Is an electronic signature legally binding?

Yes in most commercial contexts if the signature shows intent, consent to transact electronically, attribution to the signer, and an ability to retain the record. Federal ESIGN (15 U.S.C. ch. 96) and state UETA (1999) establish equivalence, subject to enumerated exceptions such as wills and certain court filings.

What if the EIN or TIN is incorrect?

An incorrect TIN can trigger backup withholding and IRS penalties. Correct the form promptly and, if necessary, provide a corrected information return; consider requesting a corrected W-9 to obtain the correct TIN.

Does an e-signed template require notarization?

Not generally; some documents or jurisdictions require notarization or witnesses. If notarization is required, use an accepted method (in-person or RON where permitted) and retain the notary record.

How do I confirm the signer is authorized?

Request corporate resolutions, officer certificates, or power-of-attorney documents. Verifying via public filing records and matching signatory title to corporate records reduces risk of unauthorized execution.

What file format should I use for submission?

Use flattened, tamper-evident PDFs for signed records. PDFs preserve layout, embed audit trails, and are widely accepted by counterparties and regulatory reviewers.

Upload or validation errors — what to check?

Confirm required fields are complete, file size and format meet recipient limits, and any conditional fields are filled. If eSignature authentication fails, verify the signer’s email and authentication method (SMS code or KBA) and retry.

Electronic Signature
Templates
Miscellaneous
Business Characteristics Template

Business Characteristics Template

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

BUSINESS CHARACTERISTICS TEMPLATE

Parties and Identification

Company Name: Counterparty Name:

This Business Characteristics Template (the "Template") is provided pursuant to the mutual agreements of Company Name: and Counterparty Name: (together, the "Parties") to record factual and covenant information about the business and to govern the exchange of such business characteristics as described in this Template.

WHEREAS, the Parties intend that the information collected in this Template will be relied upon for commercial evaluations, diligence, contracting, and ongoing compliance; and

WHEREAS, the Parties agree that the representations, covenants and disclosures herein are material and intended to survive termination of any preliminary commercial discussions and, where executed, form part of the operative agreement between the Parties.

Corporate and Entity Details

DBA / Trade Name: Entity Type (check all that apply):

Corporation
Limited Liability Company (LLC)
Partnership
Sole Proprietorship
Other:

State or Jurisdiction of Formation: Date of Formation: Principal Place of Business: Federal Tax ID / EIN: NAICS / SIC Code: Fiscal Year End:

Ownership, Management and Human Resources

Ownership Structure (major owners and percentage): Management and Key Personnel: Number of Employees: Annual Revenue (most recent fiscal year):

Assets, IP and Material Contracts

Material Tangible Assets (summary): Intellectual Property (patents, trademarks, copyrights): Material Agreements and Licenses (summary):

Legal, Compliance and Insurance

Pending or Threatened Litigation: Regulatory or Environmental Concerns: Insurance Coverage (types and limits):

Scope of Work

The Parties agree the scope of services, deliverables and responsibilities to be provided by the Party identified in the applicable commercial agreement shall be described below. Such scope, when incorporated into a separate Statement of Work, will control to the extent inconsistent with this Template.

Scope of Work (detailed description):

Payment Terms

Payment for services and deliverables described in the Scope of Work shall be made in accordance with the terms below. The receiving Party shall submit invoices that identify work performed, applicable rates, and applicable taxes.

Total Amount Payable: Payment Schedule: Late Payment Fee:

Term and Termination

The term of this Template shall commence on the Effective Date and continue until the End Date unless earlier terminated as provided below. Termination shall not relieve either Party of obligations accrued prior to termination.

Effective / Start Date: End Date (if any): Notice Period to Terminate (days): Termination for Cause (brief description):

Confidentiality

Each Party shall treat as confidential all non-public, business or technical information disclosed by the other Party that is either designated as confidential or that reasonably should be understood to be confidential given the nature of the information and circumstances of disclosure ("Confidential Information"). Confidential Information shall not include information that (i) is or becomes publicly known through no breach of this obligation; (ii) is rightfully received from a third party without restriction; (iii) was known prior to disclosure; or (iv) is independently developed without use of the disclosing Party’s Confidential Information.

Each receiving Party shall (a) use Confidential Information solely for the purposes contemplated by this Template, (b) restrict disclosure to those employees, agents or advisors with a need to know and who are bound to confidentiality obligations at least as protective as those herein, and (c) exercise at least the same degree of care to protect Confidential Information as it uses to protect its own confidential information, but no less than reasonable care.

Governing Law; Remedies

This Template shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The Parties acknowledge that breach of confidentiality or unauthorized use of intellectual property may cause irreparable harm for which monetary damages may be inadequate and that equitable relief may be appropriate in addition to any other remedies.

Representations, Warranties and Entire Agreement

Each Party represents and warrants that (a) it is duly organized and validly existing under applicable law, (b) it has the corporate or other capacity and authority to enter into and perform its obligations under this Template, and (c) the information and statements provided in this Template are true and accurate to the best of its knowledge as of the date signed below.

This Template, together with any executed Statement(s) of Work or exhibits expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, negotiations and understandings, whether written or oral, relating to such subject matter. Any amendment to this Template must be in writing and signed by authorized representatives of both Parties.

Acknowledgments and Certifications

Authorized Representative Certifies:

The information provided in this Template is true, complete and accurate to the best of my knowledge.
I am authorized to provide this information and to bind the entity I represent.

The Parties agree that any material misrepresentation in this Template shall be deemed a breach and may give rise to termination rights and remedies under applicable law.

Company:

By:

Date:

Counterparty:

By:

Date:

What the Business Characteristics Template Is and When It’s Used

The Business Characteristics Template is a standardized form that captures a company’s legal identity, ownership structure, operational profile, and regulatory attributes for onboarding, contracting, licensing, or vendor due diligence. It centralizes business name and tax identifiers, legal entity type, principal contacts, primary operations, licenses and registrations, and signing authority so third parties can evaluate risk, tax reporting obligations, and contractual capacity efficiently.

Why a Complete Business Characteristics Template Matters

A complete template reduces onboarding delays, supports accurate tax and compliance checks, and documents authority for signing. Properly completed templates are broadly enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes (1999) where adopted, subject to enumerated statutory exceptions.

Who Typically Prepares or Requests This Template

Organizations and individuals across functions rely on this form to verify business details before contracting or regulatory filings.

Procurement and vendor management teams that need supplier legal and financial details for onboarding.
Finance, tax, and accounts payable departments that require EIN/TIN and remittance instructions for reporting.
Compliance, legal, and licensing groups that must confirm registrations, insurance, and signatory authority.

The exact audience varies by use case, but accuracy and an authorized signer are constant requirements.

Core Sections to Include in a Professional Template

A well-structured Business Characteristics Template groups related items so reviewers can find entity, ownership, financial, and compliance information quickly.

Entity Identity

Legal business name, DBA names, state of formation, and registration numbers; this ensures the correct legal party is identified for contracts and filings.

Tax Identifiers

EIN or SSN for sole proprietors and backup withholding status; accurate TINs prevent reporting errors and backup withholding triggers.

Ownership Structure

Business type (LLC, Corp, Partnership, Sole Proprietor), ownership percentages, and beneficial owners required for compliance screening.

Operational Profile

Primary NAICS/SIC codes, principal business activities, primary location, and typical contract types to assist risk and regulatory classification.

Licenses & Compliance

List of professional, state, or federal licenses, insurance coverage and policy numbers, and relevant regulatory registrations.

Contacts & Authority

Principal contact, billing contact, and authorized signatories with titles and evidence of signing authority for contract execution.

Sensitive Data Elements to Protect

Tax Identifiers: EIN/SSN

Bank Details: Account routing numbers

Personal Data: Home addresses of owners

Licenses: Professional license numbers

Insurance: Policy numbers

Signatures: Executed signature images

Step-by-Step: Completing the Business Characteristics Template

Follow these steps to gather, verify, and submit the template with an authorized signature to minimize review cycles.

01

Gather Documents: Collect formation documents, EIN confirmation, and owner IDs.
02

Complete Fields: Enter names, addresses, business type, and tax numbers accurately.
03

Verify Accuracy: Cross-check names and EINs against IRS records or state filings.
04

Sign and Submit: Have an authorized signer sign, date, and return per recipient instructions.

How to Configure an Online Version for Repeat Use

Set up a reusable digital workflow with fields and validations to speed onboarding and reduce errors.

Field	Configuration
Required Fields	Mark EIN, legal name, and signatory as required
Validation Rules	Use TIN format checks and MM/DD/YYYY for dates
Conditional Logic	Show license fields only for regulated business types
Notifications	Send reminders after 7 and 14 days

Where to Submit the Completed Template

Submission destinations depend on the form’s purpose: internal procurement, external counterparty, or regulatory filing. Choose the right recipient and method.

Internal Records: Upload to vendor management or ERP for onboarding.
Counterparty: Send to contracting or procurement contacts for review.
Regulatory Agencies: File copies with state licensing bodies when required.
Record Archive: Store a signed PDF in secure document storage.

Distribution Options and Technical Considerations

Choose a distribution channel that preserves integrity, supports required authentication, and meets retention rules.

Supported Formats: PDF, Word DOCX
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS code, or stronger methods

Typical Timing and Update Expectations

Timing depends on the requesting party and use case; plan for both initial submission and periodic updates.

Onboarding Response:

Provide within 10–30 business days of request

Contract Execution:

Complete before signing or contract effective date

Annual Review:

Update company and ownership details at least annually

Material Changes:

Report changes within 10 business days to counterparties

Retention After Termination:

Keep originals for the contract term plus at least 3 years

Common Preparation Errors to Avoid

Providing trade names instead of the legal entity name, which delays verification and contract execution.
Entering an incorrect EIN or TIN that triggers backup withholding and tax-reporting rework.
Failing to list required state or professional licenses, causing regulatory noncompliance or contract rejection.
Using unsigned or non‑authorized signatories, which can void the document or require re-execution.

Potential Consequences of Errors or Misrepresentation

Tax Penalties: Backup withholding 24%

Information Return Penalties: IRC §6721 penalties for incorrect forms

Contract Delay: Execution postponed pending corrected data

Regulatory Fines: State licensing sanctions possible

Civil Liability: Misrepresentation may lead to damages

Void Agreements: Unauthorized signatures can void contracts

Real-World Examples of the Template in Use

These customer examples illustrate how organizations use the template to speed onboarding and ensure compliance.

Optica Ventures — COO

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

Fast adoption across our deal teams enabled consistent supplier onboarding.
Optica used a standardized template to reduce review time and ensure each counterparty provided EIN, formation documents, and an authorized signature, which cut follow-ups by more than half.

Martin Properties — Founder

I can process and execute all of these documents online with 100% compliance and built-in security.

Mobile signing supported closing activity on the go.
Martin Properties replaced paper workflows with a digital template that aggregated ownership, tax, and licensing details, enabling remote closings and quicker lease execution.

Who Usually Signs and What Authority Looks Like

Authorized Officer

Chief executive officers, presidents, or other officers who sign on behalf of the legal entity typically provide authority. Documentation can include corporate resolutions, board minutes, or a notarized officer certificate confirming signing authority and scope.

Attorney-in-Fact

An individual with a durable power of attorney or corporate agent may sign when authority is delegated. Provide the executed POA or delegation instrument and ensure it is current and adequate for the transaction.

Typical eSignature Vendor Pricing and Feature Snapshot

Compare typical starting prices and key features for common eSignature vendors; signNow is listed first per the comparison format.

	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	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Yes	Yes	No	No

Frequently Asked Questions and Common Troubleshooting

Answers to frequent questions about validity, execution, and common problems when completing or submitting the template.

Need help? Contact support

Is an electronic signature legally binding?
Yes in most commercial contexts if the signature shows intent, consent to transact electronically, attribution to the signer, and an ability to retain the record. Federal ESIGN (15 U.S.C. ch. 96) and state UETA (1999) establish equivalence, subject to enumerated exceptions such as wills and certain court filings.
What if the EIN or TIN is incorrect?
An incorrect TIN can trigger backup withholding and IRS penalties. Correct the form promptly and, if necessary, provide a corrected information return; consider requesting a corrected W-9 to obtain the correct TIN.
Does an e-signed template require notarization?
Not generally; some documents or jurisdictions require notarization or witnesses. If notarization is required, use an accepted method (in-person or RON where permitted) and retain the notary record.
How do I confirm the signer is authorized?
Request corporate resolutions, officer certificates, or power-of-attorney documents. Verifying via public filing records and matching signatory title to corporate records reduces risk of unauthorized execution.
What file format should I use for submission?
Use flattened, tamper-evident PDFs for signed records. PDFs preserve layout, embed audit trails, and are widely accepted by counterparties and regulatory reviewers.
Upload or validation errors — what to check?
Confirm required fields are complete, file size and format meet recipient limits, and any conditional fields are filled. If eSignature authentication fails, verify the signer’s email and authentication method (SMS code or KBA) and retry.

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