Are electronic signatures legal? What a small business needs to know

Updated October 31, 2026

In the US, an electronic signature on an ordinary business contract is generally as valid as ink, with a short list of exceptions. This guide covers typed and drawn signatures, what to keep as a record, and what doesn't qualify.

Yes. In the United States, a signature or contract cannot be denied legal effect just because it is electronic. That comes from the federal E-SIGN Act, 15 U.S.C. 7001, and from state laws such as the Uniform Electronic Transactions Act (UETA). For a quote, a service agreement, a work order or a delivery note, an electronic signature will generally do the job.

That does not make every electronic signature good evidence, and it does not cover every document. Wills, family law matters and certain legal notices sit outside the federal rule. The law also won't save a signature you cannot tie to a person, or an agreement you cannot produce later. Most real disputes are about those proof problems, not about whether e-signatures are allowed. This guide is general information about US law, not legal advice. If a contract is large or unusual, ask a lawyer in your state.

What the law says

E-SIGN applies to transactions in or affecting interstate or foreign commerce. Its core rule has two parts: a signature, contract or other record may not be denied legal effect solely because it is electronic, and a contract may not be denied effect solely because an electronic signature or record was used to make it.

UETA is a uniform law that each state passes for itself, so the text lives in your state's code. Ohio's version is typical: a record or signature "may not be denied legal effect or enforceability solely because it is in electronic form". If a law requires a writing or a signature, an electronic one can satisfy it. 15 U.S.C. 7002 explains how a state's enactment of UETA fits alongside the federal act. Not every state's law is identical. New York, for one, has its own statute, and section 304 of its State Technology Law gives an electronic signature the same validity as one affixed by hand.

The federal definition is deliberately wide. An electronic signature is "an electronic sound, symbol, or process, attached to or logically associated with a contract or other record" and "executed or adopted by a person with the intent to sign the record". No particular technology is named. The question is whether the person meant to sign this record.

Typed or drawn: does it matter?

Not to the definition. A typed name, a ticked box, a finger signature and a click on an Accept button can all be a "symbol or process". What changes is how easily you can prove intent later.

For everyday small business work, a typed name plus a clear statement and a date is sound. A drawn signature adds some psychological weight, because people slow down when they sign. It adds less as evidence than most people assume.

Three things that make a signature hold up

Agreement to do it electronically. UETA applies where the parties have agreed to transact electronically, and that agreement can be read from the context and their conduct. A customer who opens your link and signs has probably agreed. E-SIGN also says nobody is required to use or accept electronic records or signatures, so if someone asks for paper, give them paper.

Attribution. Under Ohio's section 1306.08 and its equivalents, a signature belongs to a person if it was their act, and that can be shown in any way. In practice, that means sending the link to their own email or phone and keeping the record of doing so.

A copy everyone can keep. If a law requires a contract to be in writing, E-SIGN says an electronic version can be denied effect if it cannot be stored and accurately reproduced by everyone entitled to keep it. So send the signer a copy. A screen they can never get back to is not good enough.

Selling to consumers: an extra step

There is a further rule under section 7001(c). Where a law requires information to be given to a consumer in writing, the electronic version counts only if the consumer has clearly agreed to it. They must be told how to withdraw that agreement, how to get paper copies, and what they need to open the records.

This does not apply to every consumer contract. It applies where another law demands written notice. If yours might, get advice on the disclosure wording.

What to keep as a record

E-SIGN says a required record can be kept electronically if it accurately reflects the information and stays accessible and reproducible for as long as the law requires. For each signed document, keep:

1. The exact text they signed, including the price and every term.
2. The signer's name, and how you reached them (the email address or phone number).
3. The date and time of signing.
4. The signature itself, whether typed, ticked or drawn.
5. The message that sent the document, and any reply.
6. Any later change, as a new signed document. Don't overwrite the old one.

Store it as a PDF in a folder you control, named by customer and date. If a third-party tool holds your only copy, you depend on that tool still existing when the dispute comes.

What doesn't qualify

15 U.S.C. 7003 lists what the general rule does not cover.

Two more cautions. E-SIGN leaves other rules alone apart from those about being written, signed or non-electronic, so a contract that is unfair or missing a required term is not rescued by being signed online. And state law can add its own limits, so check anything that involves real estate, notarising or witnessing.

A worked example

Say you run a cleaning company and you're signing up a dental office for a 12-month contract at $200 a month, $2,400 in all.

1. You write the terms in plain sections: scope, price, notice period, insurance.
2. You email the office manager, at her work address, a link to the agreement.
3. She reads it, types her full name, ticks the box and taps sign.
4. You save a PDF of the signed agreement and email her a copy the same day.
5. Three months later the scope changes. You send a short new document for her to sign instead of editing the original.

If there is ever a dispute over the notice period, you can show the exact terms, who signed, where the link went and when. That is a stronger position than a paper contract you can't find.

Wording to copy

Above the signature:

By typing my name and ticking this box, I agree to these terms and intend this as my signature. I agree to sign and receive this document electronically.

In the message that sends it:

Hi Priya, here's the cleaning agreement we discussed: 12 months at $200 a month. Please read it and sign at the link. You'll get a copy for your records. If you'd rather sign on paper, tell me and I'll send one.

For a change to a signed contract:

This adds Saturday cleaning at $40 a visit from March 1. Everything else in the agreement dated January 12 stays the same.

Common mistakes

• No statement of intent. A name in a box with no words around it invites the argument that it wasn't meant as a signature.
• Changing the terms after signing. Keep signed versions fixed. For extra work mid-job, use a change order.
• No copy for the customer. It weakens your position and annoys them.
• Using a shared inbox with no record of who received it. Attribution gets harder.
• Assuming the method fixes the deal. A valid signature on a vague scope is still a vague scope.

On Programmable, a service agreement is signed with a typed name, a tick and an optional drawn signature, and you're told when it's signed. The name, the time and an image of the signature come back to you, and any page can be saved as a PDF for your files. A consent form works the same way, with the drawn signature required.

Outside the US

In the UK, section 7 of the Electronic Communications Act 2000 makes an electronic signature admissible as evidence of authenticity or integrity. Article 25 of the UK's retained eIDAS text says a signature can't be denied effect or admissibility solely for being electronic. In the EU, the European Commission's FAQ confirms the same baseline under eIDAS, with only "qualified" signatures given the equivalent effect of a handwritten one across member states. National law still matters, so check before you rely on this abroad.

Questions

Are electronic signatures legally binding in the US?

Generally yes. Under E-SIGN and state laws such as UETA, a signature or contract can't be denied legal effect solely because it is electronic. Exceptions include wills, family law matters and certain notices.

Is a typed name a legal signature?

It can be. The federal definition covers an electronic sound, symbol or process adopted with the intent to sign, so a typed name can qualify when the person clearly means it as their signature.

Do I need special e-signature software?

E-SIGN does not name any technology. What matters is showing who signed, that they meant to, and exactly what they signed, and keeping a copy that both sides can get at.

Can I require a customer to sign electronically?

E-SIGN does not force anyone to use or accept electronic signatures. If a customer prefers paper, offering it is the simplest answer. This is general information, not legal advice.