Can I use an electronic signature?

Yes. Electronic signatures are legally valid for most business agreements under the ESIGN Act (15 U.S.C. §7001) and by UETA where adopted. Verify exceptions such as wills, court orders, and certain notices before relying solely on an e-signature.

When is notarization required?

Notarization depends on the document type and state. Deeds and some powers of attorney commonly require notarization; state rules vary. Use notarization when recordability or a self-proving affidavit is needed.

Who must sign on behalf of a company?

A person with authority such as an officer or authorized agent should sign. For corporations or LLCs, check the entity’s formation documents or corporate resolution; documentation of authority reduces risk of later challenges.

What if a signer makes a mistake?

Avoid corrections on final executed copies. Use amendment or re-execution workflows and preserve prior versions. Minor typographical errors may be cured by written confirmation depending on risk.

How long should records be kept?

Retention varies: keep tax-related records at least three years (IRC §6501(a)), HIPAA records six years (45 CFR §164.530(j)), and consider seven to ten years for contractual disputes or real estate matters.

Do I need a BAA for vendors?

Yes if the initiation model will contain protected health information and a vendor will create, receive, maintain, or transmit PHI. Execute a Business Associate Agreement before sharing PHI.

Electronic Signature
Templates
Miscellaneous
Business Initiation Model

Business Initiation Model

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

BUSINESS INITIATION MODEL

This Business Initiation Model Agreement (the Agreement) is made effective as of between:

Parties

Client Name Client Address Service Provider Name Service Provider Address

Entity type: Corporation LLC Other

Recitals

WHEREAS, Client seeks to develop, implement, and evaluate a business model, go-to-market strategy, and operational plan in furtherance of Client's commercial objectives; and

WHEREAS, Service Provider has expertise in business model design, market assessment, and operational startup services and agrees to provide professional services to initiate the project defined in this Agreement; and

WHEREAS, the parties desire to set forth the terms and conditions governing the Services, the allocation of responsibilities, the schedule of deliverables, compensation, and the procedures for termination.

Scope of Work

Service Provider will perform the tasks described below in accordance with the schedule and acceptance criteria set out in this Agreement. Service Provider shall devote sufficient time, personnel, and resources to perform the Services in a professional manner consistent with industry standards.

Detailed Scope of Work (describe services, deliverables, milestones, and acceptance criteria) Key Deliverables and Milestones

Payment Terms

Client shall pay Service Provider the fees and expenses set forth below in consideration for the Services. All fees are exclusive of applicable taxes unless otherwise stated.

Total Fee Payment Schedule (milestones, amounts, and due dates) Invoicing and Payment Terms Late Payment Fee

Term and Termination

This Agreement will commence on and continue until unless earlier terminated in accordance with this section.

Notice Period for Termination Without Cause Termination for Cause; Cure Period

Confidentiality

Each party (Recipient) acknowledges that during performance of the Services it may receive Confidential Information of the other party (Discloser). Confidential Information means non-public business, technical, financial, strategic, customer or product information disclosed in any form. Recipient shall (a) hold Confidential Information in strict confidence, (b) use Confidential Information solely to perform rights and obligations under this Agreement, and (c) restrict disclosure to employees and advisors on a need-to-know basis who are bound by confidentiality obligations at least as protective as those herein.

Confidential Information does not include information that: (i) is or becomes generally available to the public other than by breach of this Agreement; (ii) is lawfully received from a third party without confidentiality obligations; or (iii) is independently developed by Recipient without use of Discloser's Confidential Information. Recipient may disclose Confidential Information when required by law if Recipient gives Discloser prior written notice and cooperates to seek protective measures.

Acknowledgement of Confidentiality

Client and Service Provider acknowledge and agree to the Confidentiality obligations set forth above.

Intellectual Property and Work Product

Unless otherwise agreed in writing, all work product, deliverables, reports, plans and materials created specifically for Client pursuant to this Agreement (Work Product) shall be considered work made for hire and, upon full payment of fees due, ownership of such Work Product shall transfer to Client. Service Provider shall retain ownership of pre-existing materials and general know-how, and Service Provider grants Client a nonexclusive license to incorporate such pre-existing materials to the extent embedded in the Work Product.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles. The parties shall attempt in good faith to resolve any dispute arising under this Agreement by negotiation among senior representatives. If unresolved, the parties may pursue any remedy available at law or in equity.

Indemnification

Each party shall indemnify and hold harmless the other party from and against any third-party claims, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of the indemnifying party's breach of this Agreement or its gross negligence or willful misconduct in performing its obligations hereunder.

Entire Agreement; Amendments

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, understandings and communications, whether oral or written. No amendment or modification to this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. Neither party may assign this Agreement without the prior written consent of the other, except that either party may assign to an affiliate or in connection with a merger or sale of substantially all its assets.

Client:

By:

Date:

Service Provider:

By:

Date:

What the Business Initiation Model Is and when it applies

The Business Initiation Model is a standardized template used to capture essential details when forming, onboarding, or contracting with a new business relationship. It combines company identification, primary contacts, scope of work, payment terms, milestones, risk allocations, and signature blocks into a single record designed for consistent internal review and external execution. The model supports both paper and electronic workflows and is commonly used by entities that need to document initial responsibilities, regulatory disclosures, and routing instructions before work begins or funds are released.

Why a structured Business Initiation Model matters

A consistent initiation model reduces onboarding ambiguity, ensures required legal and operational details are captured, and creates an auditable record for compliance and dispute resolution. It shortens review cycles and makes downstream contract drafting and invoicing more efficient.

Typical users and teams that complete this model

Teams from legal, procurement, sales, and operations use this model to gather the core facts needed to start a relationship and trigger approvals.

Sales and account managers capturing client contact, scope, pricing, and billing preferences for handoff to operations.
Procurement and vendor management documenting supplier credentials, insurance, and payment terms before issuing purchase orders.
Legal and contracts teams collecting governing law, indemnities, and signatory authority to prepare formal agreements.

Aligning these functions with a single initiation record reduces rework and clarifies who signs, when obligations begin, and which documents must be retained.

Core components to include in a professional Business Initiation Model

A complete initiation model balances administrative data with the legal and financial terms needed to begin work. Include the following elements to make the document actionable and defensible.

Executive Summary

Concise description of the project or relationship, key deliverables, and business objectives to frame the remainder of the record.

Parties

Full legal names, entity types, and primary contact information for every party, including billing contact and registered agent where applicable.

Scope

Clear, measurable description of services or goods, acceptance criteria, and any exclusions to avoid scope creep and disputes.

Payment Terms

Currency, invoicing cadence, due dates, late fees, and any retainers or upfront deposits needed to begin work.

Milestones

Deliverable dates, review cycles, and acceptance checkpoints tied to payment or resource allocation.

Signature Block

Designated signatories, capacity (title), date fields, and any witness or notarization requirements for enforceability.

Step-by-step: completing and issuing the model

Follow these sequential steps to prepare, approve, and execute the Business Initiation Model correctly.

01

Prepare: Collect required documentation and populate all mandatory fields.
02

Review: Legal and finance verify terms, TINs, and payment provisions.
03

Authorize: Obtain required internal approvals and signatory confirmations.
04

Execute: Deliver to external parties for signature and retain executed copies.

Typical digital workflow settings for online completion

Use these workflow settings when configuring an electronic initiation process to ensure consistent routing and auditability.

Field	Configuration
Signature Routing	Sequential or parallel routing with role-based order and reminders.
Authentication	Email link by default; SMS or two-factor for elevated assurance.
Conditional Fields	Show or hide sections based on entity type or selected options.
Storage Location	Encrypted cloud storage with retention policies and access controls.

How electronic completion and submission typically flow

An electronic Business Initiation Model normally follows a predictable sequence from sender to signer to archive.

Upload Document: Sender uploads template and places fields for each signer.
Add Signers: Enter signer emails and assign role and routing order.
Sign: Signers authenticate and apply electronic signatures.
Archive: System stores executed copy and audit trail for records.

Technical and integration considerations for e-submission

Confirm platform support for required file formats, authentication methods, and integration endpoints before deploying an electronic initiation workflow.

File Formats: PDF, DOCX, and fillable forms supported.
Integrations: Connectors for CRM/ERP such as Salesforce and NetSuite.
Authentication Options: Email, SMS, or advanced signer verification.

Ensure the chosen platform provides tamper-evident storage, an audit trail, and the ability to export signed records in common formats for compliance and downstream systems.

eSignature vendor pricing and capability snapshot for initiating documents

Compare common entry-level pricing and a set of baseline features relevant to high-volume initiation workflows; signNow is listed first per comparison conventions.

	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	Yes (trial varies)	Yes (trial varies)	Yes (trial varies)	Yes (trial 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 by plan	Varies by plan	Varies by plan

Security and compliance features to verify

Encryption: TLS 1.2/1.3; AES-256 at rest

Audit Trail: Time-stamped event history and IP logs

HIPAA Support: Business Associate Agreement available

21 CFR Part 11: Capabilities to meet FDA electronic records rules

SOC 2 / ISO: SOC 2 Type II and ISO 27001 certifications

Accessibility: WCAG 2.0 Level AA compliance

Key penalties and legal risks from errors

1099 Late Penalty: Up to $330 per form (IRC §6721)

I-9 Violations: $281–$2,789 per violation (8 CFR §274a.2)

Intentional Disregard: $660+ per form, no cap

Missing Notary: May invalidate signature for recordable documents

Mismatched Names: Triggers backup withholding or tax reporting issues

Improper Consent: Consumer-facing records require ESIGN disclosures

Common preparation errors to avoid

Failing to verify signatory authority before routing leads to executed but unenforceable agreements and unnecessary re-execution costs.
Using informal or abbreviated legal names can create mismatches with tax records and delay payment or vendor onboarding processes.
Leaving effective dates, governing law, or payment terms blank creates ambiguity about when obligations start and which courts may hear disputes.
Omitting required consumer disclosures where ESIGN requires consent can render electronic records noncompliant for consumer-facing transactions.

Practical tips for accurate, efficient completion

Adopt these practices to reduce review cycles, strengthen enforceability, and simplify audits.

Standardize templates and fields

Use a single approved template with mandatory fields and validation rules to prevent common omissions and reduce reviewer corrections across teams.

Verify signer identity and authority

Confirm the signer’s legal capacity and preferred authentication method before sending; require corporate resolution or POA where corporate authority is unclear.

Preserve audit trails and exports

Store the signed document with its audit trail and maintain exportable copies (PDF/A) to meet regulatory or litigation needs.

Align retention with regulation

Map each initiation record to applicable retention periods (tax, HIPAA, SEC) and automate holds for audits or legal holds.

Frequently asked questions about using the Business Initiation Model

Answers to frequent setup, execution, and compliance questions when preparing or signing a Business Initiation Model.

Need help? Contact support

Can I use an electronic signature?
Yes. Electronic signatures are legally valid for most business agreements under the ESIGN Act (15 U.S.C. §7001) and by UETA where adopted. Verify exceptions such as wills, court orders, and certain notices before relying solely on an e-signature.
When is notarization required?
Notarization depends on the document type and state. Deeds and some powers of attorney commonly require notarization; state rules vary. Use notarization when recordability or a self-proving affidavit is needed.
Who must sign on behalf of a company?
A person with authority such as an officer or authorized agent should sign. For corporations or LLCs, check the entity’s formation documents or corporate resolution; documentation of authority reduces risk of later challenges.
What if a signer makes a mistake?
Avoid corrections on final executed copies. Use amendment or re-execution workflows and preserve prior versions. Minor typographical errors may be cured by written confirmation depending on risk.
How long should records be kept?
Retention varies: keep tax-related records at least three years (IRC §6501(a)), HIPAA records six years (45 CFR §164.530(j)), and consider seven to ten years for contractual disputes or real estate matters.
Do I need a BAA for vendors?
Yes if the initiation model will contain protected health information and a vendor will create, receive, maintain, or transmit PHI. Execute a Business Associate Agreement before sharing PHI.

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