in plain language.
02

Obtain Internal Approval: Confirm corporate authority and any board or managerial sign-off required.
03

Sign and Authenticate: Collect signature(s) and notarize if recipient requires.
04

Deliver and Record: Send to recipient and file a certified copy in corporate records.

Configuring an Online Completion Workflow

Set up consistent fields and authentication rules for repeatable, auditable authorization letters.

Field	Configuration
Signature Field	Require signer name, email, and timestamp
Authentication	Use email link or SMS code; choose stronger methods if needed
Conditional Text	Show limitation clauses only when specific options are selected
Retention Setting	Automatically store signed PDF and audit trail

Digital Signing and Delivery Considerations

Choose a platform that preserves an auditable signature record and supports the formats your recipients accept.

File Formats: PDF and DOCX are widely accepted
Authentication Options: Email, SMS, KBA, or SSO
Integrations: CRM, ERP, and cloud storage

Where to Send or File the Executed Letter

Different recipients expect different delivery and proof methods; route accordingly to ensure acceptance.

Banking Department: Deliver an original or certified copy to the bank’s operations team
Vendor or Supplier: Email signed PDF and request receipt confirmation
Regulatory Agency: Follow agency submission rules; some require original signature
Corporate Records: Store a signed copy in the minute book or document repository

Timing, Deadlines, and Processing Expectations

Plan for internal approvals, authentication steps, and any external processing times when issuing or relying on an authorization letter.

Internal Approval Lead Time:

Allow 2–5 business days for required corporate sign-offs

Notarization Scheduling:

Allow 1–3 business days to book a notary or RON session

Recipient Processing:

Institutional processing can take 1–10 business days

Revocation Notice Period:

Specify required notice, commonly 3–30 days

Retention Start Date:

Retention begins on the signed date or effective date

Common Mistakes to Avoid

Using informal or vague language that leaves the authorized scope open to interpretation and increases dispute risk.
Failing to confirm that the recipient accepts electronic signatures, leading to rejected submissions or requests for originals.
Mismatched names or titles between the letter and corporate records, which can cause banks or vendors to refuse acceptance.
Neglecting to store the signed letter and audit trail, making it difficult to prove authorization during audits or litigation.

Risks and Consequences of an Incorrect Letter

Enforceability Risk: Authorization may be unenforceable

Financial Loss: Unauthorized transactions risk company funds

Regulatory Exposure: Noncompliance can trigger agency inquiries

Operational Delay: Recipients may refuse actions pending corrected letter

Tax Withholding: Incorrect payee instructions can trigger withholding

Litigation Cost: Disputes increase legal expenses

eSignature Provider Comparison for Executing Business Authorized Letters

Comparison of common vendor features and starting prices; signNow is listed first per platform rules and supports the standard capabilities needed for authorization workflows.

	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 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

Frequently Asked Questions and Troubleshooting

Answers to common practical and legal questions about creating, signing, and using a Business Authorized Letter.

Need help? Contact support

Can this letter be signed electronically?
Yes. Electronic signatures meet legal validity under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature shows intent, consent, attribution, and retention ability; confirm recipient acceptance and any industry exceptions.
Is notarization always required?
Not always. Many recipients accept an ordinary signed letter, but banks or government filings may require notarization or RON depending on state or institutional policy; verify recipient requirements in advance.
How do I revoke the authorization?
Revoke in writing, signed by an authorized officer, and deliver to the recipient; include an effective revocation date and keep proof of delivery to prevent continued reliance on the prior authorization.
What happens if names differ from corporate records?
Name mismatches can lead recipients to refuse acceptance. Use exact legal names and, when necessary, attach supporting corporate documents (incorporation certificate, resolution) to prove authority.
Should I include a corporate resolution?
Include a board or officer resolution when the recipient requires confirmation of delegated authority; this is common for significant financial powers and third-party account access.
How should I store the executed letter?
Retain the signed document and any e-signature audit trail in a secure records system for the applicable retention period; follow IRS, HIPAA, or industry-specific retention rules as required.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now