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A corporate resolution is a formal document that records decisions made by a company's board of directors or LLC members regarding significant business transactions. These resolutions are crucial for documenting actions taken on behalf of the corporation and should be maintained in a corporate minute book for long-term preservation. This is important in case the board's actions are ever questioned. Not all actions require a resolution; only those that significantly impact the company’s direction, finances, or structure. Corporate resolutions must follow a specific standard structure and serve as legal documentation of the board's decisions.