Parts of a Business Letter | Components & Examples – Video & Lesson Transcript | Study.com

Understanding how to write a letter is an essential part of communication.

Parts of a Business Letter

The business letter is a formal letter that follows specific formatting requirements. Most often, a business letter is written in block format. Block format means that all lines of the letter begin on the left side with a 1-inch margin. The letter is single-spaced within a paragraph and double-spaced between paragraphs. The font generally used is size 12, Times New Roman. A business letter should convey professionalism; one may write a business letter as part of the sales process, building relationships, recapping conversations, or inviting a call to action such as signing a contract, completing a purchase, or just a simple thank you. A business letter may be sent on letterhead or, most often, via email. Once the formatting is correct, the writer should understand the seven parts of a business letter.

What are the Parts of a Business Letter?

The seven components of a business letter are:

• Heading
• Recipient’s Address
• Salutation
• Body
• Closing
• Signature
• Enclosures

The Heading of a Business Letter

The heading is made up of the business address. If using letterhead, the business address is included on the letterhead. If that is the case, then the letter starts with a date. Example:

ACME Company

123 Main Street

Los Angeles, CA

12345

Recipient’s Address

If the address is not included on the letterhead, then the letter starts with the company name and address on the left margin of the document. If not using letterhead, the company name, street address, city, state, and zip code should be included. Skip a line using the enter key on the keyboard and enter the date in a formal format: month, date, and year. Example:

ACME Company

123 Main Street

Los Angeles, CA

12345

January 1, 2000

Ms. Karen Smith

123 South Street

New York, NY

54321

Salutation

Skip one line after the date and on the left margin, place the recipient’s address. It is very important to include the title and name of the individual that the letter is addressed to. Place a colon after the addressee. Take the time to determine the correct title of the person to whom the letter is being addressed. This assures that the letter gets to the correct destination. If addressing a person identifying as a woman with no understanding of the preferred title, use Ms. Example:

ACME Company

123 Main Street

Los Angeles, CA

12345

January 1, 2000

Ms. Karen Smith

123 South Street

New York, NY

54321

Dear Ms. Smith:

Body of a Business Letter

The body of a business letter is where the writer states the point of the letter. The body of the letter is in block or modified block format which is flush left, single-spaced within paragraphs, and double-spaced between paragraphs. This is the body of the letter. The main point of the business letter should be identified in the first paragraph. The following paragraphs should back up the points in the first paragraph. The closing paragraph should reiterate the first paragraph and provide a call to action. Example:

Dear Ms. Smith:

It was a pleasure to speak with you yesterday. We would like to extend an offer to you to become an agent with our company. In hopes that you will consider joining our team, we included a contract. Please sign and return the contract within seven days.

Partnering with our company offers many wonderful benefits. We provide discounts for all partners. Our team of agents meets monthly to network and attend professional development sessions. Each new agent is paired with a mentor for the first year.

Again, we are excited to extend an offer to you. We believe you will be a wonderful addition to our team. We hope to receive the signed contract in seven days.

Complimentary Closing

As with the other parts of a business letter, the closing is flush left and placed one space after the last paragraph of the body. The first word of the closing is capitalized. Use a comma at the end of the closing and then leave four spaces. Type the sender’s name after four spaces. The sender’s name should provide the sender’s preferred title as well as a middle initial. The writer should use closings appropriate for business. Examples:

Appropriate Complimentary Closings
Inappropriate Complimentary Closings

Sincerely
Love

Regards
See ya’

Respectfully
Talk soon

Cordially
Take care

Best
XOXO

Signature

The signature is hand-written in the four spaces between the salutation and the sender’s formal name. If the letter is to be sent electronically, do not leave blank lines. The signature can be typed one line after the complimentary closing. Example:

Sincerely,

Dr. Ken Jones

Enclosures

Three lines below the signature line, the writer can include enclosures. It is suggested to either include the number of enclosures or list each enclosure by name. Example:

Sincerely,

Dr. Ken Jones

Enclosures (2)

OR

Encl: brochure, contract

Example of a Business Letter with Complete Parts

Example of a business letter with enclosures

Lesson Summary

Letter writing is an essential part of communicating. The business letter is an important representation of the company’s professionalism. There are seven components of a business letter:

1. Heading
2. Recipient’s Address,
3. Salutation
4. Body
5. Closing
6. Signature
7. Enclosures

When writing a business letter, Times New Roman, size 12 is the default font unless otherwise specified by the company or industry. A typical business letter is formatted in block style. Block style means that all lines start on the left side of the page with a 1-inch margin.

The heading of the letter will include the business address if not using letterhead. If using letterhead, begin the letter with the date. Next, double space and type the name of the recipient and the address. It is important to identify the recipient by the proper name and title. Double-space and type the salutation followed by a colon. Next comes the body of the letter. Paragraphs within the letter are single-spaced and double-spaced between paragraphs. The first paragraph of the letter should identify the reason for the letter, the last paragraph should state a call to action and the paragraphs in-between should provide all additional pertinent information. Use an appropriate closing for the letter and leave four spaces then type the sender’s name. If the letter will be sent electronically, the sender may single space between the closing and signature. Finally, if there are enclosures, the sender will double space and follow the enclosure rule.

Business letters are used for many purposes. One may write a business letter as part of a sales process, for networking or building relationships, recapping conversations, or inviting a call to action such as signing a contract, completing a purchase, or just a simple thank you.