Is an electronic signature legally valid?

Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and the Uniform Electronic Transactions Act (UETA) where adopted. Exceptions include certain wills and court filings; confirm on a case-by-case basis.

When is notarization necessary?

Notarization is required only when the recipient or state law specifically asks for a notarized attestation. Check state requirements: some states or title/financial institutions mandate notarized signatures for certain filings.

Can the form be signed remotely?

Remote electronic signatures are acceptable under ESIGN/UETA. If notarization is required, Remote Online Notarization (RON) may be permitted by state law; verify RON status with the relevant state notary authority.

How should errors be corrected?

Avoid handwritten corrections. Complete a new form or use an amendment addendum and re-sign. Attach an explanatory statement and supporting evidence to prevent acceptance delays.

How long must I keep signed forms?

Retain signed declarations at least as long as the active relationship plus applicable statutory periods. Follow IRS rules (minimum 3 years) and industry-specific retention such as HIPAA (6 years).

What privacy safeguards apply?

Limit personal identifiers to what is necessary, secure transmission with TLS, store with AES-256 encryption at rest, and request a Business Associate Agreement where PHI is involved.

Electronic Signature
Templates
Miscellaneous
Business Ownership Declaration Form

Business Ownership Declaration Form

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

BUSINESS OWNERSHIP DECLARATION

Company Name: Declaration Date:

RECITALS

WHEREAS, the undersigned declares the current ownership, control and management structure of the business identified above and affirms the accuracy of ownership percentages, beneficial ownership, and any agreements that affect control or distribution rights; and

WHEREAS, this Declaration is made to establish an evidentiary record for third parties, financial institutions, counterparties and regulatory or contracting purposes and to set forth certain undertakings concerning confidentiality, capital contributions, distributions and governing law; and

WHEREAS, the Parties intend that the statements and certifications contained herein be relied upon by recipients in determining ownership, control and authority within the business.

1. BUSINESS INFORMATION

Business Trade / DBA Name Business Address Entity Type (select all that apply)

Sole proprietorship Partnership Limited Liability Company (LLC) Corporation Other:

Tax Identification Number / EIN Jurisdiction of Formation Date of Formation

2. OWNERSHIP STRUCTURE

List current owners, beneficial owners, titles and ownership percentages. Attach additional sheets if necessary.

Owner 1 — Full Legal Name

Owner 1 Address Owner 2 — Full Legal Name

Owner 2 Address Owner 3 — Full Legal Name

Owner 3 Address

3. CONTROL AND MANAGEMENT

The following person(s) have authority to bind the business in ordinary and extraordinary transactions. Designate the primary authorized officer or manager below and describe any limits on authority.

Primary Authorized Representative Limits on Authority (if any)

4. SCOPE OF WORK

Describe the primary business activities, the responsibilities of owners with respect to operations, and any delegated duties relevant to ownership and management.

5. PAYMENT TERMS (CAPITAL CONTRIBUTIONS AND DISTRIBUTIONS)

Capital contributions, distribution policies and any payment schedules related to ownership interests are set forth below. Owners certify they will comply with the payment obligations described.

Initial Capital Contribution Amount Payment Schedule / Contribution Terms Late Payment Fee

6. TERM AND TERMINATION

This Declaration is effective as to the business and the undersigned owners on the Effective Date and remains in force until terminated as set forth below.

Termination Notice Period (days)

Termination for cause includes material breach, fraud, willful misconduct, or failure to make required capital contributions. Upon termination, distribution of remaining assets shall occur in accordance with ownership percentages unless otherwise required by law or written agreement.

7. CONFIDENTIALITY

Each owner and the Company shall maintain as confidential all non-public financial information, trade secrets, customer lists, proprietary processes and other business information disclosed in connection with ownership and management (collectively, Confidential Information). Confidential Information shall not be disclosed except (i) as required by law, (ii) with prior written consent of the disclosing party, or (iii) to professional advisors bound by confidentiality obligations. Reasonable measures shall be taken to protect Confidential Information; disclosure to unauthorized third parties shall constitute a material breach.

8. REPRESENTATIONS AND CERTIFICATIONS

Each signatory represents that the information provided in this Declaration is true, complete and correct to the best of their knowledge, that they are authorized to make this Declaration on behalf of the party they represent, and that no material fact has been omitted that would render any statement misleading.

Owners further certify whether they are beneficial owners under applicable beneficial ownership definitions:

Yes, I am a beneficial owner No, I am not a beneficial owner

9. GOVERNING LAW

This Declaration shall be governed by and construed in accordance with the laws of the jurisdiction set forth below, without regard to conflict of laws principles.

Governing Law Jurisdiction

10. ENTIRE AGREEMENT

This Declaration, together with any written exhibits or attachments expressly incorporated herein, constitutes the entire agreement and understanding among the parties regarding the matters set forth herein and supersedes all prior oral or written statements, representations, or agreements. Any amendment to this Declaration must be in writing and executed by the authorized representatives of the parties.

CERTIFICATION

By signing below, each signatory certifies under penalty of perjury under the laws of the governing jurisdiction that the information provided in this Declaration is true, correct and complete, and acknowledges that reliance on false statements may subject the signatory to civil or criminal liability.

Company Representative — Printed Name:

By (Signature):

Date:

Owner / Declarant — Printed Name:

By (Signature):

Date:

What the Business Ownership Declaration Form Is

A Business Ownership Declaration Form documents who legally owns and controls a business entity and records ownership percentages, managing officers, and beneficial owners. Organizations use it for onboarding, bank account setup, vendor qualification, contract execution, and regulatory compliance. The form helps verify identity, meet KYC/AML expectations, and create a clear paper trail for auditors and counterparties when ownership structures are reviewed.

Why this declaration matters for compliance and transactions

The form provides a single, consistent record of ownership that reduces ambiguity in contracts, supports due diligence, and helps satisfy regulatory obligations. Accurate declarations can prevent withholding, speed account opening, and reduce disputes over authority.

Who typically completes or requests this form

The Business Ownership Declaration Form is used across departments and organizations that must verify ownership and signing authority before completing commercial or regulatory actions.

Banks and lenders requiring beneficial ownership details for account opening and KYC purposes.
Corporate legal and compliance teams collecting ownership records for contracts and audits.
Vendors and procurement teams confirming who may sign agreements or receive payments.

Use the form to centralize ownership facts and reduce repeated document requests during onboarding or transactional workflows.

Who can sign and certify ownership

Chief Executive Officer

A CEO or equivalent officer can sign to certify corporate ownership and authority; when internal bylaws delegate signing power elsewhere, include an authorizing resolution or power of attorney to avoid later disputes.

Corporate Secretary

A corporate secretary or authorized agent often signs to attest to records and ownership percentages; include a dated company record or board resolution if requested by third parties.

Step-by-step: completing the form

Follow these sequential steps to complete a Business Ownership Declaration Form accurately and reduce processing delays.

01

Collect documents: Gather IDs, formation documents, and ownership schedules.
02

Enter owner data: List legal names, ownership percentages, and roles.
03

Confirm signatures: Obtain signatures from authorized officers or agents.
04

Attach evidence: Include board resolutions, operating agreements, or KYC IDs.

Configuring online completion and validation

Key settings for an online workflow reduce errors and ensure legal validity when collecting ownership details electronically.

Field	Configuration
Authentication Method	Email link + SMS code
Required Fields	Legal name, TIN, ownership percent
Document Formats	PDF or DOCX accepted
Retention Setting	Export and store signed copy

Typical submission and verification flow

This sequence shows how the form moves from collection to verification and final storage in most workflows.

Sender uploads form: Populate template and add signer fields.
Signers authenticate: Signers confirm identity via configured method.
Signatures applied: Signers review and electronically sign.
Audit and store: Signed file and audit trail are retained.

Technical considerations for eSubmission

Choose a platform that supports secure signing, common formats, and integration with your document systems.

File formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: SMS, email, or KBA

Ensure the chosen environment provides audit trails, encryption in transit and at rest, and the ability to export signed records for retention.

Typical timing and when to provide the form

Timelines depend on the business process that requires ownership data. Below are common triggers and expectations.

Upon account opening:

Provide ownership details before finalizing bank or merchant accounts.

Before contract execution:

Supply current ownership for contracts with indemnities or payment terms.

On ownership change:

Update record within 30 days of material ownership changes.

Annual review:

Many organizations request refreshed ownership annually.

Record retention:

Store signed copies according to retention rules.

Core components to include in a professional declaration

A well-structured Business Ownership Declaration Form collects consistent facts, reduces follow-up, and creates an evidentiary record for third parties and internal controls.

Entity details

Registered business name, state of formation, and EIN or tax identification number, used to match the declaration to official records and filings.

Owner roster

Full legal names, ownership percentages, and types of ownership (direct, indirect, nominee) for each individual or entity with an ownership interest.

Beneficial owners

Identify natural persons exercising substantial control or owning prescribed percent thresholds; include control roles and relationship explanations where relevant.

Authority statement

A declaration that the signer is authorized to make representations on behalf of the entity, backed by a resolution or POA if required by the recipient.

Supporting evidence

Attach formation documents, operating agreements, share ledgers, or board resolutions to substantiate the ownership entries.

Signature and date

Signature block for authorized signer with printed name, title, signature, and date; notarization line if recipient mandates notarized attestation.

Data security and compliance features to require

Encryption: TLS 1.2/1.3; AES-256

Audit trail: Timestamped action history

Access controls: Role-based permissions

HIPAA support: BAA available

Certifications: SOC 2 Type II, ISO 27001

Tamper evidence: Document integrity checks

Key risks and consequences of inaccurate declarations

False statement penalty: Civil or criminal liability

Contract invalidity: Agreements may be challenged

Regulatory fines: KYC/AML penalties possible

Backup withholding: May trigger 24% withholding

Delays: Accounts or funding may be blocked

Reputational harm: Trust with partners reduced

Common mistakes to avoid

Submitting trade names instead of the legal entity name causes mismatches with government or bank records and leads to requests for corrected documents.
Rounding or omitting ownership percentages so they do not sum to 100% creates confusion and triggers follow-up verification.
Failing to include supporting evidence such as operating agreements or resolutions forces third parties to delay acceptance or require notarized affidavits.
Allowing an unauthorized person to sign without a resolution or POA risks rejection and may expose the organization to contractual disputes.

How organizations use the declaration in practice

Real-world scenarios show how the form streamlines onboarding, confirms authority, and supports compliance checks across industries.

Real Estate Transaction

A property manager requests the declaration to verify which partners control the managing company

One owner holds 60% while two minority owners share 40%
Attaching the operating agreement and signed declaration allowed the title company to close without further delay.

Banking Onboarding

A small business seeks a commercial account and the bank requires beneficial ownership data

The CEO signs to certify owners and percentages
Providing the completed form and ID copies accelerated account opening and satisfied KYC checks.

eSignature vendor comparison for signing and storing declarations

Core pricing and feature differences among common eSignature providers. signNow is listed first per platform 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 available	Yes, trial available	Yes, limited trial	Yes, limited trial
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	No envelope cap	No envelope cap	No envelope cap

Common questions about completing and eSigning the form

Answers to frequent issues and legal questions to help finalize a Business Ownership Declaration Form correctly and compliantly.

Need help? Contact support

Is an electronic signature legally valid?
Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and the Uniform Electronic Transactions Act (UETA) where adopted. Exceptions include certain wills and court filings; confirm on a case-by-case basis.
When is notarization necessary?
Notarization is required only when the recipient or state law specifically asks for a notarized attestation. Check state requirements: some states or title/financial institutions mandate notarized signatures for certain filings.
Can the form be signed remotely?
Remote electronic signatures are acceptable under ESIGN/UETA. If notarization is required, Remote Online Notarization (RON) may be permitted by state law; verify RON status with the relevant state notary authority.
How should errors be corrected?
Avoid handwritten corrections. Complete a new form or use an amendment addendum and re-sign. Attach an explanatory statement and supporting evidence to prevent acceptance delays.
How long must I keep signed forms?
Retain signed declarations at least as long as the active relationship plus applicable statutory periods. Follow IRS rules (minimum 3 years) and industry-specific retention such as HIPAA (6 years).
What privacy safeguards apply?
Limit personal identifiers to what is necessary, secure transmission with TLS, store with AES-256 encryption at rest, and request a Business Associate Agreement where PHI is involved.

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