Is an electronic signature valid?

Yes. Electronic signatures are generally legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA (adopted by most states) provided intent, consent, attribution, and durable record retention are satisfied.

When is notarization required?

Notarization depends on the recipient and state law. Some banks or agencies insist on a notarized signature or a notarial acknowledgment; check the receiving party and state notary requirements.

Who can sign for the business?

An authorized officer or an individual designated by corporate resolution may sign. Corporate bylaws or articles may set signing authority; attach a board resolution when requested.

How do I revoke a representative's authority?

Revoke in writing, date the revocation, notify affected third parties, and retain proof of delivery. For tax or public filings, follow the agency-specific procedure for revocation and update records promptly.

What if the recipient rejects the form?

Confirm the rejection reason (e.g., missing notarization, name mismatch) and supply corrected documentation; keep records of communications to show good-faith attempts to cure defects.

Are remote notarizations acceptable?

Many states permit Remote Online Notarization (RON) with identity proofing and audio-video recording; verify the state's RON rules and the recipient's acceptance before relying on RON.

Electronic Signature
Templates
Miscellaneous
Business Use of Representative Form

Business Use of Representative Form

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

BUSINESS USE OF REPRESENTATIVE FORM

This Business Use of Representative Form (the "Agreement") is entered into as of Effective Date: by and between Client Name: and Representative Name: .

WHEREAS

WHEREAS, Client is engaged in lawful business activities and requires an authorized representative to act on Client's behalf for limited matters described herein; and

WHEREAS, Representative has the competence and authority to perform the actions delegated by Client and agrees to perform such actions in accordance with the terms of this Agreement.

WHEREAS, the parties desire to set forth the scope, duties, compensation, confidentiality obligations, and other terms governing the Representative's authority to act for Client.

PARTY INFORMATION

Client Entity Type

Individual Corporation LLC Partnership Other:

Client Address Representative Address

SCOPE OF REPRESENTATIVE AUTHORITY

Representative is authorized to act on behalf of Client only to the extent expressly set forth in this Agreement. The specific authorized duties and limitations are described below. Representative shall not bind Client beyond the express authority granted.

Detailed Scope of Work

Representative authority includes the following permitted actions (check all that apply):

Sign contracts on behalf of Client within the scope described above
Access and manage specified business accounts designated in writing by Client
Negotiate terms with third parties consistent with Client instructions
Receive or accept deliveries and documents related to the above matters
Other:

PAYMENT TERMS

As compensation for services performed pursuant to this Agreement, Client shall pay Representative in accordance with the terms set forth below.

Compensation Amount Payment Schedule Late Payment Fee

TERM AND TERMINATION

This Agreement commences on Start Date: and continues until End Date: unless earlier terminated as provided herein.

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to the effective termination date. Termination for cause may be immediate where the terminating party provides written notice of material breach and the breaching party fails to cure within 10 days of such notice.

CONFIDENTIALITY

Representative shall hold in strict confidence all non-public, proprietary, or confidential information disclosed by Client or accessed by Representative in connection with performing duties under this Agreement ("Confidential Information"). Representative shall not disclose, use, copy, or permit the use of Confidential Information except as necessary to perform authorized duties. This obligation survives termination of this Agreement for a period of three (3) years.

INDEMNIFICATION

Representative shall indemnify, defend and hold harmless Client from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Representative's gross negligence, willful misconduct, or breach of this Agreement. Client shall similarly indemnify Representative for claims resulting from Client's instructions that are unlawful or outside the scope of authority granted herein.

LIMITATION OF AUTHORITY

Representative has no authority to: (a) create or assume debts or liabilities on behalf of Client beyond expressly delegated authority; (b) transfer or assign ownership interests in Client's business; or (c) make unilateral material changes to Client's corporate or tax elections. Any action outside of the scope requires prior written authorization by Client.

NOTICES

Client Notice Contact Representative Notice Contact

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 conflicts of law principles. Any dispute arising under this Agreement shall be resolved by the state or federal courts located in that state, and the parties hereby submit to the exclusive jurisdiction and venue of those courts.

ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior and contemporaneous agreements, understandings, negotiations and communications, whether written or oral. Any modification or amendment to this Agreement must be in writing and signed by both parties.

REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has the full right, power and authority to enter into and perform its obligations under this Agreement, and that the individual signing on its behalf is authorized to bind the party.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect. The headings in this Agreement are for convenience only and shall not affect interpretation.

Client

Printed Name:

By:

Date:

Representative

Printed Name:

By:

Date:

What the Business Use of Representative Form Is and when it applies

The Business Use of Representative Form documents a business's appointment of an individual or agent to act on its behalf for specific transactions or filings. Typical uses include authorizing a person to sign contracts, access tax records, interact with government agencies, manage banking matters, or file corporate documents. The form identifies parties, defines the representative's scope and duration, and records signatures and dates. When executed correctly, it creates a clear record of delegated authority that parties, banks, and regulators can rely on for routine and legally significant business actions.

Why organizations use a Business Use of Representative Form

A Business Use of Representative Form clarifies who may legally act for the business, reduces transactional delays, and creates an evidentiary record for banks, tax authorities, and counterparties.

Typical users and situations for this form

This form is used across organizations when an owner, officer, or manager needs to delegate specific business functions to another person or firm.

Small-business owners delegating tax filing or banking signatory authority during travel or absence.
CFOs or controllers appointing external accountants, tax preparers, or payroll vendors to act on behalf of the company.
In-house legal teams granting limited, transaction-specific authority to outside counsel or sales agents.

Use the form when you need documented, time-bound authority that third parties can verify; adjust the scope to limit risk.

Step-by-step: completing the Business Use of Representative Form

Follow these sequential steps to prepare the form so it meets common bank, tax, and agency expectations.

01

Collect corporate info: Gather legal entity name, EIN, and formation state before filling the form.
02

Define authority: Write precise, limited powers and monetary caps to constrain the representative's actions.
03

Sign and date: Have an authorized officer sign in ink or via an accepted eSignature and date the form.
04

Authenticate as required: Add notarization, witness, or additional authentication if the recipient or state requires it.

How the authorization process typically flows

This sequence shows common routing from form preparation to acceptance by third parties.

Prepare form: Draft with exact names, scope, and dates; attach supporting docs.
Internal approval: Officer or board signs following corporate authorization rules.
Authentication: Notarize or record witnessing if required by recipient or state law.
Deliver to recipient: Send to bank, agency, or vendor with supporting identity documents.

Configuring a digital workflow for this form

When automating the form, configure fields and authentication to match the recipient's acceptance criteria.

Field	Configuration
Representative Name	Required text field; validate with full-name pattern
Authority Description	Multi-line required field with character limit; use templates
Signature	eSignature field; allow guest signer if permitted
Authentication	Email plus SMS code or KBA where higher assurance is needed

Digital signing and submission requirements

Confirm the recipient's electronic acceptance rules before sending by eSignature.

Accepted formats: PDF or PDF/A preferred for notarized submissions
Signer authentication: Email + SMS or identity proofing when banks or agencies require higher assurance
Audit trail: Include timestamp, IP, and signer attribution for evidentiary purposes

If a recipient requires in-person notarization or specific witness counts, use a hybrid workflow that combines eSigning with local notarization or recorded RON where permitted.

Core parts to include in a professional Business Use of Representative Form

A complete form includes identity details, scope, dates, signatures, authentication, and supporting attachments so third parties can verify authority without follow-up.

Identifying information

Business legal name, EIN, formation state, and representative's legal name and contact details are required to match records.

Scope of authority

List precise powers, any monetary limits, and excluded acts to avoid overbroad delegations.

Term and effective dates

Specify the start and end dates or revocation conditions; clarity prevents disputes about continuing authority.

Signature and title

Authorized officer must sign and include printed name and corporate title to establish internal authorization.

Authentication evidence

Notarial acknowledgement, witness signatures, or higher-level eSignature authentication increases acceptance by banks and agencies.

Supporting documents

Attach board resolutions, power-of-attorney references, or corporate minutes when recipient requests proof of internal authorization.

Security and compliance items to include or verify

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

Audit trail: Timestamped logs, IP, and action history

HIPAA: BAA required for PHI handling

ESIGN / UETA: Meets federal and state e-sign requirements

21 CFR Part 11: Available for FDA-regulated records

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

Common preparation mistakes to avoid

Vague authority language that allows unintended actions or broad discretion.
Mismatched names between the form and government IDs or formation documents.
Skipping notarization when the recipient requires it for acceptance.
Neglecting to set an expiration or revocation procedure for the delegation.

Risks and potential penalties from improper or incorrect forms

Tax reporting fines: 1099 penalties: $60 / $130 / $330 per form depending on lateness

Intentional disregard: Penalty of $660+ per form with no maximum cap

I-9 paperwork fines: $281–$2,789 per violation for employment form failures

Backup withholding: 24% withholding when TIN is missing or incorrect

Rejected transactions: Banks may refuse actions if authentication or notarization are absent

Contract invalidation: Overbroad delegation can lead to disputes and contract challenges

Timing considerations and deadlines to note

Track effective dates, tax reporting timelines, and revocation timing to avoid late filings or unintended authority windows.

Effective date:

Set in MM/DD/YYYY; governs when authority starts

Revocation notice:

Provide written revocation; allow time for third-party processing

Tax reporting:

Ensure representative files returns by IRS deadlines (e.g., Jan 31 for 1099-NEC)

Notary retention:

Recordings or journals may be required for RON retention periods

Agency response:

Allow several business days for banks or agencies to validate authority

Key milestones from delegation to acceptance

Follow these stages so the form is accepted and the representative can act without delay.

01

Draft and review

Prepare form with correct names and scope and obtain internal approvals.

02

Sign and authenticate

Officer signature plus notarization or eAuthentication as required by recipient.

03

Deliver to recipient

Send original or certified copy with attachments to bank or agency.

04

Recipient verification

Third party verifies identity and supporting documents before enabling access.

eSignature vendor comparison for completing and sending this form

This table compares common vendor features and starting prices relevant to preparing, authenticating, and delivering a Business Use of Representative Form electronically.

	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 by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about the Business Use of Representative Form

Answers to common legal, authentication, and submission questions when preparing or accepting the form.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are generally legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA (adopted by most states) provided intent, consent, attribution, and durable record retention are satisfied.
When is notarization required?
Notarization depends on the recipient and state law. Some banks or agencies insist on a notarized signature or a notarial acknowledgment; check the receiving party and state notary requirements.
Who can sign for the business?
An authorized officer or an individual designated by corporate resolution may sign. Corporate bylaws or articles may set signing authority; attach a board resolution when requested.
How do I revoke a representative's authority?
Revoke in writing, date the revocation, notify affected third parties, and retain proof of delivery. For tax or public filings, follow the agency-specific procedure for revocation and update records promptly.
What if the recipient rejects the form?
Confirm the rejection reason (e.g., missing notarization, name mismatch) and supply corrected documentation; keep records of communications to show good-faith attempts to cure defects.
Are remote notarizations acceptable?
Many states permit Remote Online Notarization (RON) with identity proofing and audio-video recording; verify the state's RON rules and the recipient's acceptance before relying on RON.

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