Self-Employment Verification Letter (Samples & Examples)

If seeking some privileges like borrowing loans, entering a hire purchase agreement, or enrolling for a mortgage, you will first and foremost have to demonstrate your ability to repay the debt. This requires that you prove to the lender your income and other benefits you receive or are entitled to.

As a self-employed person, you will have to draft a Self-Employment Verification Letter. This is basically an official communique that demonstrates your income and the benefits you receive from your business venture. At the same time, it demonstrates your ability to repay. It is mainly prepared by tax preparers.

This letter serves to demonstrate to a potential lender or financier the following pieces of information:

Identifies your Business

As a start, it identifies your business. This entails furnishing the relevant pieces of information regarding your business. These include the official name of the business, the date of founding or incorporation, the nature of the business, and the state in which it is registered.

Corroborates your Total years in Business

Next, it demonstrates the total length of time you have been in business. As a general rule, there is a positive correlation between the length of stay in business and the ability of the said enterprise to support or guarantee a debt instrument.

Reveals your Income Levels

It goes ahead to reveal the level of income that your business receives in a typical trading year. As is the case with the total years in business, a direct correlation also exists between the income level of the business and its ability to guarantee a debt instrument.

Spell out your Tax Obligations

The letter also spells out your tax obligations in that it demonstrates to a lender how much tax you are naturally bound to remit to the Internal Revenue Services. A shrewd lender will only want to transact business with an entity that obeys the rules of the land.

Free Templates

Free Self-Employment Verification Letter Sample & Example 01

Editable Self-Employment Verification Letter Template 02- Word Document

    What to Include?

    A Typical Self-Employment Verification Letter Ought To Comprise The Following Pieces Of Information:

    • CPA or Tax Preparer’s Letterhead: The letter ought to be printed on the letterhead of the certified public accountant or tax preparer. It is the use of this letter that gives the document the official character it requires to be acceptable across the board.
    • Contact Information: It is important that the letterhead also contain the contact information of the tax preparer for the purpose of expediting future references and support.
    • Name and Address of the Business: Its body has to contain the name and the address of the business that the lender claims to own. Aside from these two, the letter should also showcase the physical address of the business, its sector or nature, and other pertinent details.
    • Name and Address of the Proprietor: The name and the address of the proprietor ought to be displayed vividly. It is this proprietor whose income and self-employment status is being verified. These details include the share of ownership, length in business, and the other partners.
    • Details of the Business Venture: This letter also goes beyond explaining the details of the business venture. With this regard, it explains the sector wherein the business operates and the kinds of merchandises it engages in.
    • Signature, Dates, and Stamp: Lastly, it comprises the signatures, stamps, and the dates when the letter was drafted and officially sent out to the parties of interest.

    Self-Employment Verification Letter Format

    To inspire you to draft one for yourself, we hereby lay bare the format you ought to follow to go about this:

    Your Name

    Your Address

    Your City, State Zip Code

    Your Phone Number

    Your Email






    City, State Zip Code

    Dear Mr. /Ms. Last Name:

    RE: Self-employment Verification Letter

    This is to certify that I ___________ (your name) am the proprietor of _ (name of the business enterprise). This business entity is located in _______ (identify the physical address of the business you purportedly own).

    In a typical year, this business rakes in _____ (state the amount) and pays an average tax of ___________ (state the tax level).

    Enclosed in the envelope are the tax records, a copy of the business registration, audited results of the last trading periods, and the bank statements of the past three financial years.

    Reach me via XXX-XXX-XXXX for any further clarification if need be.


    Your Name

    Self-Employment Verification Letter Sample

    We now leave you with a sample of the self-employment verification letter to draw inspiration from:

    Mr. Harrold McDonald,

    Proprietor – Sonalux Kitchenette,

    8520 Allison Pointe Blvd,

    Suite 223,

    Indianapolis, IN 46250-4299

    June 29, 2020,

    Mr. Philip Felipe,

    Loans Officer – First National Bank,

    4600 Sunset Avenue,

    Indianapolis, Indiana 46208

    Dear Sir,

    RE: Self-employment Verification Letter

    This is to showcase that I, Mr. Harrold McDonald, am the proprietor of Sonalux Kitchenette, a restaurant that deals in fresh foods in downtown Indianapolis, Indiana.

    The business has been continuously operational for the last 8 years now and has served close to 800,000 meals in all that time.

    My annual turnover before tax hovers around $80,000 to $100,000. I have enclosed all the relevant documentation to back those allegations.

    These include the tax returns for the last 3 years, and up-to-date bank statement, and the business registration documents.

    Feel free to reach me via (317) 232-1882 for any urgent matters.


    Mr. Harrold McDonald,

    Proprietor – Sonalux Kitchenette

    Things to Keep in Mind

    While drafting this letter, there are things you inevitably have to bear in mind to be able to do a great job. Here below, we take a look at those factors that contribute to the best job overall:


    You have to be truthful all the while. Avoid inflating figures or over-exaggerating facts as you draft a letter of this kind. Remember, sooner or later, the facts you portray in the letter will have to be verified by a competent and impartial authority. Woe unto you if found to be lying.

    Backup Documentation

    It is also important that you back your allegations with proper documentation. These include bank slips, tax returns forms, and registration certificates, and so on. They will go a long way in vouching for the veracity of the details you have claimed or stated in your form.

    Relevance of Contents

    Different applicants will usually demand unique pieces of information from you. You should hence read and understand their requirements first and foremost before drafting this letter. That way, you will now get to tailor the contents to line up with their expectations.

    Frequently Asked Questions (FAQs)

    Let us now ask and answer some of the questions that are frequently asked concerning the self-employment verification letter below:

    How Do I Get Proof Of Self-Employment?

    Use the necessary documents like the tax and wage statements, ledger documentation, profit and loss statements, and of course, the bank statements. They go a long way in proving your self-employment status.

    What Does An Employment Verification Letter Look Like?

    When in a hard copy format, this letter is imprinted on the company’s official letterhead. That includes the company logo, contact details, address, and other unique identifiers.

    How Do I Know If I Am Self-Employed?

    You can be self-employed in different ways. For instance, you may be running your own business, have an inherited business registered in your name, or appointed as an heir to a business.


    Drafting a good self-employment verification letter will no doubt up your chances of getting your way. You should, therefore, treat it more seriously than it probably sounds. Then, back all your claims using the relevant documents we have identified above. Best of luck in your journey ahead!

    About This Article

    Zhaniece Hill
    Authored by:
    Human Resources Specialist | Masters of Business, MBA, BAS Operations Management and Supervision
    Zhaniece Hill, an accomplished author, and writer, possesses an extensive 9-year journey as a seasoned Human Resources professional. With a Master's degree in Business Administration, Hill's profound insights into human capital management have been shaped by a diverse background spanning public and private sectors. Expertise in talent acquisition, onboarding, employee engagement, and benefits define Hill's remarkable HR acumen. With an unyielding focus on results, Hill's legacy is characterized by innovative HR solutions that elevate employee satisfaction, retention, and overall business performance. Continuously seeking fresh challenges, Zhaniece Hill utilizes her expertise to create a lasting impact in the realm of HR.

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