Can this document be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. ch.96) and UETA in most states, electronic signatures are legally valid if intent, consent, attribution, and retention requirements are met.

When is notarization required?

Notarization is rarely needed for ordinary commercial contracts but may be required for certain real estate or power-of-attorney elements; check state law before assuming it is unnecessary.

Who must sign the arrangement?

An authorized representative with corporate authority should sign; verify board approvals or corporate resolutions if signatory authority is delegated or limited.

What about HIPAA or regulated data?

If the arrangement involves protected health information, include a HIPAA-compliant BAA and use a platform that supports HIPAA controls and retention rules.

How long should I keep the executed file?

Retain the executed agreement for the term plus statutory periods: at least three years for IRS purposes and six years for HIPAA, with state-specific variations.

What if a party disputes the signature?

Provide the platform’s audit trail (timestamps, IP, signer authentication) and any notarization or identity-proofing records to support attribution and intent.

Electronic Signature
Templates
Miscellaneous
Business Operating Arrangement

Business Operating Arrangement

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

BUSINESS OPERATING ARRANGEMENT

This Business Operating Arrangement (the Agreement) is entered into as of Effective Date: by and between:

Party A (First Contracting Party) Party A Address Party B (Second Contracting Party) Party B Address

WHEREAS

WHEREAS, Party A represents that it is duly organized and authorized to engage in the business activities described herein and possesses the resources and expertise necessary to perform the services set forth in this Agreement; and

WHEREAS, Party B desires to engage Party A, and Party A agrees to provide certain services and cooperative operational support under the terms and conditions set forth below; and

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. Scope of Work

Party A shall perform the services and duties described in the scope below and shall coordinate with Party B as necessary to achieve the objectives of this Arrangement. The scope may include deliverables, milestones, performance standards, and reporting requirements.

Detailed Scope of Work

2. Payment Terms

In consideration for the services rendered by Party A, Party B shall pay the fees and reimburse expenses as set forth below. Unless otherwise stated, all fees are exclusive of applicable taxes.

Total Compensation Payment Schedule / Milestones Invoicing and Payment Terms Late Payment Fee

If any undisputed amount due under this Agreement is not paid within days after the due date, interest shall accrue at % per month (or the maximum permitted by law, if lower).

3. Term and Termination

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement without cause upon written notice delivered to the other party at least days prior to the intended termination date. Either party may terminate immediately for cause upon material breach by the other party that remains uncured for thirty (30) days following written notice specifying the breach.

Upon termination, Party A shall deliver to Party B any work in progress and Party B shall pay Party A for work performed and expenses incurred through the effective date of termination, subject to setoff for any amounts owed by Party A for breach.

4. Confidentiality

Each party (the Receiving Party) shall treat as confidential and shall not disclose or use any non-public, proprietary, or confidential information disclosed by the other party (the Disclosing Party) except as necessary to perform obligations under this Agreement. Confidential information includes trade secrets, financial data, business plans, customer lists, pricing, and technical information, whether disclosed in writing, orally, or by inspection.

The obligations of confidentiality shall not apply to information that: (a) is or becomes publicly available through no breach of this Agreement; (b) is rightfully received from a third party without restriction and without breach of obligation to the Disclosing Party; (c) is independently developed by the Receiving Party without use of the Disclosing Party's Confidential Information; or (d) is required to be disclosed by law or order of a court or governmental authority, provided the Receiving Party gives prompt notice to the Disclosing Party and cooperates in seeking a protective order or other limitation on disclosure.

Mutual Confidentiality

The parties agree that confidentiality obligations are mutual and binding on both parties.

5. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

6. Miscellaneous Provisions

Assignment: Neither party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party, except that either party may assign this Agreement to an affiliate or in connection with a merger or sale of substantially all of its assets.

Amendment: This Agreement may be amended only by a written instrument executed by authorized representatives of both parties.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the parties shall negotiate in good faith a substitute, valid provision that most nearly effects the parties' original intent.

7. Entire Agreement

This Agreement, including any exhibits or schedules attached hereto and documents incorporated by reference herein, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous negotiations, proposals, representations, warranties, agreements, and understandings, whether written or oral.

The parties have executed this Agreement by their duly authorized representatives as of the Effective Date first set forth above.

Party A:

By:

Date:

Party B:

By:

Date:

What the Business Operating Arrangement Is and when it applies

A Business Operating Arrangement is a written agreement that records how parties will collaborate to manage operations, allocate responsibilities, and share risks and returns across a joint activity or shared enterprise. It typically defines roles, scope of services, governance processes, financial arrangements, decision-making thresholds, dispute‑resolution steps, and the duration of the relationship. These documents help reduce ambiguity between organizations or business units, provide a record for audit and compliance, and form the basis for actionable tasks such as invoicing, performance measurement, and regulatory reporting.

Why a clear arrangement matters for operations and compliance

A clear Business Operating Arrangement reduces operational ambiguity, documents risk allocation, and supports enforceability if disputes arise. Well‑drafted terms protect each party, align expectations, and support internal controls and external audits where required.

Who typically prepares and signs a Business Operating Arrangement

Different parties prepare these agreements depending on structure and purpose.

Small business owners and partners: Use the arrangement to document day-to-day responsibilities and profit/loss sharing during a partnership or joint venture.
Corporate departments and functional leads: Formalize shared services, outsourcing arrangements, or intercompany operational responsibilities within an enterprise.
External joint-venture participants: Specify governance, capital contributions, reporting, and exit mechanics between separate legal entities.

Identify the decision-makers and authorized signers before finalizing; this prevents later challenges to authority or enforceability.

Core sections to include in a professional Business Operating Arrangement

A complete arrangement organizes operational detail by topic so each party knows duties, handoffs, performance measures, and exit mechanics. The following sections are standard and help turn high-level negotiation points into enforceable obligations.

Parties

Full legal names, entity types, and addresses for all signatories so legal identity and service of process are clear and unambiguous.

Scope of Services

Precise description of responsibilities, deliverables, timelines, and acceptance criteria to avoid later disputes over expectations.

Governance

Decision-making rules, voting thresholds, reporting cadence, and escalation procedures to manage operations and resolve deadlocks.

Financial Terms

Payment amounts, timing, expense allocation, invoicing procedures, and bookkeeping responsibilities to support audits and tax compliance.

Risk Allocation

Indemnities, insurance requirements, limitation of liability, and compliance obligations allocating operational and regulatory risk between parties.

Termination

Events of default, notice periods, wind-down tasks, and post‑termination obligations including data return or destruction requirements.

Data, security, and compliance items to record

Encryption: TLS 1.2/1.3 in transit

Data at rest: AES-256 encrypted storage

Certifications: SOC 2 Type II available

Regulatory scope: ESIGN and UETA compliance

Health data: HIPAA BAA required

Audit logs: Comprehensive timestamped trail

Step-by-step: prepare, review, sign, and finalize

Follow a consistent sequence to reduce errors: prepare the draft, verify fields, obtain authorized signatures, and preserve the executed record.

01

Prepare draft: Assemble parties, scope, and payment terms with supporting exhibits.
02

Internal review: Have legal and finance review for risk and tax implications.
03

Execute signatures: Use authorized signers and agreed authentication for each party.
04

Archive record: Store final PDF with audit trail and retention metadata.

Configuring a standard digital signing workflow

Set up routing, authentication, and retention in your signing platform to match the agreement's required controls and audit needs.

Field	Configuration
Signature Order	Sequential or parallel routing per governance
Authentication Method	Email link, SMS code, or stronger MFA
Notification Routing	Primary and backup contact email addresses
Retention Policy	Export signed PDF and keep audit record

Typical digital signing flow for the arrangement

A reliable online workflow follows four core stages from upload to completed record.

Upload document: Sender uploads final PDF or DOCX to the platform.
Place fields: Add signature, date, and custom data fields where required.
Authenticate signer: Choose email, code, or advanced verification per risk level.
Complete and store: Signed copy and audit trail are archived and shared.

Technical considerations: formats, integrations, and authentication

Ensure your platform supports required file formats, integrations, and signer authentication options before you send the agreement.

Integrations: Salesforce, NetSuite, MS 365
File formats: PDF, DOCX, HTML accepted
Authentication: Email, SMS, or KBA options

Typical eSignature vendor pricing and capability snapshot

Compare introductory pricing and core capabilities for common eSignature platforms; signNow is listed first to match vendor ordering requirements.

	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 trial	No	No	Yes, limited	Yes, limited
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	No cap	No cap	No cap

Key risks and potential penalties from an incorrect arrangement

Contract unenforceability: Ambiguous terms can render obligations unenforceable

Tax exposure: Incorrect allocation can trigger IRS scrutiny

I-9 and employment fines: Noncompliance may lead to DHS penalties

Data breach penalties: HIPAA or state privacy fines possible

Signature disputes: Improper authority challenges enforceability

Late filings: Missed notices may create monetary penalties

Common preparation errors to avoid

Using informal or inconsistent party names resulting in identity disputes at enforcement.
Omitting decision thresholds or escalation paths that leave operations stalled during disagreements.
Failing to document finance flows clearly, which creates reconciliation and tax problems.
Not confirming authorized signers, producing signatures that can be contested.

Practical tips for accurate and efficient completion

Adopt clear drafting and signing practices to reduce rework, minimize legal risk, and make the arrangement audit-ready.

Standardize party names and references

Use the legal entity name throughout the document and append the entity ID or registration number when available to avoid identity confusion.

Include measurable deliverables

Define acceptance criteria, KPIs, and reporting cadence so performance is verifiable and disputes are easier to resolve.

Match signing method to risk

Use stronger signer authentication or notarization for high‑value or regulated obligations to improve evidentiary weight.

Keep an auditable record

Store the final signed PDF with a timestamped audit trail and accessible metadata for compliance and audits.

How organizations use Business Operating Arrangements in practice

Practical examples show how the arrangement reduces execution time and clarifies responsibilities across diverse organizations.

Optica Ventures LLC — Brian Fitzgibbons

Optica streamlined customer handoffs with a documented operating arrangement

"The interface is simple and easy-to-use for our team"
The arrangement reduced back-and-forth, clarified responsibilities for clients, and made onboarding and billing more consistent across projects.

Martin Properties — Tim Martin

A real estate operator standardized vendor roles and payment timing across properties

"I can process and execute all of these documents online with 100% compliance"
Using a single arrangement template cut execution time, centralized compliance checks, and improved recordkeeping for audits.

Frequently asked questions about execution, validity, and storage

Answers cover common concerns about eSigning, notarization, authority to sign, retention, and what to do if a party disputes execution.

Need help? Contact support

Can this document be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. ch.96) and UETA in most states, electronic signatures are legally valid if intent, consent, attribution, and retention requirements are met.
When is notarization required?
Notarization is rarely needed for ordinary commercial contracts but may be required for certain real estate or power-of-attorney elements; check state law before assuming it is unnecessary.
Who must sign the arrangement?
An authorized representative with corporate authority should sign; verify board approvals or corporate resolutions if signatory authority is delegated or limited.
What about HIPAA or regulated data?
If the arrangement involves protected health information, include a HIPAA-compliant BAA and use a platform that supports HIPAA controls and retention rules.
How long should I keep the executed file?
Retain the executed agreement for the term plus statutory periods: at least three years for IRS purposes and six years for HIPAA, with state-specific variations.
What if a party disputes the signature?
Provide the platform’s audit trail (timestamps, IP, signer authentication) and any notarization or identity-proofing records to support attribution and intent.

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