14 Examples of Formal Business Letter Format

A Formal Business Letter is a piece of correspondence that is sent from one company to another. It is also a letter written for commercial purposes, either to close a business deal, for a complaint from one organization or for other company matters.

It is important to note that there are two types of business letters; the first is the formal letter, while the other is the informal letter.

The formal letter follows a structured set of rules and guidelines to ensure the correspondence’s formal tone. Such a letter entails legal and formal correspondence related to sales requests, information requests, and other corporate affairs.

This effectively communicates an important aspect of a company’s affairs to another company seeking to partner with them. Therefore, this type of letter is usually of great importance to the relationship-building between companies.

On the other hand, the informal one takes a lighter approach; it does not follow strict rules like the formal letter. They are usually the letters sent within an organization from an employee to other employees or from an employee to the management and vice versa.

Letter Examples

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Business Deal Letter

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Business invitation Letter

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Order letter

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Claim Letter

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Dispute Settlement Letter

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Business Agreement Letter

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Letter to Request Information

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Sales Report

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Formal Letter Styles

There are four main styles of writing a formal business letter:

Full-block style

When using this type of letter style, you either want to make a complaint or inform the recipient about a recent event. This style is usually used when someone wants to communicate with a company and vice versa. The process of using this style is relatively simple; you need to adjust all the text to align to the left margin while you skip a line between each section that you write.

Furthermore, the paragraphs are not indented and are separated by double or triple space. When using this style, writing the addresses requires adding punctuation. The salutation is followed by a comma, but writers in the United States prefer a colon. Finally, the comma comes in after the closing.

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Semi-block style

However, this resembles the full block style and is like the modified block style, but when using this style, you will have to indent the paragraphs. Furthermore, the paragraphs have to be aligned to the left margin.

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Modified block style

The style of writing formal letters you see in thank you letters and cover letters is the modified block one. This style is also common in resignation letters and is implemented in email and print correspondences. The text is also aligned to the left margin like the previous two styles discussed; however, there is a distinct variation.

For the modified block style, the author’s address, date, and closing are all on the right side, and there is no indentation of the paragraphs. However, when indented, the author’s address, date, and closing are all in the same position.

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Modified semi-block style

The modified semi-block style has the same elements as the one before it, except that you indent the paragraphs in this writing style. The author’s address, date, and closing are away from the left margin and are all in the same position on the right side of the page.

How to Format a Business Letter

As we mentioned, this letter has guidelines to follow to achieve its purpose. Therefore, the following elements are required to achieve a business letter format:

Letterhead

Anytime a company wants to send internal correspondence like memos, promotion letters, and others, the letter will carry that company’s letterhead. This part of the paper contains the company logo, contact information, and the company’s name. Most reputable companies have this on their letters. More importantly, a letterhead shows the company’s reputation, especially when communicating with another company.

Your contact information

If you write a formal letter, your contact information must be presented as an individual or a company. Your name, address, city and state zip codes, phone number, and email address must be in the letter. This will help the recipient respond to the information that has been detailed in the letter.

Date

In writing the date, you must consider the recipient’s nationality.

Regardless of the audience you are writing to; it would be best to always spell the month in full, as no abbreviations are permitted.

Recipient’s details

The recipient details are the next phase. It is best to address the person personally, except when you don’t know the person’s name. This is more of a psychological orientation.

However, if you don’t know the person’s name, then put the person’s title in the company, which is the next part of the recipient’s details. The company name would follow, and then the city and zip code. If you have a phone number, then you can add that.

Salutation

This part is what many people take for granted; the salutation is not a plain “Dear Sir/Madam” that people add. Instead, the salutation indicates respect, which can dictate whether or not your letter will be well received. There are different factors to consider when writing the salutation.

First off, you can address the recipient based on how well you know the person. So, you can say, “Dear Jamie.“. However, if it is a matter of official status and you still know the person because it is a formal setting, you can add the title and the person’s last name, like “Dear Mr. Johnson.”

Another factor you need to consider is whether you do not know the person. In this case, “Dear Sir” or “Dear Madam” will suffice. However, if you’re not sure of the person’s gender but the bane, you can put the first and last name, like “Dear Jamie Johnson“. Finally, if you are unsure to whom this letter should be addressed, there may be confusing titles, but you don’t want to pick the wrong one. Therefore, you can go for “To Whom It May Concern“.

Body

Many people find it hard to start the body of the letter, which contains the entirety of why you are writing the letter. However, if you are unsure how to start, you can start by stating why you are writing a letter,

“I am writing this letter to inform you…”

The body is the main idea of the letter, and it should normally be 3-4 paragraphs to properly explain the essence of the letter.

As we have stated above, the first paragraph should be an introduction to why you are writing this letter.

The second paragraph will be the arguments related to why you are writing the letter. So, for example, if you are writing a letter to solicit funds from a company, the second paragraph should start with what you intend to use the funds for—explaining what the company understands to gain from giving you the funds.

The third paragraph will be for another point if you have any other. But if you don’t, you can stop at the second paragraph and move to the last one, which you will conclude by summarizing your arguments and thanking the recipient of the letter.

Closing

This is where you will tell the recipient the best way to reach you regarding everything you have explained in your letter. You can add your email address or phone number for them to contact you.

Complimentary closing

This is the closing that reflects how well you know the recipient; for the formal letters, you can use either

But for an informal one, you can use

Signature

After the complimentary closing, you should leave at least four lines so that the space can accommodate your signature. The format for signing the letter is your signature, full name, and title.

Enclosures

This may not be included every time, but if you are looking for a partnership or trying to sell an idea to another company, it is best to attach some brochures, flyers, and other important documents to the recipient. Hence, enclosures refer to the additional materials that the recipient can look at in understanding your letter.

For emails, you can simply say,

Letter Template

Sample Business Letter

Professional Tips to Ponder

We already discussed some guidelines for the letter. Now, we would like to share some tips that have helped people get the desired results from their correspondence:

Be concise

Many companies receive emails and letters daily; therefore, it is important to be simple and go straight to the point without ambiguity. Plus, the employer or the recipient does not have to spend all day trying to decode everything in your letter. So, go straight to the point.

Keep the tone right

When using a template, you must ensure that your tone remains official; otherwise, it defeats the purpose. Hence, understand why you are writing and set a time that supports your argument or points.

Plus, you need to sound like yourself; do not be monotonous, but let it feel like a human being who wrote the letter. Let the letter flow naturally, like a conversation but also be professional at the same time.

Use formal language

Do not use abbreviations or slang, even if you know the person personally. A formal letter requires the use of formal language that anyone can read. It is also best to use the active voice when writing the letter

Proofread

Be sure to check through your writing to ensure that it is free from errors. Proofreading your work ensures some professionalism. Furthermore, ensure that you spell the recipient’s name correctly to avoid throwing your letter away.

Choose a professional font size and style

It is best to use a font size and style that are generally acceptable. The use of Times New Roman and Arial is some of the most popular. It will aid their readability when they can easily see your font.

Ensure that readability is your drive to pick a font, not its fanciful nature. Therefore, there are some fonts that you can consider readable, such as Calibri, Corbel, Gill Sans, Helvetica, Open Sans, and Roboto. These are some of the most acceptable fonts.

Include sections for all necessary information

The layout of your letter has to include sections that carry all the necessary information. You need to be able to properly communicate from the first line of your letter to the last. Therefore, the proper layout with the appropriate sections will ensure the recipient is engaged till the end.

Pay attention to spacing and margins

Business letters need to be properly spaced for easy readability and professionalism. Therefore, in the contact information and salutation, you need to properly space those elements to ensure that the recipient can see them.

In the first paragraph, let there be adequate space between the contact information and recipient details. Finally, most give a one-inch margin to ensure recipients do not have problems seeing every bit of detail.

Choose a high-quality paper

This is when you need to send a physical letter to a company for an individual. You need to use quality paper that cannot easily get torn and place the letter carefully in an envelope. This shows that you are a professional and value the recipient.

Final Thoughts

Formal business letters are essential in discussing important matters outside and within an organization. Without understanding how to structure the letter, you may not get good value from an organization. Therefore, this article seeks to put you in a better position to present your ideas to any company in whatever manner you need to discuss them. The templates provided are to ensure that your letter stands out.

About This Article

Authored by:

Brian Beers

Business Writing | BA in Journalism, Master of Business Administration (MBA)

Brian Beers is an expert in business writing with over 15 years of experience in financial news. He has received numerous awards, including an Emmy nomination for his work as the lead producer of the CNBC feature "Boom, Bust and Blame: The Inside Story of America's Economic Crisis." Brian has also rung the opening/closing bell of the stock market three times, twice for the NYSE and once for the NASDAQ. He holds a BA in Journalism and an MBA. His exceptional storytelling skills and insightful analysis make him a sought-after professional in the business writing industry, helping individuals and organizations effectively communicate their ideas and strategies in the business world.