Business Letter Writing: Format, Examples & Best Practices

“Dear Sir/Madam…”  *Delete*

“To Whom It May Concern…” *Delete*

If you’re staring at a blank document right now, trying to figure out how to start a business letter – STOP.

Since you’ll never get a second chance to make the first impression, we’ll guide you on how to write a business letter with impact and confidence.

This comprehensive guide will show you:

• How to format business letter professionally
• Step-by-step guidance for every section
• Real-world examples from successful communications
• Professional templates
• How to adapt them to your needs

Whether you’re writing your first business letter, or looking to refresh your skills, you’ll walk away knowing exactly how to write a business letter that commands attention and results. 

Let’s go!

What Is a Business Letter?

A business letter is a formal written document that is used for professional communication between organizations, or between a company and its clients, employees, or other stakeholders. 

It’s a professional handshake in a written form. Knowing how to write a business letter is very important because it carries weight – both legally & professionally.

When and Why You Should Write a Business Letter

Some business moments demand more than a quick Slack channel.

Think about it…

Would you settle a major contract dispute via text? Or submit a million-dollar proposal through WhatsApp?

Never, right?

That’s the reason why most important documents in the companies come as properly formatted business letters. 

We need a formal business letter when:

# 1 – Making Power Moves

• Applying for a dream job
• Requesting funding for a groundbreaking startup
• Proposing major partnerships

# 2 – Managing Professional Relationships

• Placing large orders with suppliers (when documentation is required)
• Negotiating contracts 
• Maintaining vendor relationships

# 3 – Handling Delicate Situations

• Addressing customer complaints 
• Resolving contract disputes 
• Making formal complaints 

# 4 – Building Goodwill

• Expressing gratitude to major clients
• Congratulating business partners on achievements
• Writing letters of recommendation

These are the moments that demand more than a formal email.

Differences Between a Business Letter and an Email

The times when we used to send business letters through the post office are changing fast. 

These days, pretty much everything is digital (and so are the in-mail business letters)

Australia Post saw their letter delivery drop by 12.9% in 2023-24.

Even though both business letters and emails travel through the Internet, they’re still quite different from each other.

How to Format a Business Letter

If you’re unsure how to start a business letter or how to end a business letter for maximum impact, choosing the right format is key. 

• Standard Business Letter Structure

Every professional business letter has six core building blocks that you absolutely need. 

1. Sender’s Information
2. Date 
3. Recipient’s Information 
4. Salutation 
5. Body 
6. Closing 

Want to make your letter even more professional? Consider these 5 optional elements:

• Subject line (great for quick reference)
• Reference line (useful for tracking conversations or documents)
• Enclosure notation (when you’re including other documents)
• CC notation (if you’re copying others)
• P.S. (for that important afterthought – though use sparingly in business letters)

Source = Templatelab.com

• Correct Business Letter Spacing, Margins, and Font

Before reading a single word, what does the receiver see in the business letter? 

A cluttered mess, OR a clean, professional document? The first impression is the last.

Make your first impressions count by professionally formatting a business letter.

• Alignment: The entire letter should be inclined towards the left side. 

• Spacing: The paragraphs must be single-spaced. Add a line break between the main sections (date, address, salutation).

• Font:  Use classic, easy-to-read fonts such as Times New Roman, Arial, Courier, or Geneva at 10-12 points. 

• Margins: Use a one-inch margin on all sides. 

• Formal vs. Informal Business Letter Formatting
  

Depending on your purpose, there are two types of business letter formats. 

# 1 – Formal Letters: Use block format, with all text left-aligned with no paragraph indentations. Use it when you’re:

• Applying for a job
• Writing to government officials
• Making a complaint
• Reaching out to senior executives

# 2 – Informal Letters: Modified block or semi-block formats can be used, which may have indented paragraphs or varied alignments for the date and closing. Use it for: 

• Writing to long-term clients
• Company memos
• Meeting follow-up
• Regular business updates

Source = Birdeye.com

Business Letter Templates and When to Use Them

Just like a GPS, templates are incredibly helpful, but you still need to know how to drive. 

Remember to not fall for the “copy-paste and pray” approach. 

A template can be your starting point, but you can’t follow it blindly. 

It is because saying “Dear Sir/Madam” in 2025 is like “I didn’t bother to find your name”. Templates only work best when you:

• Are new to business letter writing
• Need structure for a common situation (complaints, inquiries, proposals)
• Are writing in a non-native language
• Are dealing with a formal situation where traditional wording matters

You can select any from these 60+ Business Letter Templates but do remember that they have:

1. Outdated language (“To Whom It May Concern” – unless you’re sure)
2. Generic phrases that could apply to any business
3. Overly formal tone in templates meant for modern businesses
4. Region-specific terms that might not work in your country

Now that you understand when and why to write a business letter, let’s dive into the actual writing process.

How to Start a Business Letter

Before you sit down and write, let’s get the fundamentals in place. A professional business letter starts with four basics:

# 1 – Return Address

Your address must be clear and complete.

• Use company letterhead if available
• Format: Street, City, State, ZIP code
• Add your email and phone number for easy contact

Even if you’re using the company’s letterhead, add your direct contact information. Make it easy for people to reach YOU, not just your company.

# 2 – The Date

It’s simple, but people mess this up anyway. Follow this guideline:

• Write it out in full: “February 9, 2025”
• Don’t abbreviate:  “02/09/25” or “Feb. 9, 2025”

Different countries format dates differently. For international business letters, write “9 February 2025” to avoid confusion.

# 3 – Inside Address

This is where you show you’ve done your homework. Add:

• Recipient’s full name and accurate title
• Company name and full address
• Double-check spellings (especially names)

Call the company to double-check the recipient’s title and preferred name if you’re unsure. Attention to detail makes a professional business letter shine.

# 4 – Salutation

Use the Recipient’s first name like this,

• “Dear Mr. Johnson:” (note the colon, not comma)
• “Dear Dr. Martinez:”
• “Dear Ms. Thompson:”

Can’t find the name? Use “Dear Hiring Manager:” or “Dear [Department] Director:” – anything but “To Whom It May Concern.”

Example Format

John Smith Marketing Manager Tech Solutions Inc. 123 Business Lane New York, NY 10001  February 9, 2025

How to Write a Business Letter 

As we’ve discussed the basics, let’s head onto the business letter writing process.

Step 1: Write a Clear and Professional Heading

Heading is the letter’s handshake, so make it tight and professional.

• Clean, standard formatting
• Consistent spacing
• Professional font (Arial or Times New Roman, 11-12pt)
• Everything aligned properly

Step 2: Start with a Strong and Direct Introduction

Your first paragraph is make-or-break territory. 

• State your purpose immediately
• Reference to any previous contact
• Keep it under 3 sentences

To hit right on the goal, you can use our AI Chat with the following prompt:

Prompt for Legal Letters (Introduction):

“Provide a clear and professional introduction to a legal letter regarding [brief description of the situation.”

AI will save you time, and help you brainstorm the points. 

Step 3: Write the Main Body with Key Details

This is where you deliver the goods. In this section, you use:

• One main idea per paragraph
• Supportive claims with specific numbers
• Short paragraphs (3-4 sentences max)
• Clear examples

When you get into the nitty-gritty of your letter, feed the AI Chat the following details:

Prompt for Legal Letters (Main Body):

“Write a legal letter addressing [issue]. Divide it into clear paragraphs and give legal references where needed.”

Use bullet points sparingly to highlight key information, but don’t overdo it.

Step 4: Add a Professional Closing Statement

If you’re unsure how to phrase your closing, give our AI Chat the following:

Prompt for Legal Letters (Closing Statement):

“Please help me craft a professional closing statement for a legal letter requesting [specific action]. Include a call to action and contact information.”

Your closing should:

• Clearly state what happens next
• Thank them for their time
• Include a call to action

How to End a Business Letter

After your final paragraph, leave two lines of space before your complimentary close. 

Use only the first word capitalized and end with a comma. 

Common closings include “Sincerely,” “Best regards,” or “Respectfully.”

For your handwritten signature, leave four lines of space and sign in blue or black ink. 

Below your signature, type your full name, title, and any relevant contact information if necessary.

If applicable, include additional notations, such as “Encl:” for enclosures or “cc:” for copies, and place them on separate lines below your typed name.

Business Letter Examples

Purdue University’s Online Writing Lab provides a sample business letter. It also outlines the recommended margins and spacing for professional correspondence.

Want to see more business letter examples for your specific needs?

• Job Application Letter →
• Complaint Resolution Letter →
• Contract Termination Letter →

Common Mistakes to Avoid in a Business Letter

Writing a business letter can feel like a high-stakes task—after all, it’s your chance to make a strong impression. 

But there are a few common pitfalls you definitely want to steer clear of. 

# 1 – Unprofessional Formatting

First impressions matter, and that’s why appearance can make or break a deal. 

Common business letter formatting mistakes include:

• Inconsistent spacing between paragraphs
• Misaligned margins and text
• Multiple font styles or sizes within the same letter
• Improper business letter structure (missing date, recipient address, or signature block)

# 2 – Use of Informal Language

Business letters demand a level of formality that distinguishes them from casual communication. Avoid these common language mistakes:

• Using Too Many Idioms or Phrases: 

Instead of writing: “Let’s touch base about thinking outside the box” 

Write: “I would like to discuss innovative approaches to this project”

• Passive Voice: Use active voice to make your statements more direct and impactful.

• Using “I” Too Much: Repeating “I” can make your letter seem self-centered. Instead of writing: “I think I can help you with your project because I have experience” 

Write: “This project aligns well with our team’s extensive experience”

# 3 – Ambiguity and Vagueness

Clarity is paramount in business communication. Avoid:

• Unclear requests or deadlines 

Example of vague writing: “Please get back to me soon” 

Better alternative: “Please provide your feedback by Friday, February 16”

• Imprecise language 

Example of vague writing: “We’ll need quite a few resources” 

Better alternative: “This project requires three additional staff members and a $50,000 budget”

# 4 – Not Humanizing the Content

Sure, digital letters are convenient, and AI chats can be a real-time-saver.

But if you don’t humanize your content, it can come across as robotic or impersonal. 

Use our AI Humanizer to ensure it’s written by a real person—not a machine. 

How to Make Your Letter More Persuasive

Persuasion isn’t clever wordplay or manipulation. 

A well-written persuasive letter can help transform a warm business relationship, convert engaged partners, and clear, actionable opportunities.

And to do that effectively, use these 3 persuasion strategies in your business letters to make your letters better than without them.

# 1 – Create a Compelling Hook

Your opening paragraph must give the recipient a reason to read further. For strong hooks, you can include any of these:

1. Reference a shared challenge
2. Present a striking statement
3. Highlight immediate value

# 2 – Provide Compelling Evidence

Transform claims into arguments through:

1. Data & Statistics

• Use specific numbers: “Our system reduced error rates from 8.5% to 0.3%”
• Include time frames: “Within 6 months, client satisfaction increased by 45%”
• Compare before/after scenarios: “Production efficiency improved from 1,000 to 1,500 units per day”

2. Case Studies

• Reference relevant success stories: “A similar implementation at ABC Corp resulted in…”
• Include specific outcomes: “Their team achieved 98% automation within 90 days”
• Highlight comparable situations: “Another manufacturer in your region experienced…”

3. Expert Validation

• Industry recognition: “Awarded ‘Most Innovative Solution’ by Industry Weekly”
• Professional certifications: “ISO 9001 certified processes”
• Partner endorsements: “Microsoft Gold Partner status since 2020”

# 3 – Anticipate and Address Objections

Analyze any objection that your recipient might have regarding your letter, and address them right away in here.

(Use AI Chat to analyze the objections)

They might have concerns regarding…

• Cost Concerns: “While the initial investment is $X, the ROI typically occurs within 6 months through…”
• Implementation Time: “Our dedicated team ensures minimal disruption with our proven 3-week transition plan”
• Training Requirements: “The included comprehensive training program requires only 4 hours per employee”

Conclusion

Business letter writing Is still relevant in 2025, but not in the way your grandfather knew it. 

While most communication has gone digital, you might not need it every day, but when you do, it’s irreplaceable.

A well-crafted business letter can still open doors that a quick email can’t. 

Whether you’re landing that dream job, securing a million-dollar deal, or smoothing over a client crisis, a properly formatted and well-written business letter will save you.

• Keep it professional, but don’t sound like a robot from the 1950s
• Use AI tools to brainstorm, but add your human touch
• Remember: your letter might be digital, but its impact should be personal

Make sure your letter doesn’t end up like those unread terms and conditions – nobody wants that kind of relationship!