LLC Member Resolution Template
An LLC member resolution is the written record of a member vote izing a specific business action. Formal resolutions aren’t necessary for small, everyday decisions. However, they’re useful for granting ity to members to transact significant business actions, such as taking out a loan on behalf of the LLC. We offer LLC member resolutions that you can use for free.
Why do I need LLC resolutions?
Unlike corporations, LLCs aren’t required by state laws to make resolutions—however, there are situations in which formal resolutions come in handy.
First, other businesses or agencies sometimes require resolutions. For instance, say you want to open a bank account, lease a vehicle on behalf of your LLC, or enter into a contract with another business. The bank, dealership, lender or other business may require you to prove you have the ity to do so with a resolution that specifically gives you that power.
Another reason to make a resolution is to record a major purchase or change in the business. For instance, if you plan to buy a building, formally recording the decisive vote is a good idea. If there’s fallout later on (say, members claim that the LLC paid too much for the property or didn’t properly consult members), the LLC would have a written description of what was voted on and when, signed by a sufficient number of members indicating approval of the decision.
What should LLC member resolutions include?
Member resolutions don’t have to be complicated. The most important part is a clear, detailed description of the resolution itself. Our form takes care of the rest, providing places for the name of the LLC, member names and signatures, dates signed, and a statement that the acts described have been approved, ratified and adopted.