Corporate and LLC Resolutions
A corporate resolution provides the rules for how the board can act under various circumstances.
An LLC resolution is a written record of important decisions made by members that describes an action taken by the company and confirms that members were informed about it and agreed to it.
Importance and Contents of LLC Resolutions
- Document a decision regarding the business’s organization
- Establish authority to open a bank account
- Prove authority to sign a loan
An LLC resolution should include:
- Date, time and place of meeting
- Members present
- The decision or action being taken
- Signatures of members
Benefits of Resolutions for LLCs
- Reduce confusion by documenting expectations
- Provide legal guidelines
- Prove decisions in court
- Inform members of rights and consequences
Signing a Resolution for an LLC
Who signs a resolution for an LLC?
Components of a Resolution
- The LLC name
- Date the resolution was signed
- Title relating to the resolution subject
- Detail of business matters discussed
Availing a Bank Loan with Mortgage of Fixed Assets
Whenever a company gets a bank loan, the Board of Directors executes a Board Resolution to avail the loan and mortgage company property if needed per the agreement.
Importance of Resolutions for Single-Member LLCs
Resolutions prevent disputes over authority and are useful for single-member LLCs to document decisions affecting the business.