While you don’t need to vote for every action in a business, some items are important enough to need a full vote during a meeting, with documentation in the meeting minutes. An example of this might be when taking out a business loan, which often prompts an LLC banking resolution. Using an LLC Resolution template makes it easy to get everything from the meeting in writing and serves as a record of important developments.
We have a free LLC Resolution template for you to use. But before you get started, it’s helpful to understand how an LLC Resolution works.
When do you need an LLC Resolution?
Any significant changes to the LLC might benefit from an LLC Resolution. In addition to financial events, such as opening a new bank account, resolutions are common for changing addresses or offering new lines of business. Operating structure or role changes might require one as well. Most LLC Resolutions include the following sections:
- Date, time, and place of the meeting
- Owners or members present
- The nature of business or resolution to discuss, including members added or removed, loans made, new contracts written, or changes in business scope or method
- Statement of approval, ratification, and adoption of the resolution
- Names of those who voted or approved the resolution (as well as anyone who dissented)
- Signed and dated signature of the secretary
What to do with your LLC Resolution
While an LLC resolution is a record of a significant business event, it doesn’t need to be filed with the state. Store it away with your other important business papers so it can be reviewed later, if needed.
If in doubt, a well-written LLC Resolution can prove what happened in a prior meeting and act as a record of significant events in your business. These can be used for legal proceedings, in some cases, but are most often used to help clarify when things happened or who approved them.
These templates are for illustrative purposes only and should not be construed as either actual or constructive legal advice being given.
Linsey Knerl is a Midwest-based author, public speaker, and member of the ASJA. She has a passion for helping small business owners do more with their resources via the latest tech and finance solutions.