Can this agreement be electronically signed?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted. Ensure intent, consent, attribution, and record retention to establish validity.

Is notarization required for validity?

Not usually for basic commercial agreements, but state or third‑party requirements may require notarization for deeds, certain filings, or recordable instruments. Check jurisdictional rules before execution.

Who should sign on behalf of an entity?

An authorized representative per corporate minutes or operating agreement should sign. Verify officer/manager authority to avoid later challenges from banks or regulators.

What if a signer’s name is incorrect?

Minor typographical errors can be corrected by amendment or errata; material mismatches that affect identity may require reexecution to avoid invalidity with banks or tax authorities.

How do I change the effective date after signing?

Amend the agreement with a written amendment signed by all parties stating the new effective date. Do not alter the original executed copy unilaterally.

Where should executed copies be stored?

Retain signed PDFs with audit trails and the original if applicable. Store copies in secure document management systems with access controls and retention policies aligned to regulatory requirements.

Electronic Signature
Templates
Miscellaneous
Business Commencement Agreement

Business Commencement Agreement

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

Business Commencement Agreement

Recitals

WHEREAS, Client Name: and Service Provider Name: (each a "Party" and together the "Parties") desire to set forth the terms under which the Service Provider will commence business operations and provide the services described below; and

WHEREAS, the Parties wish to allocate responsibilities, payment obligations, and protections in connection with commencement activities and initial operations effective as of Effective Date: .

Scope of Work

Detailed Scope of Work

Payment Terms

Compensation: Client shall pay Provider the total amount of $ for the services described in this Agreement. Such amount is exclusive of applicable taxes unless otherwise stated.

Payment schedule and milestones

Invoicing and due date: Provider shall submit invoices to Client in accordance with the schedule above. Unless otherwise agreed in writing, payment is due within days of receipt of invoice.

Late payment: Any undisputed amount not paid when due shall incur a late fee equal to the greater of (i) % per month on the unpaid balance, or (ii) $ . Such late fee is in addition to any recovery costs, including reasonable attorney fees, incurred by the non-defaulting Party.

Term and Termination

Term: This Agreement commences on Start Date: and continues until End Date: unless earlier terminated in accordance with this Agreement.

Termination for convenience: Either Party may terminate this Agreement without cause by providing written notice at least days prior to the effective termination date. Termination shall not relieve either Party of obligations accrued prior to termination.

Termination for cause: Either Party may immediately terminate upon material breach by the other Party if such breach remains uncured for a period of thirty (30) days after written notice specifying the breach.

Confidentiality

Definition: "Confidential Information" means any non-public information disclosed by one Party ("Disclosing Party") to the other ("Receiving Party") in connection with this Agreement, whether oral, written, or electronic, including business plans, financial information, trade secrets, client lists, and technical information.

Obligations: The Receiving Party shall (i) hold Confidential Information in strict confidence, (ii) use Confidential Information solely to perform obligations under this Agreement, and (iii) restrict disclosure to its employees, agents, or subcontractors who have a need to know and are bound by confidentiality obligations no less protective than those herein.

Exceptions and return: Confidential Information does not include information that is (a) publicly known through no fault of the Receiving Party, (b) rightfully received from a third party without breach of obligation, or (c) independently developed. Upon termination or written request, the Receiving Party shall return or destroy Confidential Information and provide written certification of such action.

Confidentiality duration

Representations, Warranties and Indemnification

Each Party represents and warrants that it has authority to enter this Agreement and to perform its obligations. Provider warrants that services will be performed in a professional and workmanlike manner consistent with industry standards. Each Party agrees to indemnify and hold harmless the other from third-party claims arising from its gross negligence, willful misconduct, or material breach of this Agreement, except to the extent caused by the indemnified Party's own negligence.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Venue for any dispute arising hereunder shall be in the state or federal courts located within that state.

Entire Agreement and Amendments

Entire Agreement: This Agreement, together with any attached exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior negotiations, understandings and agreements.

Amendments: No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties.

Notices

Client address for notices Provider address for notices

Miscellaneous

Relationship of Parties: The Provider is an independent contractor. Nothing in this Agreement creates a partnership, joint venture, or agency relationship between the Parties. Provider is solely responsible for all taxes, withholdings and other statutory obligations arising from payments made under this Agreement.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

CLIENT

Printed Name:

By:

Date:

SERVICE PROVIDER

Printed Name:

By:

Date:

What a Business Commencement Agreement Covers

A Business Commencement Agreement is a written contract that documents the parties, effective date, and initial obligations required to begin a commercial enterprise or a specific operational phase. It typically sets the scope of work, capital contributions or resource commitments, roles and responsibilities, and any conditions precedent to starting operations. The agreement clarifies who will act on behalf of the business, how decisions are made during the initial period, and how early disputes or delays will be handled, providing an operational roadmap and evidence of intent for legal and financial purposes.

Why this agreement matters at startup or launch

A clear commencement agreement reduces ambiguity about who does what, when obligations begin, and how initial capital or services are contributed, helping prevent disputes and enabling predictable operations.

Who commonly prepares and signs this agreement

Typical creators and signers include founders, managing partners, early investors, and service providers responsible for initial operations.

Founders and co‑founders — document ownership splits, capital, and operational duties for day‑one activities.
Investors and equity holders — set conditions precedent for funding tranches and reporting obligations.
Vendors and contractors — lock in delivery timing, milestones, and acceptance criteria for launch services.

The right mix of signers depends on the business structure and whether outside financing, regulatory filing, or licensed services are involved.

Step-by-step: completing the Business Commencement Agreement

Follow these four practical steps to finish and distribute the agreement efficiently.

01

Draft: Assemble parties, scope, contributions, and effective date in one document.
02

Review: Have legal and tax advisors check material clauses and compliance items.
03

Sign: Execute using agreed method: wet signature, RON, or eSignature per parties' consent.
04

Distribute: Send final signed copies to all parties and retain certified records.

Configure a digital workflow for this agreement

Use a simple field and routing setup to minimize signer friction and ensure recordkeeping.

Field	Configuration
Signature Block	One signature field per party; include date and printed name fields
Order	Sequential or parallel routing depending on who must sign first
Authentication	Email link plus optional SMS code or KBA for high‑risk signers
Retention	Attach audit trail and final PDF to document record

Technical and platform considerations for digital completion

Choose a platform that supports PDF/DOCX upload, audit trails, and secure signer authentication.

File types: PDF, DOCX, and fillable forms supported
Integrations: CRM and cloud storage integrations help automate records
Authentication: Email link, SMS code, or stronger methods

For regulated industries, ensure the provider supports required compliance frameworks (for example HIPAA with a BAA) and provides an auditable certificate of completion and tamper‑evident signed PDFs.

Typical eSubmission flow for the agreement

A standard eight‑step electronic workflow reduces manual handoffs and preserves a complete audit trail.

Upload: Upload the finalized draft document to the signing platform
Place Fields: Add signature, date, and required input fields
Invite Signers: Send email or link to each signer with clear instructions
Complete: Signers authenticate, sign, and receive the executed copy

Core clauses to include in a professional commencement agreement

Include these six components to establish clear expectations and reduce post‑launch disputes.

Effective Date

Defines when the agreement takes effect and triggers obligations; tie this to milestones such as funding receipt or regulatory approvals to avoid premature performance.

Parties

Precisely identify each party with legal names and roles; include any affiliate or related‑party definitions to avoid later identity disputes.

Scope of Commencement

Describe specific activities that constitute commencement, including deliverables, minimum performance, and acceptance criteria for the launch phase.

Capital and Resources

Set out monetary contributions, in‑kind resources, payment timing, and remedies for missed contributions to preserve liquidity during startup.

Operational Responsibilities

Allocate management duties, reporting obligations, decision rights, and escalation paths for operational or compliance issues after commencement.

Termination and Exit

State termination triggers, wind‑down processes, and return of confidential information to simplify dissolution or restructuring.

Security and compliance data to record

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES‑256

Audit trail: IP, timestamp, action log

HIPAA support: BAA required

Standards: SOC 2 Type II

Accessibility: WCAG 2.0 AA

Consequences of errors or incomplete agreements

Enforceability risk: Agreement may be challenged

Funding delays: Capital tranches may not release

Tax exposure: Misreported capital contributions

Regulatory fines: Industry noncompliance penalties

Operational delay: Launch deadlines missed

Liability: Personal or entity claims

Common preparation mistakes to avoid

Using informal or ambiguous language for capital contributions creates disputes about whether a contribution was made and when it was due.
Failing to name an authorized representative can lead to signatures being rejected by banks, escrow agents, or regulators.
Omitting milestones or acceptance criteria makes it difficult to determine if commencement conditions have been satisfied.
Not aligning the effective date with funding or permit approvals can create premature obligations and unintended liabilities.

Vendor pricing snapshot for eSignature support

Comparison of starting prices and key features for common eSignature vendors; signNow is listed first as the platform option.

	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	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Business Commencement Agreements

Answers to common questions about eSigning, notarization, retention, and corrective steps.

Need help? Contact support

Can this agreement be electronically signed?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted. Ensure intent, consent, attribution, and record retention to establish validity.
Is notarization required for validity?
Not usually for basic commercial agreements, but state or third‑party requirements may require notarization for deeds, certain filings, or recordable instruments. Check jurisdictional rules before execution.
Who should sign on behalf of an entity?
An authorized representative per corporate minutes or operating agreement should sign. Verify officer/manager authority to avoid later challenges from banks or regulators.
What if a signer’s name is incorrect?
Minor typographical errors can be corrected by amendment or errata; material mismatches that affect identity may require reexecution to avoid invalidity with banks or tax authorities.
How do I change the effective date after signing?
Amend the agreement with a written amendment signed by all parties stating the new effective date. Do not alter the original executed copy unilaterally.
Where should executed copies be stored?
Retain signed PDFs with audit trails and the original if applicable. Store copies in secure document management systems with access controls and retention policies aligned to regulatory requirements.

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