There are certain elements that should be included in all official business correspondence. What defines a business letter and what guidelines should you observe when writing them? Find out here.

What is a business letter?

A business letter is any written communication or correspondence between two business entities or professionals that is directed to a specific recipient or group of recipients. Business letters are used to establish, maintain, or manage business relationships and often follow specific formatting and content guidelines.

What purpose do business letters serve?

In the U.S., business letters serve as a formal and professional means of communication between organizations, clients, and stakeholders. Their key purposes include:

  • Proposals and offers
  • Order confirmations and inquiries
  • Acknowledgments of receipt
  • Invoices and payment receipts
  • Pricing lists
  • Order forms
  • Personalized marketing letters (addressed to a named recipient)

The format of the letter—whether printed or digital (fax, email, etc.)—does not change its classification as a business letter. However, certain legal and informational requirements may apply depending on the business structure and context.

Note

If a business letter serves as initial written contact between business partners, it should include all relevant company information to establish transparency. For instance, a company registration number allows recipients to verify the sender’s legitimacy through local business registries or chambers of commerce.

The following types of written communication are not classified as business letters:

  • Internal company correspondence (e.g., emails or memos between departments, branches, or subsidiaries)
  • Mass marketing communications (e.g., direct mail, generic advertising materials sent to large groups)
  • Pre-filled business forms used in ongoing transactions (e.g., delivery notes, shipping confirmations, or pick-up notifications)

Business letters facilitate communication in both business-to-business (B2B) and business-to-consumer (B2C) interactions.

Business letters should be clearly distinguished from personal letters, which are intended for private, non-commercial communication.

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Required information for business letters

While business letters are used to establish contact and maintain professional relationships, there are no federal legal requirements for what must be included. However, businesses typically include standard company details to ensure clarity and professionalism, which are:

  • Company name (matching the legal business name)
  • Business address
  • Phone number & email address
  • Website (if applicable)
  • Date of the letter

Additional details may be included based on business structure or industry requirements.

Sole proprietorships

Business letters from sole proprietors typically include:

  • Business name (DBA, if applicable)
  • Owner’s full legal name
  • Business address

If operating under a fictitious name (DBA – “Doing Business As”), the owner’s personal name must also be included on official business correspondence.

Partnerships (General & Limited Partnerships)

Business letters from general partnerships (GP) or limited partnerships (LP, LLP) usually include:

  • Registered business name
  • Partnership designation (e.g., LLP, LP)
  • Primary business address

It is common (but not required) to list key partners’ contact information on official business correspondence.

Limited Liability Companies (LLCs)

For LLCs, business letters should include:

  • Company name (matching the registered LLC name)
  • LLC designation (e.g., “LLC” or “Limited Liability Company”)
  • Business address
  • Optional: Registered agent information (if relevant for legal or contractual purposes)

Corporations (Inc., Corp., PC, etc.)

Business letters from corporations typically include:

  • Legal company name
  • Entity designation (e.g., Inc., Corp., PC, etc.)
  • Business address
  • Optional: CEO or authorized signatory’s name (if required for contracts)

Corporations do not need to list all board members or executives in regular business correspondence.

Fact

Sometimes additional disclosures are required. If a corporation or LLC is in liquidation, this must be stated in official business communications. Regulated industries (e.g., finance, law, and healthcare) may require additional disclosures in compliance with federal or state laws.

How should a business letter look? Page structure and design

To ensure professional and effective communication, business letters should follow a standardized format. While there are no legal requirements for the structure and design of business letters in the U.S., using professional formatting enhances credibility and readability since poorly formatted letters can appear unprofessional and create uncertainty or distrust among recipients.

Page format

Business letters in the U.S. should be formatted on Letter-size paper (8.5 x 11 inches) in portrait orientation. The recommended page margins are:

  • Top margin: 1 inch (25.4 mm)
  • Bottom margin: 1 inch (25.4 mm)
  • Left margin: 1 inch (25.4 mm)
  • Right margin: 1 inch (25.4 mm)

Font and typography

There are no legally required fonts for business letters, but professional, easy-to-read fonts are recommended. Common choices include:

  • Arial
  • Times New Roman
  • Calibri
  • Helvetica

The recommended font size is 11 or 12 points for readability. If using a custom corporate font, adjust the size accordingly to maintain legibility.

Letterhead design

A business letterhead typically includes:

  • Company logo (optional but recommended)
  • Company name
  • Business address
  • Phone number, email, and website (if applicable)

Logos and design elements should be placed at the top of the page, ensuring they do not interfere with readability or printing.

Tip

Avoid placing design elements too close to the page edges, as they may fall outside the printable area.

Recipient address block

The recipient’s address should be formatted according to USPS mailing standards and placed one inch below the letterhead or, if there is no letterhead, below the sender’s address. The standard format includes:

Recipient’s name Recipient’s title (if applicable) Company name (if applicable) Street address City, State ZIP Code

Example:

John Smith Marketing Director ABC Corporation 123 Business Ave New York, NY 10001

Date placement

The date is placed one inch below the top margin or two lines below the letterhead. The recommended format for U.S. business letters is:

  • Month Day, Year (e.g., March 20, 2025)

Subject line (optional)

A subject line is placed two lines below the recipient’s address and is usually bolded.

Subject: Proposal for Partnership Agreement

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Salutation (greeting)

The greeting is placed two lines below the subject line (or recipient’s address if no subject is used). Formal business correspondence typically uses:

  • Dear [Recipient’s name],
  • Dear Mr./Ms. [Last name],
  • Dear Sir/Madam, (only if the recipient’s name is unknown)

For ongoing business relationships, a less formal approach may be used:

  • Hello [Recipient’s name],
  • Dear [First name],

The salutation ends with a comma or colon, depending on formality.

Letter body formatting

The body text should be:

  • Left-aligned
  • Single-spaced
  • Divided into short, clear paragraphs
  • Separated by blank lines

If a letter exceeds one page, the footer should contain page numbers (e.g., “Page 2 of 3”).

Tip

Use simple, professional language and avoid excessive formatting like underlining or decorative fonts.

Closing and signature

The closing phrase is placed two lines below the body text and is followed by the sender’s signature. Common business closings include:

  • Sincerely,
  • Best regards,
  • Yours truly,

After the closing, leave three blank lines for the signature and then type the sender’s name and title:

Best regards, [Signature] John Smith Marketing Director ABC Corporation

Attachments & enclosures

If additional documents are included, an enclosure or attachment note should be placed one or two lines below the signature block:

Enclosures: Business Proposal, Contract Draft

Footer and contact details

The footer (if used) should contain:

  • Company’s legal business name
  • Main office address
  • Phone number and website

Example:

ABC Corporation | 123 Business Ave, New York, NY 10001 | (555) 123-4567 | www.abc.com

Business letter – downloadable template

Here you can find our business letter template as a Word file for download :

Business_letter_template_US.docx

The dos and don’ts of writing a business letter

Dos

Be clear and concise

  • Business letters, whether printed or emailed, should be direct and to the point.
  • Most recipients receive multiple business communications daily**, so ensure your message is brief, clear, and purposeful.
  • Use a concise, relevant subject line for clarity.
  • Business letters should not exceed one U.S. Letter page (8.5 x 11 inches) unless absolutely necessary.
  • For complex information (e.g., tables, figures, or invoice details), include attachments instead of overloading the main letter.

Use a personal greeting

  • Address the recipient personally whenever possible.
  • If necessary, research the correct name and spelling of the contact person.
  • If the recipient’s name is unknown, use a neutral but professional greeting, such as:
    • Dear Hiring Manager, (for job applications)
    • Dear Customer Service Team, (for customer inquiries)
    • Dear Sir/Madam, (if no specific contact is available)

Use a postscript (PS) strategically

  • A postscript (PS) was traditionally used in handwritten letters but still serves a purpose in modern business writing.
  • In a business letter, use a PS to highlight important information or provide an extra note, such as:
    • A special offer or promotion
    • A website link for more details
    • A friendly reminder or follow-up request
  • The PS should be brief and relevant to avoid distracting from the main message.

Don’ts

Avoid clichés and outdated phrases

Write in a modern, reader-friendly style. Skip generic phrases, bureaucratic language, or formalities that feel outdated. Your letter reflects your company’s image—so aim for clear, direct language that’s tailored to your audience. A well-written, personalized letter shows respect and creates a lasting impression.

Don’t overlook spelling and grammar

Errors make your message seem unprofessional. This includes not just grammar and punctuation but also layout and structure. Always proofread your letters carefully—or ask a colleague or professional to review them.

Don’t use negative language

Even when delivering bad news, frame it positively. Instead of saying “Unfortunately, I can’t answer that,” try “Let me look into that and get back to you.” Offer solutions, not dead ends. Avoid harsh or overly formal wording, and choose a tone that is courteous and constructive.

Avoid passive voice

Passive sentences can feel vague or impersonal. Active voice, on the other hand, is clear and engaging. Compare:

“Your request will be processed as soon as possible”

vs.

“Mr. Smith will process your request as soon as possible.”

The second version is more reassuring and direct.

Skip overly complex sentences

Long, complicated sentences make your letter harder to follow. Use straightforward language, short paragraphs, and a logical flow to ensure clarity and readability.

Please note the legal disclaimer for this article.

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