What is this document used for?

A Business Validation Statement formally attests to a company's identity, authority, and specified facts for onboarding, contracts, and payments, providing documentary evidence to counterparties and auditors.

Can the statement be signed electronically?

Yes. Electronic signatures are generally legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure required consumer disclosures and authentication are in place for certain transactions.

When is notarization required?

Notarization is required by some counterparties or states for specific acknowledgements; check contract instructions and state rules, and use RON or in-person notarization when accepted.

Who must sign the statement?

An authorized officer or person with documented authority should sign. Attach a board resolution or power of attorney when authority is delegated.

How do I correct a submitted statement?

If errors are found, prepare an amended statement signed by an authorized signer, attach an explanation, and resubmit to the requesting party to maintain a clear audit trail.

How long should the record be kept?

Retain completed statements for at least three years after filing and longer where industry rules apply; HIPAA requires six years for health records and IRS rules require three years for tax records.

Electronic Signature
Templates
Miscellaneous
Business Validation Statement

Business Validation Statement

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

Business Validation Statement

WHEREAS, Business Name: (the "Business") is engaged in lawful commercial activities and seeks validation of certain corporate and operational facts; and

WHEREAS, Validator Name: has the capacity and expertise to perform business validation services under the terms set forth in this Statement; and

WHEREAS, Effective Date: the Parties desire to set forth the scope, payment, and legal terms under which validation will be performed.

Validation Details

Legal Business Name DBA / Trade Name (if any) Entity Type (select all that apply)

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

Jurisdiction of Formation Formation Date Employer Identification Number / Tax ID Principal Business Address Primary Contact for Validation

Scope of Work

Validator shall perform verification of corporate existence, authority of signatories, ownership structure, registration and good-standing status, and review of provided corporate records. Validator's validation does not constitute a legal opinion unless expressly stated in writing.

Detailed Scope of Work

Payment Terms

The Business shall pay the Validator the fees for services as set forth below. Fees are non-refundable except as explicitly provided in this Statement.

Validation Fee (USD) Payment Schedule and Billing Late Payment Fee

Term and Termination

This Statement commences on Start Date: and, unless earlier terminated in accordance with this Section, shall expire on End Date: .

Either Party may terminate this Statement for convenience upon written notice to the other Party no fewer than days prior to the effective termination date. Termination for material breach is permitted immediately upon written notice if the breaching Party does not cure within thirty (30) days of receipt of notice.

Confidentiality

Each Party shall maintain in strict confidence all Confidential Information disclosed by the other Party in connection with this Statement. "Confidential Information" means non-public business, financial, technical, contractual and customer information. Confidential Information shall not include information that is or becomes publicly available through no fault of the receiving Party, or is lawfully obtained from a third party without restriction. Receiving Party shall use Confidential Information only for purposes of performing obligations under this Statement and shall not disclose Confidential Information except to its employees, agents or advisors who have a need to know and are bound by confidentiality obligations at least as protective as those set forth herein. These confidentiality obligations survive termination for a period of three (3) years.

Governing Law

This Statement shall be governed by and construed in accordance with the laws of the jurisdiction indicated below, without regard to conflicts of law principles.

Representations and Certifications

The Business hereby certifies that the information provided in this Statement is true, complete and accurate to the best of its knowledge, that the signer is duly authorized to execute this Statement on behalf of the Business, and that there are no undisclosed material legal actions or regulatory proceedings that would reasonably affect the outcome of the validation.

The information provided is true and correct.
Signatory is authorized to bind the Business.
Execution does not violate any agreement, law, or court order.

Entire Agreement

This Statement, together with any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. No amendment or modification of this Statement shall be binding unless executed in writing by both Parties.

Notices

Notices under this Statement shall be in writing and delivered to the addresses set forth below or as otherwise provided in writing by the Parties. Notice is effective upon receipt.

Business Notice Address Validator Notice Address

Business (Client):

By:

Date:

Validator (Service Provider):

By:

Date:

What a Business Validation Statement Is and When It Applies

A Business Validation Statement is a formal document used to confirm a company's legal existence, authority to transact, and the validity of specified business information for a particular transaction or relationship. Typical uses include vendor onboarding, government contracting, procurement verification, and payment processing. The statement may attest to corporate formation details, authorized signers, tax identification, and any regulatory licenses needed for the activity at issue. It is often requested by counterparties, banks, or government entities to reduce risk and document due diligence.

Why a clear Business Validation Statement matters

A concise Business Validation Statement helps counterparties verify authority, reduce onboarding delays, and establish an audit record of representations made by the company. Properly completed statements limit downstream disputes and support compliance with procurement and banking due diligence requirements.

Who typically completes and relies on this statement

Completing the statement accurately reduces verification cycles and supports recordkeeping obligations for both the requester and the company providing the information.

Procurement teams verifying vendor identity and contracting authority during onboarding and bid evaluations.
Banks and payment processors confirming legal entity and authorized signers for account setup and ACH origination.
Compliance and legal departments documenting due diligence for anti-fraud, AML, and contract validation purposes.

Step-by-step completion checklist

Complete the form in sequence, attach required documents, and confirm signer authority before submission.

01

Prepare documents: Gather formation records, EIN confirmation, and board resolution.
02

Fill form fields: Enter names, addresses, dates, and authority statements accurately.
03

Attach evidence: Upload certificates of good standing or formation documents.
04

Sign and submit: Authorized signer signs; route to requester with audit record.

How to configure an online completion workflow

Set up routing, required fields, and authentication to match your compliance needs before distributing the statement for signature.

Field	Configuration
Required fields	Mark Legal Entity, EIN, and Signature required.
Signer order	Choose single signer or sequential multi-signer flow.
Authentication	Select email, SMS code, or stronger ID verification.
Attachments	Require upload of formation or good-standing documents.

Typical routing and submission steps

A standard process ensures a reproducible audit trail and faster verification for all parties.

Upload: Sender uploads the statement and supporting files.
Place fields: Sender assigns signature, date, and data fields.
Authenticate: Signer verifies identity per chosen method.
Complete: Signed document and audit trail are saved and returned.

Technical considerations for electronic completion

Ensure the platform you use supports the required authentication level (consumer disclosures, HIPAA protections, notarization) and preserves tamper-evident signed copies for recordkeeping and audits.

File formats: PDF, DOCX, or fillable forms supported.
Authentication: Email, SMS, or KBA options available.
Audit trail: System records IP, timestamp, and actions.

Consequences of incorrect or incomplete validation statements

Tax penalties: Incorrect TINs can trigger backup withholding at 24%

Information return fines: 1099 late filings incur $60–$330 per form

I-9 violations: Paperwork errors risk fines from $281–$2,789

Contract disputes: Unauthorized signatures can void agreements

Fraud exposure: False representations risk civil and criminal liability

Operational delay: Incomplete validation prolongs onboarding and payments

Common preparation mistakes to avoid

Using a trade name instead of the registered legal entity causes mismatches during verification and can delay or block account setup.
Failing to attach formation documents or certificates of good standing often forces a request for supplemental materials and extends processing time.
Listing an unauthorized signer or failing to provide a board resolution creates enforceability risk and may render the signature invalid.
Entering inconsistent dates or formats (e.g., international date formats) can confuse reviewers and trigger repeat verification requests.

Security and compliance elements to include with electronic submissions

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Audit trail: IP, timestamps, and action logs

Certifications: SOC 2 Type II; ISO 27001

Regulatory support: ESIGN, UETA compliance

Healthcare support: HIPAA compliant with BAA

Practical tips for accurate, efficient completion

Follow consistent naming, attach authoritative documents, and select appropriate authentication to avoid rework and preserve enforceability.

Use authoritative records

Always attach formation certificates, good-standing certificates, or board resolutions. These documents are primary evidence for entity status and signer authority and reduce follow-up requests.

Confirm signer role

Verify the signer's title and that corporate records support their authority. For officer-level signatures, include a board resolution when requested to prove delegation of signing power.

Standardize formats

Use MM/DD/YYYY for dates, nine-digit EIN format, and consistent address fields. Standardization reduces parsing errors in automated workflows and downstream reporting.

Preserve audit trails

Maintain tamper-evident signed copies, audit logs, and attached evidence for the full retention period required by regulators and contract terms.

Real-world examples of Business Validation Statements in use

These brief examples show how organizations use validation statements to speed onboarding and document authority in common scenarios.

Optica Ventures — Vendor Onboarding

Optica used a validation statement to confirm vendor formation and signatory authority quickly.

The statement attached formation documents and an officer resolution.
As COO Brian Fitzgibbons noted, the clear, streamlined process eased customer interactions and reduced back-and-forth during vendor setup.

Fertility Centers — Compliance Record

A medical center used the statement to document authorized billing agents and tax details for third-party payers.

Supporting certificates and a designated signer were included.
John Butler cited the platform flexibility and compliance focus that helped preserve audit records and maintain operational continuity.

How a Business Validation Statement differs from similar documents

Compare the Business Validation Statement with related documents to choose the most appropriate form for risk and compliance needs.

Criteria	Business Validation Statement	Vendor Questionnaire
Purpose	confirm legal status	collect operational details
Typical attachments	formation records	insurance certificates
Authentication	signer authority proof	self-declared responses
Enforceability	higher if signed by authorized officer	lower if unsigned

eSignature platform comparison for signing Business Validation Statements

Pricing and feature differences affect cost and compliance for electronic execution; signNow is listed first for comparison across common plan criteria.

	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 vendor	Varies by vendor	Varies by vendor	Varies by vendor
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	Varies	Varies

FAQs and troubleshooting for Business Validation Statements

Answers to common questions about execution, e-signature validity, notarization, and recordkeeping for the Business Validation Statement.

Need help? Contact support

What is this document used for?
A Business Validation Statement formally attests to a company's identity, authority, and specified facts for onboarding, contracts, and payments, providing documentary evidence to counterparties and auditors.
Can the statement be signed electronically?
Yes. Electronic signatures are generally legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure required consumer disclosures and authentication are in place for certain transactions.
When is notarization required?
Notarization is required by some counterparties or states for specific acknowledgements; check contract instructions and state rules, and use RON or in-person notarization when accepted.
Who must sign the statement?
An authorized officer or person with documented authority should sign. Attach a board resolution or power of attorney when authority is delegated.
How do I correct a submitted statement?
If errors are found, prepare an amended statement signed by an authorized signer, attach an explanation, and resubmit to the requesting party to maintain a clear audit trail.
How long should the record be kept?
Retain completed statements for at least three years after filing and longer where industry rules apply; HIPAA requires six years for health records and IRS rules require three years for tax records.

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