Are electronic signatures valid?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states when intent, consent, attribution, and retention are present.

When is notarization required?

Not all recipients require notarization. Some banks or title-related transactions may ask for a notarized or RON-signed declaration; confirm with the requestor beforehand.

How do I correct an error after signing?

Do not alter a signed record. Prepare an amended declaration, have it signed by the same parties, and reference the original document for audit purposes.

Can I use RON for notarization?

Many states permit Remote Online Notarization with identity proofing and audio‑video recording; verify state RON rules and recipient acceptance before using RON.

Who must receive the original?

Original notarized copies are sometimes required by banks or government agencies; otherwise a certified digital copy with audit trail is often sufficient.

How long must I keep signed declarations?

Retain per applicable rules: IRS typically 3 years (IRC §6501(a)), HIPAA 6 years (45 CFR §164.530(j)), and longer where state law or industry rules require it.

Electronic Signature
Templates
Miscellaneous
New Business Ownership Declaration

New Business Ownership Declaration

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

New Business Ownership Declaration

This New Business Ownership Declaration (the "Declaration") is made as of by and between Transferor Name: and Transferee Name: .

WHEREAS

WHEREAS, Transferor is the lawful owner of the business known as Business Name: , organized as a Sole Proprietorship Partnership LLC Corporation Other formed on .

WHEREAS, Transferor desires to transfer and assign ownership interests in the business, and Transferee desires to acquire such interests on the terms and conditions set forth herein.

WHEREAS, the parties intend by this Declaration to record the current ownership composition and the terms of the transfer and to memorialize certain obligations, representations and covenants regarding operation, payment, confidentiality and governance.

DECLARATION OF OWNERSHIP

The parties hereby declare and agree that, as of Effective Date: Effective Date: , the ownership interests of the business are held as set forth below and such ownership percentages shall govern voting and economic rights unless amended in writing and signed by all owners.

OWNERS

Owner 1

Owner 2

If there are additional owners, list them on a separate attachment signed by all parties and attach as Exhibit A. Any subsequent change to ownership percentages shall be recorded in an amendment to this Declaration signed by all owners.

SCOPE OF WORK

Describe the operational responsibilities, managerial duties, or transition activities to be undertaken by Transferee in connection with this ownership change:

PAYMENT TERMS

Purchase Price: Initial Deposit:

Payment Schedule and Conditions

Late Fee: Interest on overdue payments shall accrue at the rate specified above and in absence of a specified rate, at 1.5% per month.

TERM AND TERMINATION

Term Commencement: . Termination Date (if applicable):

Either party may terminate this Declaration for material breach by the other party upon written notice and a cure period of days, provided that termination shall not relieve either party of obligations accrued prior to termination, including payment obligations and confidentiality obligations.

CONFIDENTIALITY

Each party shall maintain in confidence all non-public business, financial and technical information received from the other party in connection with the ownership transfer ("Confidential Information"). Confidential Information shall not be disclosed to any third party except as required by law or with the disclosing party's prior written consent. The obligations set forth in this paragraph shall survive termination of this Declaration for a period of five (5) years.

REPRESENTATIONS, WARRANTIES & INDEMNIFICATION

Transferor represents and warrants that it has good and marketable title to the ownership interests being transferred, free and clear of liens and encumbrances except as disclosed in writing. Transferee represents that it has the financial capacity to perform under the Payment Terms. Each party shall indemnify and hold harmless the other from any losses arising out of a breach of such party's representations, warranties, or covenants.

GOVERNING LAW

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

ENTIRE AGREEMENT

This Declaration, together with any exhibits and attachments hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations. Any amendment must be in writing and signed by all parties.

The parties acknowledge that they have read and understand this Declaration, have had the opportunity to obtain independent advice, and that the persons signing below have the authority to execute this Declaration on behalf of the respective parties.

Certification: The undersigned certify under penalty of perjury that the information provided in this Declaration is true, correct and complete to the best of their knowledge.

Transferor (Seller) Printed Name:

By:

Date:

Transferee (Buyer) Printed Name:

By:

Date:

What the New Business Ownership Declaration Is and When It’s Used

A New Business Ownership Declaration is a written statement that identifies owners, ownership percentages, and controlling parties for a newly formed business or a change in corporate ownership. It documents legal names, tax identification numbers, ownership interests, and signatures so banks, vendors, licensing authorities, or partners can verify control and tax reporting. The declaration often supports account opening, vendor onboarding, grant applications, or state/regulatory filings and may be requested by financial institutions for compliance with know-your-customer and beneficial-ownership rules.

Why a Clear Ownership Declaration Matters

A precise declaration reduces onboarding friction, supports compliance with KYC and tax reporting, and creates a clear public record of control for third parties. Accurate owner data helps avoid account holds, correct tax withholding, and disputes over authority or distributions.

Who typically completes and relies on this declaration

Providing a consistent, signed declaration speeds review and reduces follow-up questions from onboarding teams and regulators.

Business owners completing initial bank account or merchant onboarding forms
Corporate or LLC organizers providing documentation to state or federal agencies
Finance teams and payroll providers verifying ownership for tax and KYC purposes

Typical signers and their authority

Owner / Managing Member

The business owner or managing member signs to confirm ownership percentage, authority to represent the business, and to attest to accuracy. This signature authorizes banking relationships and tax reporting where required.

Corporate Officer / Authorized Signer

An officer (e.g., CEO, CFO) or person with delegated authority can sign on behalf of the entity when corporate documents or board resolutions authorize that individual to bind the company.

Essential parts of a professional declaration

A well-structured declaration is concise, includes legal identifiers, and contains signature blocks with dates and notarization fields when required.

Business identity

Legal business name, any DBA names, and formation jurisdiction to uniquely identify the entity.

Tax identifiers

EIN or SSN for sole proprietors to support tax reporting and backup withholding determinations.

Owner details

Full legal names, ownership percentages, addresses, and contact information for each owner or controlling person.

Authority statement

A short clause confirming the signer has authority to make the representation on behalf of the entity.

Signature and date

Signed name, printed name, title, and signature date; designate whether an electronic signature is permitted.

Notary / witness fields

Space for notary acknowledgement or witness signatures when a receiving party requires notarization.

Step-by-step: preparing and finalizing the declaration

Follow these sequential steps to prepare, verify, and submit a New Business Ownership Declaration.

01

Prepare: Gather formation documents, EIN, and owner IDs.
02

Populate: Complete business and owner fields, verify percentages total 100%.
03

Review: Confirm names, EIN, and authority language with counsel if needed.
04

Sign & deliver: Sign (and notarize if required), then deliver to requesting party.

Where to send the completed declaration

Different recipients require the declaration in different formats; confirm preferred delivery with the requestor before signing.

Bank or Financial Institution: Submit to the account opening or compliance team per their instructions.
Vendors and Suppliers: Provide as part of onboarding or vendor risk assessments.
State or Licensing Agencies: File with agency only if explicitly required by statute or rule.
Internal Records: Store a signed copy in corporate records and with the corporate secretary.

Options for electronic completion and verification

Configure your digital workflow to balance signer convenience and authentication strength based on the recipient’s requirements.

Field	Configuration
Signature type	Electronic signature with audit trail
Authentication	Email + SMS code or knowledge-based checks
Notarization	Add RON or in-person notary fields when needed
Storage	Retain signed PDF with certificate of completion

Digital signing considerations and integration points

Configure authentication level and storage location to match the receiving party’s compliance or audit requirements.

Supported formats: PDF, DOCX, and HTML
Common integrations: Salesforce, NetSuite, Google Workspace
Storage and retrieval: Cloud storage with access controls

Timelines and recommended deadlines

Timely submission and updates reduce compliance risk; the following deadlines are common expectations across recipients.

Initial Submission:

Provide on request during account opening or vendor onboarding.

Ownership changes:

Update within 30 days of ownership transfer or control change.

Tax reporting:

Keep records available for tax reporting periods and requests.

Notary retention:

Retain notary journal entries per state requirements.

Internal review:

Review annually or upon material corporate changes.

Key processing milestones from draft to filing

A typical processing sequence moves from internal approval to signature, optional notarization, and final filing or delivery.

01

Draft and Approve

Finalize owner details and confirm percentages internally.

02

Signatures Collected

Obtain signatures from all listed owners or authorized signers.

03

Notarization (if needed)

Complete RON or in-person notary steps per recipient instructions.

04

Deliver and Archive

Send to requestor and store the signed record in corporate files.

Common mistakes to avoid when preparing the declaration

Using informal or trade names instead of the legal formation name, which causes mismatches against state or bank records and slows processing.
Listing incorrect or incomplete tax identification numbers (EIN/SSN), triggering backup withholding or rejected vendor onboarding requests.
Failing to total ownership percentages to 100%, creating ambiguity about control and voting rights that leads to follow-up requests.
Not including an authority statement or supporting board resolution when an officer signs without explicit delegation, causing acceptance issues.

Penalties and legal risks tied to incorrect declarations

1099 Filing Penalties: $60–$330 per form (IRC §6721)

Intentional Disregard: $660+ per form, no cap (IRC §6721)

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

Backup Withholding: 24% withholding for missing/incorrect TIN

Account Holds: Banks may freeze accounts for unclear ownership

Contract Disputes: Incorrect authority can void transactions or cause liability

Security and compliance checks to include with the declaration

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

Audit trail: Detailed timestamps, IP addresses, and action logs

Certifications: SOC 2 Type II and ISO 27001 where available

HIPAA: BAA required for healthcare-related submissions

ESIGN / UETA: Compliant electronic signature frameworks

21 CFR Part 11: Available for regulated FDA workflows

Real-world examples of use

These excerpts show how organizations used ownership declarations to streamline onboarding and demonstrate acceptance in practice.

Optica Ventures (COO)

Optica used a standardized declaration for investor onboarding, speeding review.

The interface simplified customer completion and verification.
The COO reported the form was simple for both staff and customers, reducing follow-up and accelerating account setups.

Martin Properties (Founder)

A real estate firm digitized its ownership declaration for property trusts.

On-site signings dropped with e-sign workflows.
The founder noted the ability to execute documents online with compliance and security improved turnaround for closings and vendor onboarding.

Typical vendor pricing and feature considerations for eSignature solutions

Compare common plan and capability dimensions when choosing an eSignature solution for executing ownership declarations. Confirm vendor terms and enterprise requirements directly with each provider.

	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 (Business Premium)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Practical tips to reduce delays and disputes

Follow these best practices to make the declaration acceptable to banks, vendors, and regulators on first submission.

Use consistent legal names

Match the business and owner names to formation and tax records to avoid verification delays and identity mismatches.

Include authority documentation

Attach board resolutions or operating agreement excerpts when an officer signs without being an owner.

Choose appropriate authentication

Select SMS or KBA authentication for higher-assurance recipients and keep records of the method used.

Retain a certified copy

Keep a signed, timestamped PDF with the audit trail and any notary acknowledgement for the corporate record.

Frequently asked questions about New Business Ownership Declarations

Answers address common points of confusion: legality of e-signatures, notarization, updating records, and document storage.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states when intent, consent, attribution, and retention are present.
When is notarization required?
Not all recipients require notarization. Some banks or title-related transactions may ask for a notarized or RON-signed declaration; confirm with the requestor beforehand.
How do I correct an error after signing?
Do not alter a signed record. Prepare an amended declaration, have it signed by the same parties, and reference the original document for audit purposes.
Can I use RON for notarization?
Many states permit Remote Online Notarization with identity proofing and audio‑video recording; verify state RON rules and recipient acceptance before using RON.
Who must receive the original?
Original notarized copies are sometimes required by banks or government agencies; otherwise a certified digital copy with audit trail is often sufficient.
How long must I keep signed declarations?
Retain per applicable rules: IRS typically 3 years (IRC §6501(a)), HIPAA 6 years (45 CFR §164.530(j)), and longer where state law or industry rules require it.

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