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An LLC member resolution is the written record of a member vote authorizing a specific business action. Formal resolutions aren't necessary for small, everyday decisions. However, they're useful for granting authority to members to transact significant business actions, such as taking out a loan on behalf of the LLC.

An LLC does not have to make resolutions, but there are times it could be useful: An LLC member makes a decision regarding the business's organization. A member must establish their authority to open a bank account for the LLC. Members must prove their authority to sign a loan on the LLC's behalf.

Key Takeaways. A corporate resolution is a written document created by the board of directors of a company detailing a binding corporate action. A corporate resolution is a legal document that provides the rules and framework for how the board can act under various circumstances.

Initial Resolutions ? Member-Managed LLC Put simply, the initial resolution shows how your LLC acts in between its formation and the adoption of its internal governing documents (e.g. its operating agreement).

An LLC has management flexibility that a corporation does not have. The owners can choose to adopt corporate formalities, such as using resolutions to memorialize owner decisions, but such adoptions are optional rather than mandated by government regulations.

Creating an LLC Corporate Resolution An LLC corporate resolution must consist of decisions set in writing, including the percentage of members required to vote for a resolution to pass. Once committed to writing, all managing members or the chairperson of the board should sign the resolutions.