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Do you need a corporate resolution for an LLC?

A corporate resolution is a written document created by the board of directors of a company detailing a binding corporate action. A board of directors is a group of people that act as a governing body on behalf of the shareholders of a company.

Does every LLC have a corporate resolution?

Bylaws document the rules for how the corporation shall be governed. Resolutions are prepared as needed to document important decisions and actions taken by the board of directors on behalf of the corporation.

Who prepares a corporate resolution?

Unlike corporations, LLCs dont need to file business resolutions with the state. Single-member LLCs (SMLLCs) can also use business resolutions, even though there is no chance of disagreement among the members. Some LLC corporate resolution examples are: Protect the SMLLC in a lawsuit by leaving a legal paper trail.

What is the purpose of a corporate resolution?

They provide a clear trail of decisions made by a board, which is essential for legal compliance and accountability. Corporate resolutions also serve as a historical reference for the boards actions, and may be required for certain transactions or financial activities.

corporate resolution form illinois

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