While all businesses sign documents and forms, startups tend to encounter a high volume of complex, specialized paperwork, including legal, financial, and intellectual property (IP) documents. Signature rules (e.g., what format a signature needs to be in) can vary across these documents.

If your startup is executing a contract or other legally binding agreement, it’s important to know how the parties must sign. A wet signature is done in person with paper and ink. An electronic signature (e-signature) can serve the same purpose but might not always be an option.

Below, we’ll explore how a wet signature, specifically, works, when one is required, and how to determine which type of signature you need on a document to prevent it from being rejected or considered invalid.

Key takeaways

• A wet signature is done by hand using pen and paper. The fact that it uses ink is why it’s called a wet signature.

• Some situations might require a startup founder to use a wet signature. Examples include filing forms to specific state agencies, completing loan documents, and doing business with a counterparty that uses paper-based processes.

• When you request a signature, you cannot require the other party to sign electronically. If you send a document electronically, they can still print it out and sign it physically.

What is a wet signature?

A wet signature is a type of legally binding signature used to sign paper documents manually. The term “wet” refers to the ink from the pen used to sign. A wet signature must be done in person. In contrast, e-signatures are typically added to documents remotely using secure software.

If you’re going to provide a wet signature, you’ll need to sign a paper copy of the document. You might need to receive it by mail or courier, print it out, or have the document physically given to you in person to sign. E-signatures are often more convenient for signing paperwork, especially if you’re doing business remotely, because they don’t require physical delivery. The Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce (ESIGN) Act make it legal to e-sign many types of business documents. But e-signatures might not be legally binding in all situations. Wet signatures, meanwhile, are legal to use on all types of documents in the US.

When is a wet signature still required?

Generally, a wet signature must still be used in the following situations.

• Documents that require notarization: When a document has to be notarized, you usually need to physically sign it in the presence of a notary. While some documents can be notarized electronically, others have stricter rules. For example, if you have a vehicle for your business and are transferring the title, your state might require a wet signature and an in-person notary public.
  
• Specific court filings: Under US law, a wet signature must be used on official court documents, court orders, and court notices; e-signatures are invalid. Some US bankruptcy courts, for example, require certain documents to be signed with ink. Probate courts also typically require the original signed copy of a will to open the probate process.
  
• Some real estate transactions: Real estate documents such as property deeds and mortgages, which must be recorded with the county, require a wet signature.
  
• Certain international agreements: Wet signatures might still be needed to sign paperwork when you do business in countries that haven’t adopted e-signature standards.
  
• Filing forms to specific state agencies: For example, if your business sells alcohol, you might need to provide notarized, sworn affidavits with wet signatures.
  
• Certain loan documents: A wet signature is likely to be required if you’re securing a business loan and conducting an in-person or hybrid closing.
  
• Doing business with a counterparty with paper-based processes: If your company is bidding on a government contract, you might need to provide a notarized bid guarantee with a wet signature.
  

How can you tell which type of signature is needed?

These tips can help you understand which type of signature is needed when you sign documents and help prevent potential legal issues or business delays.

Review the signing instructions

Read the directions on the document or form you’ve been asked to sign, as they can vary, and any errors in signing can render the document invalid or cause it to be rejected. For example, under the UETA, e-signatures are considered legally valid only if there’s evidence of a clear intent to sign (e.g., typing your name into a field) and consent to sign, usually by checking a digital box next to text that reads, “I agree.”

Ask the requesting party which signatures are options

If you’re unsure what type of signature is needed, ask the requesting party and confirm that all laws for using e-signatures are being properly followed. Otherwise, the executed documents might not be valid. US law, for instance, requires e-signatures to be “clearly associated” with a record, such as an electronic sound, symbol, or process. There must be a clear, auditable trail as well that shows who signed the document and when.

Get legal advice

Consulting an attorney before you sign a document can help you understand what type of signature is required. This might not be necessary for every document you sign for your startup, but it could be worthwhile before you sign high-stakes paperwork, such as your business’s legal and banking documents.

It’s important to note that when you request a signature, you cannot require the other party to sign electronically. You can still securely send documents and contracts electronically, but the other party can choose to print them out and sign with a wet signature.

What to ask before signing something by hand: A quick checklist

Here’s a simple checklist to review before you use a wet signature to sign documents:

• Did the counterparty or agency explicitly say that a wet signature is required? If not, can an e-signature be used instead?

• Is a notary required? If so, is e-notarization an option? Or does it have to be done in person?

• Will the document be filed with a local government office? If so, what are its signature requirements?

• Is the document crossing county or state lines, or jurisdictions? If so, are there any specific signature rules?

• Will the document be used in another country? If so, would it be beneficial to consult an attorney to ensure everything is done correctly?

Clarifying up front whether the document requires a wet signature could save you time and money. Waiting for paperwork to be sent by mail or needing to schedule time to sign documents in person delays you from conducting business, so it’s worthwhile to know the answer beforehand.

After you sign a document with a wet signature, you might not get to keep the original copy. Consider making several copies of the document to store in your files. You’ll also want to note the date and method of delivery (i.e., mail, courier, in-person). You might need that information later if something is disputed.

How Stripe Atlas can help

Stripe Atlas handles everything you need to legally launch your company—incorporation, employer identification number (EIN), equity setup, and tax filings—so you can fundraise, open a bank account, and start accepting payments in as little as two business days, from anywhere in the world.

Join 100,000+ startups incorporated using Atlas, including startups backed by top investors like Y Combinator (YC), a16z, and General Catalyst.

Get started in minutes with Atlas

The application takes under 10 minutes. You’ll choose your company structure, confirm your name is available, add up to four cofounders, set your equity split, and e-sign. Then Atlas takes it from there, including notifying cofounders to sign their documents electronically.

Banking and payments before your EIN arrives

Atlas files your EIN application automatically after incorporation. You don’t have to wait—Atlas enables pre-EIN payments and banking so you can start accepting payments and making transactions right away. US founders with a Social Security number (SSN) are typically eligible for expedited IRS processing.

Automatic 83(b) tax election filing

Atlas files your 83(b) election for you—US and non-US founders alike—with US Postal Service (USPS) certified mail and tracking to reduce personal income taxes. You’ll get a signed 83(b) election and proof of filing directly in your Stripe Dashboard, with certified mail confirmation.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company, drafted by Cooley, one of the world’s leading venture capital law firms, and stores them directly in your Stripe Dashboard. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

$2,500 in Stripe credits, plus $50K+ in partner discounts

Atlas startups get $2,500 in Stripe product credits for their first year, plus $50,000+ in partner discounts on essential tools like AWS, Google, Xero, Perplexity, and more. Delaware registered agent service is also included free for your first year.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.

FAQs about wet signatures