Complete Guide to LLCs

Running an LLC means making decisions—sometimes big ones that affect your company's future. When you open that business bank account, buy property, or change who can sign checks, you'll need more than a handshake or email thread to make it official. That's where LLC resolutions come in.

hink of a resolution as your business decision in writing. It's the document that proves you followed your own rules, got the right approvals, and gave someone legitimate authority to act. Banks won't let you open accounts without one. Title companies hold up closings until you produce one. And if you ever end up in court, these papers might be the only thing standing between your personal assets and a judgment.

What Is an LLC Resolution?

Picture meeting minutes that actually matter. That's essentially what you're creating when you draft an LLC resolution—a permanent record that your members or managers voted on something specific and authorized someone to make it happen.

The document itself captures the basics: what you decided, when the vote happened, who approved it, and who's allowed to execute the decision. You're not establishing broad company policies here. Your operating agreement already handles that. Instead, you're applying those existing rules to one particular situation that needs formal approval.

Here's a concrete example of how this plays out. Let's say your operating agreement states that equipment purchases exceeding $40,000 need member approval. When you want to buy a $55,000 deli...