How to Format a US Business Letter By Ali Hale

Whatever you do – whether you’re a student, employed in an office job, or working as a freelancer – I can guarantee that at some point in your life, you’ll need to sit down and write a formal business letter.

It might be to a customer, to an employer with a job that you want, or to apply for university funding. Perhaps it’ll even be to a literary agent or publisher who just might take on your undiscovered novel. Of course, you’ll want the letter to be well-written – but almost as important is knowing how to format it correctly. This article is about US business letter format (for UK readers, don’t worry, I’ll be writing a follow-up one for you.)

The main formats for business letters in the US are called full block format and modified block format.

Full block format means that all the elements of the letter are left-justified so that the start of each line is at the left-hand margin. This is the more formal style, so use it if you’re unsure which to go for.

Modified block format means that some elements of the letter are shifted over to the right. Nowadays, this style is appropriate in most contexts.

Here’s a full block format letter

And a modified block format one:

Let’s break those down into the main elements, in top-to-bottom order:

Your Address

Your address, also known as the “return address”, should come first. (Note that this applies when using standard plain paper. If you have letter headed paper, you should omit this.)

123 Acacia Avenue

Newtown

Anywhere

AN 98765

Your return address should be positioned:

On the left-hand side if you’re using full block format

On the right-hand side (tab across, rather than right-aligning) if you’re using modified block format

Why put your address? Even if the recipient has your details in their address book, you want it to be as hassle-free as possible for them to reply – you’re likely to receive a speedier response.

The Date

Directly beneath your address, put the date on which the letter was written:

May 15, 2008

To avoid any confusion, especially if you are writing to a business abroad, it is best to put the date in word rather than number form, and you should omit the “th”.

The date should be positioned on the left-hand side, for full block format and for modified block format

Why put the date? It’s standard practice to include the date on which the letter was written. Correspondence is often filed in date order. It makes it much easier for the recipient to send a timely reply, and easier for you to chase up an answer if necessary. Eg. “In my letter of May 15…”

Reference Line

I’ve not included this on the diagram as guidance varies on where it should be placed. You may include a reference line, starting with “Re:” This is often used when corresponding with large companies, or when applying for a job. The reference line can either appear beneath the date, OR beneath the recipient’s address.

If you use a reference line, you should usually omit the subject line (see below).

The reference line should be left-aligned for both full and modified block formats. Different types of letters will require different types of subject and reference lines, so choose the one that’s most appropriate to your case.

Why put a reference line? You should use a reference line if the recipient has requested specific information, such as a job number or invoice number, or if you’re replying to a letter. This makes it easier for the recipient to get a speedy response to you.

Recipient’s Name and Address

Beneath this, you should put the name and address of the person you’re writing to, just as it would appear on the envelope. If you’re using a window envelope, this should be aligned on the page to show through the window – but even if it won’t be visible until the letter is opened, it should still be included.

The recipient’s name and address should be positioned on the left-hand side, for both formats.

Why put their address? If you’re writing to someone in an office, it probably won’t be them who opens the post. An administrator is likely to do so – and letters may be separated from their envelopes at this stage. Particularly if there are multiple departments within one building, or if you are starting your letter “Dear Bob”, a name and address ensures your letter reaches the correct recipient.

The Greeting

After their address, you should leave a line’s space then put “Dear Mr Jones”, “Dear Bob” or “Dear Sir/Madam” as appropriate. Follow this with a colon.

The greeting, sometimes called the “salutation”, should always be left-aligned.

Why put a greeting? Business letters are a formal type of writing, and it’s considered polite to start with a greeting. Although you can get away with starting emails “Hi” or “Hello”, letters follow more conservative conventions.

The Subject

Optionally, you may wish to include a subject for your letter. This is becoming more common, perhaps as people have become used to the subject lines of emails. If you do put a subject line, it should be in uppercase, directly below the “Dear name:”

The subject (if you include one) should be left-aligned for full block format, but can be either left aligned or centred for modified block format.

Why put the subject? It’s a good idea to include a subject so that the recipient can see at a glance what the letter refers to. Try to be succinct but include as much information as possible, eg. “Funding application from Joe Bloggs, candidate 222-456”.

The Text of Your Letter

Now, finally, you can write the main body of your letter. Your text should have:

Single-spacing between lines

A blank line (NOT an indent) before each new paragraph

(And, of course, you should conform to all the usual rules of grammar, punctuation and spelling: for example, ensuring that you start each sentence with a capital letter, and finish with a full stop.)

Why leave blank lines? In the business world, it’s standard practise to put a blank line between paragraphs. This helps to break up the text on the page and make it more readable.

The Closing

After the body of text, your letter should end with an appropriate closing phrase and a comma. The safest option is “Yours faithfully” (when you don’t know the name of the person to whom you are writing, ie. when you began “Dear Sir/Madam”) or “Yours sincerely” (when you do know their name). If you are already acquainted with the recipient, it may be appropriate to use a phrase such as “Best regards”, “With warmest regards”, or “Kind regards”.

The closing should be:

Left-aligned for full block format

On the right (tab across so it matches up with your address) for modified block format

Why use these phrases? Although “Yours sincerely” and “Yours faithfully” might sound archaic, they are time-honoured ways to close a formal letter.

Your Name and Signature

Put several blank lines after the “Yours sincerely,” or “Yours faithfully,” then type your name. You can optionally put your job title and company name on the line beneath this.

Joe Bloggs

Marketing Director, BizSolutions

Your name and signature should be:

Left-aligned for full block format

On the right (tab across so it matches up with your address) for modified block format

Why leave a blank space? The blank space is so that, when you’ve printed the letter, you can sign it with your name. This is taken as proof that the letter really is from the person whose name is typed at the bottom. Sometimes, another person may sign the letter on your behalf. If this is the case, they should put the letters “p.p.” before their name, which stands for the Latin per procurationem meaning “by agency”.

Business letter tone

It’s very important that you choose the right voice and tone when writing your business letter. Using the correct format but choosing an improper type of language might affect your desired outcome. Here’s what the guys from thebalancecareers.com wrote about this:

Make the purpose of your letter clear through simple and targeted language, keeping the opening paragraph brief. You can start with, “I am writing in reference to…” and from there, communicate only what you need to say. The subsequent paragraphs should include information that gives your reader a full understanding of your objective(s) but avoid meandering sentences and needlessly long words. Again, keep it concise to sustain their attention.

Enjoy writing your letters, and use the examples above to help you with the formatting if you do get stuck.

Your Step by Step Recap

Formatting a business letter correctly might seem a bit daunting, especially if you’ve never or rarely written this type of letter before – perhaps you’re applying for a job for the first time, for instance, and writing a covering letter.

Here’s a quick recap of what we’ve covered, so you can use it as a handy checklist:

Step #1: Decide Whether You’re Using “Full Block Format” or “Modified Block Format”.

Try not to mix-and-match between these. Remember, full block format (with everything left-justified) is the more formal of the two styles – but these days, modified block format (with some elements shifted over to the right) is fine for most contexts.

Step #2: Include Your Address

Your address should go on the left for full block format and on the right for modified block format. Don’t right-justify the text – tab across.

Step #3: Include the Date

The date should go directly after your address, and should be left-justified whatever format you’re using. Write it like this: “May 15, 2008”.

Step #4: Potentially Include a Reference Line

If you’re corresponding with a large company or if you’ve been asked to include a specific reference number in your letter, type “Re:” then the reference line. If you’re using a reference line, omit the subject line.

Step #5: Include the Recipient’s Name and Address

This should be left-justified, whatever format you use. It’s important to include their full name as well as the address in case the letter becomes separated from the envelope (which it usually will in a large office). If you’re using a window envelope, make sure the recipient’s name and address are positioned to appear within the window.

Step #6: Include the Greeting

The greeting, sometimes called the salutation, should be followed by a colon. (E.g. “Dear Mr Jones:”) It should always be left-justified.

Step #7: Consider Including a Subject Line

The subject line is optional, but it’s become increasingly common practice. Your subject line should show the recipient, at a glance, what your letter is about. It can be left-justified or centered in modified block format.

Step #8: Write the Letter Itself

The text of your letter itself should be left-justified (in all formats) and single-spaced. You should put a blank line between paragraphs, rather than indenting them. Write in an appropriate business-like tone.

Step #9: Add an Appropriate Closing

Close your letter with a phrase like “Yours sincerely” (a safe formal option) or “Best regards” (a good option for someone who you already know). Follow this with a comma.

Step #10: Add Your Name

Leave a blank space for your signature, then type your name at the end of the letter. If appropriate, you can put your job title and company name on the line beneath your name.

US Business Letter Quiz Select the correct answer for each of these questions about business letters. 1. Which business letter format has all elements of the letter left-justified? Modified block format Which format has all elements of the letter left-justified?

2. What should your greeting be followed by? A colon A semi-colon

3. Should you include the recipient’s name and address? Yes No

4. In the body of your letter, how should you mark the end of one paragraph and the start of the next? With an indentation With a blank line

Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily!

Keep learning! Browse the Business Writing category, check our popular posts, or choose a related post below: