Is an electronic statement legally binding?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures and records are generally legally binding when intent, consent, attribution, and retention requirements are met.

When do I need a notarized statement?

Only when the recipient requests notarization or state law requires it for the underlying transaction; verify the recipient’s requirements before notarizing as needs vary by state and use case.

What if the signer name does not match corporate records?

A mismatch triggers verification requests and may cause backup withholding or account holds; supply certified formation documents or a corporate resolution showing the signer’s authority.

Can a third party accept a scanned signed PDF?

Often yes, provided the signature meets ESIGN/UETA criteria and the recipient accepts electronic records; some transactions or jurisdictions still require original or notarized documents.

How should I prove signing authority?

Provide a corporate resolution, board minutes, or operating agreement that names the signer and grants execution authority; attach certified copies when requested.

How long should executed statements be retained?

Retain per the regulatory baseline: at least 3 years for tax‑relevant records (IRC §6501(a)), 6 years for HIPAA‑covered health records (45 CFR §164.530(j)), and longer where state law requires.

Electronic Signature
Templates
Miscellaneous
Business Company Statement

Business Company Statement

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

Business Company Statement

Statement Issuer (Company): Registered Number:

Principal Place of Business:

Statement Recipient (Receiving Party): Contact Address:

Recitals

WHEREAS, the Company is duly organized and validly existing under the laws of and is authorized to execute this Business Company Statement; and

WHEREAS, the Company desires to make certain representations and commitments to the Recipient concerning the Company's organization, authority, and the performance of specified services, and the Recipient relies on this written statement in its dealings with the Company; and

WHEREAS, the parties intend that this Business Company Statement shall define the scope of the Company's deliverables, payment arrangements, confidentiality obligations, and other material terms governing the relationship between the parties.

Scope of Work

Description of Services and Deliverables

Payment Terms

Total Compensation Amount:

Payment Schedule

Late Payment Fee: The Recipient shall pay interest on overdue amounts at the rate of , or the maximum rate permitted by applicable law if lower. The obligation to pay late fees is in addition to any other remedies available to the Company.

Term and Termination

Effective Date: Term End Date:

Either party may terminate this Business Company Statement for convenience upon providing written notice no fewer than days to the other party. Termination for material breach shall be effective immediately upon written notice if the breaching party fails to cure within thirty (30) days after receipt of notice of breach.

Confidentiality

The parties acknowledge that, in the course of performance, one party may disclose Confidential Information to the other. "Confidential Information" means non-public information disclosed in any form that is designated as confidential or that a reasonable person would understand to be confidential given the nature of the information and the circumstances of disclosure.

The receiving party shall: (a) hold Confidential Information in strict confidence and use no less than a reasonable standard of care to protect it; (b) use Confidential Information solely for the purposes of performing this Statement; and (c) not disclose Confidential Information to any third party except as required by law or with prior written consent. These obligations shall survive termination of this Statement for a period of three (3) years, except with respect to trade secrets, which shall be protected for as long as they remain trade secrets under applicable law.

The parties acknowledge and agree to the confidentiality obligations set forth above.

Representations and Warranties

Each party represents and warrants that it has the full corporate power and authority to enter into and perform this Business Company Statement, that the execution and delivery of this Statement have been duly authorized, and that this Statement constitutes a legal, valid and binding obligation of such party enforceable in accordance with its terms.

Governing Law

This Business Company Statement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located within that State for any disputes arising under or in connection with this Statement.

Entire Agreement

This Business Company Statement, together with any exhibits or attachments expressly incorporated herein, 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. No amendment or modification of this Statement shall be effective unless in writing and signed by authorized representatives of both parties.

Corporate Information and Certifications

Entity Type (check one):

Corporation LLC Partnership Sole Proprietorship Other:

State or Country of Formation Primary Authorized Representative Representative Title Additional Remarks

Certification

The undersigned certifies under penalty of perjury that the information contained in this Business Company Statement is true, correct and complete to the best of the undersigned's knowledge, and that the undersigned is authorized to execute this Statement on behalf of the party identified above.

Company (Issuer) Name:

By:

Date:

Recipient (Receiving Party) Name:

By:

Date:

What a Business Company Statement Is and when it’s used

A Business Company Statement is a formal, written declaration that verifies a company’s legal identity, authorized representatives, tax status, and key contact information for third parties such as banks, vendors, and government agencies. Typical uses include vendor onboarding, account opening, contract execution, and proving authority to sign. The statement may be a stand‑alone form, an attachment to a contract, or a cover letter accompanying corporate documents and may require signature, notarization, or witness verification depending on the recipient’s requirements.

Why a clear Business Company Statement matters

A precise statement reduces onboarding delays, supports accurate tax and banking records, and establishes who can sign on behalf of the company. Clear identification of signers and supporting documents lowers the risk of rejected requests or backup withholding.

Who typically prepares and requests this statement

Organizations on either side of a commercial relationship commonly prepare or request a Business Company Statement to confirm identity and authority.

Vendor onboarding teams and procurement departments verifying counterparty legitimacy and payment details.
Bank compliance and commercial account teams confirming signatory authority for account opening and ACH setup.
Legal and contracting teams requesting corporate officer affirmation before executing agreements or amendments.

The recipients use the statement to verify legal status, apply contract terms, or validate tax reporting and payment routing.

Core elements to include in a professional statement

A Business Company Statement should be concise and structured so third parties can quickly confirm identity and authority. Include corporate identifiers, signer authority, tax information, effective dates, and required attachments to avoid downstream friction.

Company Identity

Legal entity name, type (LLC, C corp), state of formation, and registration number where applicable.

Authorized Signer

Full name, job title, role (e.g., CEO, CFO, Authorized Officer) and a short description of signing authority.

Tax Details

Federal Taxpayer Identification Number (EIN) and statement of tax classification where required.

Effective Dates

Statement effective date and any expiration or review schedule for the authorization.

Supporting Documents

Attach articles of organization/incorporation, corporate resolution, or operating agreement as evidence of authority.

Signature Block

Signed and dated by the authorized party; include printed name and title and any witness or notary acknowledgements.

Required data elements at a glance

Company Name: Exact legal name

Entity Type: LLC, Corporation, Partnership

Formation State: State of incorporation

EIN: Employer Identification Number

Signer Name: Authorized representative

Signer Title: Job title and role

Step-by-step: completing and delivering the statement

Follow a consistent sequence: gather records, draft the statement, attach supporting documents, obtain signatures, and deliver to the requester with verification data.

01

Gather Records: Locate articles, resolutions, and EIN confirmation.
02

Draft Statement: Populate fields and state signer authority clearly.
03

Sign and Notarize: Obtain required signatures and notary if requested.
04

Send to Requester: Deliver via secure channel and retain a copy.

Configuring an online completion workflow

When automating, set templates and authentication once so users follow the same validated process for every statement.

Template	Create a reusable template with locked fields for legal names and EIN.
Conditional Fields	Show notary or witness fields only when required by recipient.
Signer Authentication	Use email+SMS or KBA for higher assurance where needed.
Reminders	Enable automatic reminders for unsigned statements.
Retention Settings	Store completed copies in compliance with retention policy.

Typical destinations and routing for a completed statement

Decide where the recipient expects the statement and choose the matching delivery and verification path to avoid rejection.

Bank or Financial Institution: Send with corporate resolution for account opening or ACH setup.
Vendor or Client: Attach to onboarding packets and contract execution files.
Government Agency: Include with filings that require proof of authority or tax identity.
Internal Records: Store executed copies in the corporate minute book or secure file store.

Sharing and signing methods to consider

Choose distribution and signing methods based on recipient security and legal needs.

Email Delivery: Simple, widely accepted for low-risk recipients
Secure Link: One-time links reduce tampering and allow access control
API Integration: Automates delivery into CRM or ERP systems

Integration and post-delivery handling

Consider automatic archival, audit trails, and integrations (CRM, ERP, cloud storage) to maintain a verifiable record and simplify future requests.

Integrations: Salesforce, Microsoft 365, NetSuite, Google Workspace
Document Formats: PDF, DOCX, and export-ready records
Security: TLS in transit; AES-256 at rest

Common timing expectations and deadlines

Timing often depends on the recipient; document and respond promptly to avoid payment delays or compliance issues.

On Request:

Provide immediately when requested by bank or vendor

Before Account Opening:

Submit prior to completing bank account or ACH enrollment

Annual Review:

Update annually or on material changes to authority or EIN

Prior to Contract Signing:

Deliver before executing agreements that rely on signer authority

Retention Reminder:

Retain executed copies per corporate retention policy

Common mistakes that delay verification

Using a trade name instead of the exact legal entity name, which prevents Secretary of State or bank matches and triggers manual review.
Providing an incorrect or mistyped EIN, which can lead to backup withholding or refusal to process payments.
Omitting the basis of signing authority, such as a corporate resolution or board minutes, causing recipients to request additional proof.
Failing to notarize when required by the recipient, producing a returned or non‑accepted submission and extended processing time.

Consequences of incorrect or incomplete statements

Payment Delays: Lost or delayed payments

Backup Withholding: 24% withholding risk

Contract Rejection: Counterparty may refuse execution

Regulatory Scrutiny: Compliance reviews triggered

Tax Penalties: Information return penalties possible

Reputational Harm: Trust with partners affected

Example eSignature pricing and feature comparison for signing and distributing statements

Basic plan prices and common feature availability across vendors; signNow is listed first. Verify vendor plans and capabilities directly with providers for large-volume or compliance-sensitive deployments.

	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
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Business Company Statements

Answers to typical questions about legal validity, signatures, and supporting evidence to reduce common rejections and delays.

Need help? Contact support

Is an electronic statement legally binding?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures and records are generally legally binding when intent, consent, attribution, and retention requirements are met.
When do I need a notarized statement?
Only when the recipient requests notarization or state law requires it for the underlying transaction; verify the recipient’s requirements before notarizing as needs vary by state and use case.
What if the signer name does not match corporate records?
A mismatch triggers verification requests and may cause backup withholding or account holds; supply certified formation documents or a corporate resolution showing the signer’s authority.
Can a third party accept a scanned signed PDF?
Often yes, provided the signature meets ESIGN/UETA criteria and the recipient accepts electronic records; some transactions or jurisdictions still require original or notarized documents.
How should I prove signing authority?
Provide a corporate resolution, board minutes, or operating agreement that names the signer and grants execution authority; attach certified copies when requested.
How long should executed statements be retained?
Retain per the regulatory baseline: at least 3 years for tax‑relevant records (IRC §6501(a)), 6 years for HIPAA‑covered health records (45 CFR §164.530(j)), and longer where state law requires.

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