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A corporate resolution is a formal document that includes actions and decisions made by a company's board of directors or, in the case of an LLC, its members. These resolutions are necessary for specific business transactions and serve to document the actions taken on behalf of the corporation. It's important to maintain records of resolutions and meeting minutes in a corporate minute book for long-term preservation, as they may be needed to validate decisions if challenged. Not every board action requires a resolution; only those that significantly impact the company's direction, finances, or structure do. A corporate resolution must adhere to a standard legal structure when drafted.