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1. Career development
2. The Structure of a Business Letter and How To Write One

By Indeed Editorial Team

Table of Contents

• What is a business letter?
• Common types of business letters
• Components of a business letter
• How to write a business letter
• 1. Determine the recipient
• 2. Establish your purpose
• 3. Format your letter
• 4. Introduce yourself
• 5. Include details
• 6. Close effectively
• 7. Use a complimentary closing
• 8. Proofread and edit
• 9. Enclose additional documents
• Examples of business letters
• Sales letter example
• Cover letter example
• Letter of resignation example

Updated November 29, 2021 | Published November 23, 2020

Updated November 29, 2021

Published November 23, 2020

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

While you may not regularly put letters in the mail in your personal life, companies still frequently use letters as a means of communication in the business world. Many businesspeople write letters to print and put in the mail and to send digitally through email in order to share information and ideas formally. Knowing how to write an effective business letter can help you both in your job search and as a professional employee.

In this article, we explain what a business letter is, list the common types of business letters, describe the components of a business letter, provide the steps for writing a business letter and offer several examples of business letters.

Related: How To Address a Letter To a Business

What is a business letter?

A business letter is a type of formal correspondence often sent from company to company, from company to client or from client to company. These letters generally follow a standard format and are usually written on company letterhead, particularly when sent physically through the mail rather than digitally through email.

Related: The 7 Parts of a Business Letter

Common types of business letters

You can use a business letter format for a variety of professional communication needs. Consider a few of the most common types of business letters you may encounter:

• Sales letters: Companies use sales letters when soliciting business from other organizations, or occasionally, from individual customers.

• Order letters: Businesses send order letters when placing an order for a product or service. These letters include the specifics of the order and sometimes the payment.

• Complaint letters: Complaint letters are usually sent by consumers to businesses when they're unhappy with a service or product.

• Adjustment letters: Companies send adjustment letters in response to customer complaint letters. These letters usually provide a solution to the problem posed in the original complaint letter.

• Inquiry letters: Inquiry letters ask a question. You can use an inquiry letter for a number of different professional purposes.

• Follow-up letters: A follow-up letter is generally the second communication sent after initial contact.

• Letters of recommendation: A letter of recommendation often comes from a prospective employee's previous employer to the business the candidate is applying to work for.

• Acknowledgement letters: Businesses use acknowledgement letters to indicate they received a communication or request, but they have not yet made a decision or taken action.

• Cover letters: Both businesses and job seekers use cover letters to indicate what's included in a package or collection of documents.

• Letters of resignation: Employees send letters of resignation to their employers when they're planning to leave their job.

Related: Business Letter Format and Example

Components of a business letter

Each of these types of business letters, while providing different information to the recipient, usually follows a similar format and includes the same basic components. When writing a business letter of any kind, anticipate including these elements:

• Sender's address: The sender's address is your address or the address of your business.

• Date: Include the date you wrote and sent the letter.

• Recipient's address: This is the address of the person you're sending the letter to.

• Salutation: Use a formal greeting along with the recipient's name.

• Introduction: The introductory paragraph of the letter introduces the purpose of the correspondence to the recipient.

• Body: The body paragraph or paragraphs provide details about the letter's subject or purpose.

• Closing statement: The closing paragraph of the letter summarizes and concludes the message.

• Complimentary close: Use a professional phrase along with your signature.

• Enclosures: If you're including any additional documents, like a sales brochure, a resume or an itemized receipt, specify that under the enclosures heading.

Related: 22 Business Letter Closing Examples

How to write a business letter

Writing an effective business letter is done best when you follow the standard business letter format and use the necessary business letter components. Follow these steps to write a thorough and formal business letter:

1. Determine the recipient

Begin by establishing who you're sending the letter to. For example, if you're applying for a job, find the name of the hiring manager and their business address so you know who you're writing to before you begin.

2. Establish your purpose

Know why you're writing the letter. With a cover letter, your purpose is to introduce yourself to the hiring manager and explain why they should consider you for the position. Create an outline or list of the information you want to include in your letter that supports your purpose.

3. Format your letter

Format your letter to reflect the standard business structure. Include your address, followed by the date, followed by the recipient's address. Then, add a formal salutation. Using the cover letter example, consider a salutation like, "Dear Ms. Johns," to open your letter.

4. Introduce yourself

In the first paragraph of your letter, introduce yourself to the recipient and explain why you're writing. It's normal for the first paragraph of a business letter to vary in length, from one or two sentences to four or five, depending on the subject.

5. Include details

In the body paragraph or paragraphs of your letter, provide the details of your reason for writing. Using the cover letter example, this is where you would provide examples of your successes and accomplishments in past positions.

6. Close effectively

Include a final paragraph that summarizes the main purpose and points of your letter. If you're looking for a response, include a clear call to action so the recipient knows what they should do after they finish reading.

7. Use a complimentary closing

Add your closing and signature. Use a professional phrase like, "Sincerely," or "Best regards," when closing your letter. Include your signature below your sign off.

8. Proofread and edit

Give your letter a proofread before printing and signing it. Ensure you've spelled all the words correctly, and you've followed all grammatical rules. Double-check the recipient's name and address for accuracy. Make any edits or corrections as needed.

9. Enclose additional documents

If you're including additional documents, list them below the enclosures heading. In the case of a cover letter, you usually include your resume and list of references.

Related: 15 Types of Business Letters and When To Use Them

Examples of business letters

Use these examples to help you see the format and structure of a business letter in practice:

Sales letter example

This is an example of a sales letter sent from one company to another company:

Office Offerings
123 Main St.
Boone, OH 12345

December 1, 2020

Josh Treed
Treed, Treed and Roberts Law Offices
876 Water St.
Boone, OH 12345

Dear Mr. Treed,

My name is Pat Jenkins, and I'm a proud representative for Office Offerings. We sell a wide range of wholesale office products directly to businesses in the local community.

I know how much paper, ink and other office supplies a law office like yours goes through, because we proudly provide supplies to several other law offices in the region. We're honored to offer highly competitive prices for the office supplies you need, including:

• Legal pads
• Pens
• Highlighters
• Printer paper
• Envelopes
• and more!

We have a special offer right now for new customers in addition to our already low prices. Take a look at our enclosed spring sales catalog to see what products we can supply you with. Please reach out to me directly at 555-555-5555 if you'd like to get a custom quote for your office supply needs.

Sincerely,
Pat Jenkins

Enclosures: Spring sales catalog

Cover letter example

This is an example of a cover letter, sent from a candidate to an employer:

2849 Archibald Ave.
Johnson, IL 23456

February 20, 2021

Mary Pose
Sequoia Landscaping
753 Willow Lane
Johnson, IL 23456

Dear Ms. Pose,

As an avid gardener and proud member of the National Gardening Association, I think I have the right skills to fill your open garden center merchandiser position.

I have 25 years of experience as a home gardener and got involved with the local chapter of the National Gardening Association five years ago. I'm self taught, but I have extensive knowledge of Illinois' native plants and the majority of the plants that you carry in your center.

I've helped numerous friends over the years develop their gardens, and I love helping people find the perfect plant for their space. While I'm currently retired from my first career as a sales associate, I'm well versed in working with customers and enticing them to make a purchase, which would benefit your business.

I've enclosed my resume and a list of references, both professional from my time as a salesperson, and personal from friends I've helped with their gardens, for you to learn more about my background. I look forward to speaking with you soon.

Sincerely,
Henry Arbor

Enclosures: Resume, list of references

Letter of resignation example

This is an example of a letter of resignation, given to an employer by an employee:

2472 Doll St.
Appleton, OR 56789

March 7, 2021

Ryan Olsen
Appleton High School
951 Broadway Ave.
Appleton, OR 56789

Dear Mr. Olsen,

As you know, this is my 27th year at Appleton High School. This will be my final semester working for the school, as I am ready for retirement at the conclusion of the school year.

I have loved my time teaching English here at Appleton High. However, after my lengthy tenure, I'm ready for the slower pace of retirement. Please accept my resignation from my position effective on the last day of school, June 3, 2021.

Please let me know if there's anything I can do to help with the transition in the coming months.

Sincerely,
Kate Johansson

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