Is an electronic signature valid?

Yes. Electronic signatures executed with intent and retained electronically are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA statutes adopted in most states, provided no statutory exception applies.

When is notarization required?

Notarization depends on the document and state law. Certain attestations or documents attached to state filings may need a notary or remote online notarization; verify requirements with the relevant Secretary of State or notary rules.

Who can sign on behalf of a founder?

An authorized representative or attorney‑in‑fact with a valid power of attorney may sign if authority is documented. Maintain the power of attorney record and retain it alongside the report.

How to correct an executed report?

Do not alter the original signed copy. Prepare an amendment or corrected report, have all required signers approve and sign the amendment, and retain both the original and the amendment for the record.

How long should I keep copies?

Retain the executed report for the active term plus relevant federal or industry retention periods; see IRS minimums (IRC §6501(a)) and HIPAA retention rules (45 CFR §164.530(j)) where applicable.

Can I use a remote notary?

Many states permit Remote Online Notarization (RON) with identity proofing and audio‑video recording; state rules differ, so confirm RON availability and technical requirements before relying on it.

Electronic Signature
Templates
Miscellaneous
Business Founders Report

Business Founders Report

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

BUSINESS FOUNDERS REPORT

Company Name: Report Date:

Prepared By: Contact:

RECITALS

WHEREAS, the Company is duly formed and validly existing under the laws of the jurisdiction indicated: State of Incorporation: ; and

WHEREAS, the founders and key principals of the Company (each a "Founder" and collectively the "Founders") have contributed capital, services and intellectual property to the Company, and require a formal report documenting ownership, capital contributions, vesting, and intellectual property assignments as of the Report Date; and

WHEREAS, the undersigned parties desire to set forth, in this Business Founders Report, the particulars of founder ownership, capital and IP assignments and certain related administrative terms for use by the Company, its counsel, and authorized third parties.

SCOPE OF WORK

The scope of this report comprises verification and documentation of founder identities, ownership percentages, capital contributions, share issuance, vesting schedules, and intellectual property assignment status as of the Report Date. The Report does not constitute legal advice unless separately agreed in writing.

Detailed Scope and Findings

FOUNDER INFORMATION

Complete the following entries for each Founder. If more than three Founders, include summary in Additional Founders field below.

Founder 1 — Full Legal Name Address

Role:

Ownership %:

Shares Issued:

Capital Contribution Vesting Schedule / Notes Founder 2 — Full Legal Name Address

Role:

Ownership %:

Shares Issued:

Capital Contribution Vesting Schedule / Notes Founder 3 — Full Legal Name Address

Role:

Ownership %:

Shares Issued:

Capital Contribution Vesting Schedule / Notes Additional Founders / Summary

CAPITALIZATION SUMMARY

Total Authorized Shares: Total Issued and Outstanding:

Post-Report Capitalization Table and Notes

INTELLECTUAL PROPERTY ASSIGNMENT

Each Founder affirms whether they have executed a written IP Assignment to the Company for inventions, designs, code, know-how, and other proprietary materials created prior to or during the Founder’s engagement with the Company.

Founder 1 Assignment Executed: Founder 2 Assignment Executed: Founder 3 Assignment Executed:

IP Assignment Details / Attachments

PAYMENT TERMS

If compensation is payable in connection with preparation of this report, the following terms apply.

Payment Amount Payment Schedule / Milestones

Late Fee:

TERM AND TERMINATION

This Report is effective as of Start Date: and shall remain in effect until End Date: , unless earlier terminated in accordance with this section.

Either party may terminate this engagement upon written notice to the other party delivered at least days prior to termination. Termination does not relieve the Company of obligations to pay for work performed prior to termination.

CONFIDENTIALITY

All non-public information produced, obtained, or derived in the course of preparing this Report shall be treated as Confidential Information. The recipient shall not disclose Confidential Information except (i) to its employees and advisors who have a need to know for purposes of this Report and who are bound by confidentiality obligations, or (ii) as required by law or court order, provided the recipient gives prompt notice to the disclosing party where permitted.

Confidentiality Acknowledgement: I acknowledge and agree to the confidentiality provisions set forth above.

REPRESENTATIONS AND WARRANTIES

Each Founder represents and warrants that the information provided in this Report is true, complete and accurate to the best of the Founder’s knowledge as of the Report Date; that the Founder has full power and authority to disclose such information and, where applicable, to assign intellectual property rights; and that no material agreement or obligation has been omitted that would materially affect ownership or capital structure.

GOVERNING LAW

This Report and any dispute arising out of or relating to it 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 Business Founders Report, together with any attachments or schedules specifically referenced herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous communications and proposals, whether oral or written, relating to such subject matter.

Amendments to this Report must be made in writing and executed by authorized representatives of the parties.

CERTIFICATION

By signing below, the undersigned certify under penalty of perjury that the information contained in this Business Founders Report is true, correct and complete as of the Report Date and that they are authorized to provide the information and execute this Report on behalf of the party they represent.

Company Representative:

By:

Date:

Founder Representative:

By:

Date:

What the Business Founders Report Is

A Business Founders Report is a formal record summarizing the founding team and the initial governance, ownership, and capital structure of a new company. Typical content includes founder legal names, ownership percentages, capital contributions, equity vesting schedules, assigned roles and responsibilities, and any intellectual property assignment statements. The report documents facts used by incorporators, investors, banks, and regulators to verify who controls the entity and how economic rights are allocated. It is often attached to formation filings, investor diligence packages, and internal corporate records and may be executed electronically under ESIGN and state UETA laws.

Why a Founders Report Matters

Maintains a clear, auditable record of founder ownership, capital contributions, and role assignments; reduces disputes, supports investor due diligence, and creates a dependable source for tax, bank, and legal requirements.

Who Typically Prepares or Uses This Report

The Business Founders Report is prepared by founders, their legal counsel, or company administrators and shared with stakeholders for verification and recordkeeping.

Founders and co‑founders assembling ownership records, capital contributions, and vesting terms for internal and external verification.
Investors, angel groups, and venture capital firms reviewing precise founder economics and IP assignments during due diligence.
Corporate counsel, accountants, and registered agents who integrate the report with formation documents, cap tables, and tax filings.

Use it to support formation filings, cap table maintenance, investor diligence, banking KYC, and later corporate governance actions.

Core Sections to Include in a Professional Report

A complete Business Founders Report organizes founder identities, ownership splits, capital and in‑kind contributions, vesting and transfer restrictions, assigned roles, and IP assignment language. Each section should be unambiguous, dated, and accompanied by supporting evidence where applicable.

Founder Identity

Full legal name, current residence, and government ID reference; used to match KYC and corporate records and avoid name-mismatch issues.

Ownership Percentage

Explicit percentage and number of shares or units per founder, plus class of security and any conversion mechanics affecting ownership.

Capital Contribution

Cash, property, and service contributions with amounts, dates, and valuation method documented for tax and capitalization purposes.

Vesting Schedule

Vesting start date, cliff periods, vesting cadence, acceleration triggers, and treatment on termination or change of control.

Roles & Duties

Founders' titles, primary responsibilities, decision‑making authorities, and any initial employment or consulting terms.

IP Assignment

Clear assignment or work‑for‑hire language transferring relevant intellectual property to the company, with dates and inventor lists where relevant.

Step-by-Step: Preparing and Executing the Report

Follow a clear sequence from data collection through execution and secure archiving to make the report reliable for investors and regulators.

01

Collect Information: Assemble IDs, contribution records, and cap table data for all founders.
02

Draft Report: Populate sections with precise figures, dates, and definitions; attach evidence.
03

Legal Review: Have counsel confirm vesting, IP assignment, and tax implications.
04

Sign and Store: Execute signatures, notarize if required, and archive the executed copy securely.

Configuring an Online Workflow for the Report

Set up a signing workflow that enforces signer order, required fields, authentication, and automatic document retention to reduce manual errors.

Field	Configuration
Signing order	Sequential or parallel signer order, set per agreement requirements
Authentication level	Email link, SMS code, or stronger KBA depending on risk
Conditional fields	Show or hide sections based on ownership or contribution values
Save signed copy	Automatically send final PDF to stakeholders and archives

Where to Send, File, and Archive the Report

Identify primary destinations: corporate records, investor folders, bank KYC files, and any state registries that accept founder attestations.

Send to signers: Email or secure link delivered to each founder for signature.
Distribute to stakeholders: Share executed copies with investors, counsel, and the company record custodian.
File with formation records: Attach to articles, operating agreement, or company minute book where relevant.
Archive securely: Store final PDF in encrypted cloud storage with version history.

Technical Requirements for eSigning and Storage

Choose a platform that supports standard file types, conditional fields, authentication, and preserves an audit trail for enforceability.

File formats: PDF, DOCX, HTML, XLSX supported
Integrations: Salesforce, NetSuite, Google Workspace integrations available
Authentication: Email, SMS, KBA, and SSO options

Timing Considerations and Common Deadlines

Observe formation, tax, and corporate reporting timelines. Some items are immediate, others vary by state or filing channel.

Effective date selection:

Choose an effective date (MM/DD/YYYY) for ownership and vesting calculations.

EIN application:

Apply online via IRS to receive an EIN immediately in most cases.

State filing timing:

Secretary of State processing times and expedite options vary by state and county.

Annual reports:

State annual report due dates vary; verify Secretary of State deadlines.

Board approvals:

Document board or member approvals tied to formation and capitalization events promptly.

Common Preparation Errors to Avoid

Using informal or abbreviated names that do not match government IDs, which can prevent bank and tax verification.
Forgetting to attach evidence of capital contributions, such as wire receipts or executed promissory notes, leading to valuation disputes.
Leaving vesting mechanics vague or undefined — unclear cliffs or acceleration terms invite future litigation.
Failing to assign or document intellectual property transfers; absent clear IP assignment, ownership claims may be contested.

Consequences of an Incorrect or Incomplete Report

Filing Rejection: State filings may be refused, delaying formation.

Tax Liability: Incorrect ownership can trigger IRS classification issues.

Delayed Funding: Investors may pause funding pending corrected records.

Ownership Disputes: Ambiguous allocations increase litigation risk.

Contractual Breach: Missing approvals could void agreements.

Regulatory Risk: Noncompliant filings can attract administrative penalties.

Security and Compliance Considerations

In-transit encryption: TLS 1.2/1.3

At-rest encryption: AES-256

Enterprise audits: SOC 2 Type II report available

International standard: ISO 27001 certified

HIPAA handling: BAA required for PHI workflows

Electronic law compliance: ESIGN and UETA support

Supporting Documents to Attach

Attach documents that substantiate entries in the report. These attachments provide evidence for banks, investors, and tax authorities.

Articles

Articles of Incorporation or Organization showing entity formation details and filing jurisdiction, including filing receipt.

Operating Agreement

Initial operating agreement or bylaws documenting governance, ownership rights, and transfer restrictions tied to the founders' report.

EIN Confirmation

IRS EIN issuance letter or confirmation demonstrating the company’s tax identification for banking and payroll.

Cap Table

A current capitalization table reconciling shares/units, option pools, convertible notes, and founder allocations.

eSignature Vendor Comparison for Executing the Report

Comparison of typical vendor starting prices and feature availability for executing and managing the Business Founders Report electronically. Pricing reflects published plan starting points and common feature distinctions.

	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	Yes, 7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples from signNow Customers

Examples show how organizations used an eSigned founders report and related workflows to streamline formation and investor due diligence.

Optica Ventures LLC

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

Used eSign to collect founder signatures remotely.
The executed report became part of the investor diligence package and the company record, eliminating courier delays and providing immediate proof of execution for banking and cap table updates.

Martin Properties

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

Completed founder attestations and property-related ownership entries remotely.
The digital copies were archived with audit trails, enabling faster financing conversations and reducing time to close on early-stage investments and property deals.

Frequently Asked Questions and Answers

Answers to common questions about signing, validating, storing, and correcting a Business Founders Report executed electronically.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures executed with intent and retained electronically are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA statutes adopted in most states, provided no statutory exception applies.
When is notarization required?
Notarization depends on the document and state law. Certain attestations or documents attached to state filings may need a notary or remote online notarization; verify requirements with the relevant Secretary of State or notary rules.
Who can sign on behalf of a founder?
An authorized representative or attorney‑in‑fact with a valid power of attorney may sign if authority is documented. Maintain the power of attorney record and retain it alongside the report.
How to correct an executed report?
Do not alter the original signed copy. Prepare an amendment or corrected report, have all required signers approve and sign the amendment, and retain both the original and the amendment for the record.
How long should I keep copies?
Retain the executed report for the active term plus relevant federal or industry retention periods; see IRS minimums (IRC §6501(a)) and HIPAA retention rules (45 CFR §164.530(j)) where applicable.
Can I use a remote notary?
Many states permit Remote Online Notarization (RON) with identity proofing and audio‑video recording; state rules differ, so confirm RON availability and technical requirements before relying on it.

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