Understanding Banking Resolutions for LLCs
A banking resolution defines who can access a limited liability company’s (LLC’s) bank account. The document authorizes members to open and use a bank account on behalf of the LLC. To open a business bank account for an LLC, banks typically require a formal resolution. The resolution should name the authorized signers for the account and which types of transactions they can conduct. The resolution also provides documentation that members formally approved opening the account. An LLC resolution is not legally required but can help facilitate the bank account opening process.
Writing a Bank Resolution
Key Components of a Bank Resolution
- LLC name and address
- Director’s names
- Director signatures
- Date
- Bank name
- Bank account number
- ATM or visa card number
- Letterhead
Steps for Account Closure
- Write all the assets of the company you have which you will return.
- Withdraw all the money from your bank account before closing it.
- If money remains, indicate willingness to forfeit the remaining balance.
- Use proper paper and formatting for closure letters.
- State the reason for account closure.
- Sign off with a certifying signature and date.
Drafting an LLC Resolution
When to Consider an LLC Resolution
- Establishing authority to open a bank account for the LLC.
- Proving authority to sign a loan on the LLC’s behalf.
Content Outline of an LLC Resolution
- Date, time, and place of the meeting (if applicable).
- Owners or members present.
- Decisions made by the members.
- Implementation plans for the decision.
Activating Internet Banking Transaction Rights
To activate the internet banking transaction rights facility, enclose the necessary documents along with the application:
- Internet banking application form
- Customer request form
- KYC documents/any other relevant document
If you have forgotten the net banking password but remember the username, request the bank to reset the IPIN and send it to the registered mailing address.