KEY TAKEAWAYS - An LLC banking resolution is the document most banks require before opening a business account in your LLC's name. - It names who is authorized to sign checks, apply for loans, and access funds on behalf of the company. - Most states do not legally require LLCs to pass resolutions - but banks and lenders almost always do. - Updating your banking resolution whenever a member joins or leaves the LLC protects the company from unauthorized account access. - 360 Legal Forms provides attorney-vetted, state-specific LLC banking resolution templates you can customize and download instantly.
What Is an LLC Banking Resolution?
An LLC banking resolution is a formal internal document that records the members' or managers' decision to open a business bank account and identifies who holds the authority to conduct banking transactions on the company's behalf.
Banks require this document as proof that the person walking through the door - or submitting the online application - is legally authorized to act for the LLC. Without a banking resolution, most financial institutions will not process your business account application.
Banking Resolution for LLC vs. Corporation: What's the Difference?
Both LLCs and corporations use banking resolutions when opening business accounts. The difference lies in who passes the resolution and how.
For corporations, the board of directors formally adopts a banking resolution at the first board meeting - and they are legally required to maintain this record-keeping. For LLCs, the resolution is passed by members (in a member-managed LLC) or managers (in a manager-managed LLC), and no state currently requires LLCs to pass resolutions by law.
If you operate a corporation rather than an LLC, 360 Legal Forms offers a separate Corporate Banking Resolution template.
Do LLCs Have to Have a Banking Resolution?
Most states do not legally require LLCs to pass resolutions - but that does not mean you can skip this document. Banks and financial institutions almost universally require a banking resolution before opening a business account in an LLC's name.
Your LLC's operating agreement may also require a banking resolution for any financial decisions. Even if neither the law nor your operating agreement mandates one, having a signed, dated banking resolution on file protects your LLC from unauthorized account access and strengthens your standing with lenders.
Other Names for LLC Banking Resolution
Depending on your state or financial institution, an LLC Banking Resolution may also be known as:
● Limited Liability Company Banking Authorization Resolution
● Corporate Resolution to Open Bank Account
● Business Resolution for Banking
● Bank Resolution Form
● LLC Resolution Letter for Banking
Who Needs an LLC Banking Resolution?
Any LLC planning to open a business bank account, apply for a business loan, or authorize members to conduct financial transactions on the company's behalf needs an LLC banking resolution. It is one of the core business legal forms every new business owner should complete before their first banking appointment.
Single-Member LLCs
Even if you are the only member of your LLC, most banks still require a banking resolution when you open a business account. The resolution formally documents that you, as the sole member, are authorized to manage all banking activities. Some banks will allow a single-member LLC to use the owner's Social Security Number (SSN) instead of an EIN - but your LLC's Employer Identification Number (EIN) offers better privacy protection and simplifies recordkeeping.
Multi-Member LLCs
For LLCs with two or more members, a banking resolution is especially important. It defines exactly which members are authorized signatories - preventing disputes over who can write checks, make withdrawals, or apply for loans. Without a signed, state-specific banking resolution on record, any member could potentially claim authority to act on the company's behalf.
New Business Owners Opening Their First Business Account
When you first form your LLC, most banks require a set of documents before opening your account: your Articles of Organization, EIN, operating agreement, business license (where applicable), and a banking resolution. Having your LLC banking resolution ready before your first banking appointment eliminates delays and prevents follow-up trips.
LLCs Adding or Removing Members
IMPORTANT: When a member leaves your LLC or a new member joins, update your banking resolution immediately. A former member whose name remains on an outdated banking resolution may still have legal authority to access company accounts. Passing a revised LLC banking resolution - and submitting it to your financial institution - is the most reliable way to protect yourself, the company, and the remaining members.
What Does an LLC Banking Resolution Include?
A complete LLC banking resolution template covers every material detail your bank needs to process the account opening and establish the authorized users' list. Missing a single required field can delay your account approval.
Required Fields in an LLC Banking Resolution
A standard LLC banking resolution document - also called a bank resolution form or limited liability company resolution for banking - must include:
- LLC Name and State of Formation: The full legal name of the LLC and the state where it was organized.
- Effective Date: The date the banking resolution goes into effect.
- Type of Meeting: Whether the resolution was passed at a regular, annual, or special meeting - or adopted without a meeting by written consent.
- Date of the Meeting: The date members or managers formally adopted the resolution.
- Resolution Type: Whether the managers, members, or both are passing the resolution.
- Authorized Signatories: Full legal names of the individuals authorized to open accounts, sign checks, make withdrawals, apply for loans, and conduct other banking transactions on the LLC's behalf.
- Signatory Titles: The role of each authorized signer - CEO, treasurer, president, vice president, or managing member.
- Bank Name and Address: The full legal name and branch address of the financial institution.
- Permissions: Whether authorized signatories may establish a night depository or access a safe deposit box on behalf of the LLC.
- Signing Representative Name and Date: The name of the certifying officer and the date of certification.
Documents You'll Need to Open an LLC Bank Account
An LLC banking resolution is one part of the documentation package your bank will request. Most financial institutions also require:
IMPORTANT: Banking requirements vary by financial institution. Contact your bank directly before your appointment to confirm exactly which documents they require - and whether they use their own proprietary banking resolution form in addition to yours.
How Do I Write an LLC Banking Resolution? Step-by-Step
Writing an LLC banking resolution - also called a bank resolution sample or resolution letter for banking - requires the correct format for your state and accurate information about your LLC's authorized signatories. Follow these four steps to get it right.
Step 1: Gather Your LLC's Formation Information
Before you begin, have your LLC's full legal name, state of formation, EIN, and operating agreement in hand. You will also need the full legal names and titles of all members or managers who will serve as authorized signatories on the account.
Step 2: Define the Authorized Signatories and Their Permissions
Specify exactly who can sign checks, make withdrawals, apply for loans, and initiate wire transfers on behalf of the LLC. For multi-member LLCs, confirm that the voting threshold in your operating agreement was met before adopting the resolution - majority vote or unanimous consent, depending on your agreement.
Step 3: Record the Meeting Details and Vote
Document the type of meeting (regular, annual, or special), the date it was held, and the outcome of the vote. If the resolution was adopted by written consent without a meeting - which many LLCs opt for - note that clearly in the document.
Step 4: Certify, Sign, and Submit to Your Bank
The authorized signing representative signs and dates the completed LLC banking resolution. If your bank requires certification, a certifying officer (typically the president, CEO, or managing member) executes the certificate. Deliver a signed copy to your bank, and keep the original in your LLC's official records book.
Why Use 360 Legal Forms for Your LLC Banking Resolution?
Customized for You, by You
Answer a short, guided questionnaire and get an LLC banking resolution built around your exact situation, whether you are a single-member LLC opening a first account or a multi-member LLC updating authorized signatories.
Specific to Your Jurisdiction
Banking and business laws vary by state. Each LLC banking resolution on 360 Legal Forms is customized for your state of formation.
Attorney-Vetted and Bank-Ready
Every LLC banking resolution template on 360 Legal Forms is reviewed by experienced attorneys, so you get a formal document most banks will accept without delay.
Fast and Easy
Fill out a simple questionnaire, then download your completed resolution as a PDF or Word file, ready to sign and bring to the bank.
How to Create an LLC Banking Resolution with 360 Legal Forms
At 360 Legal Forms, you customize your LLC banking resolution document and download it instantly. It includes every element needed to open your company's bank account and satisfies the proof-of-authority requirements of financial institutions across all 50 states.
Instead of drafting one manually and risking errors that delay your account opening, let 360 Legal Forms help with our trusted legal document service, backed by an extensive library of attorney-vetted legal forms. All you need to do is fill out our straightforward questionnaire - then download your completed document as a PDF or Word file from your secure online account.
What Information Will I Need to Create My LLC Banking Resolution?
To create your document, please provide:
- Effective Date: The date when the LLC Banking Resolution goes into effect.
- State of Formation: The state where your LLC is established.
- Resolution Type: Select whether the managers, members, or both are adopting the resolution.
- Type of Meeting: Specify whether the session was regular, annual, special, or conducted by written consent.
- Date of the Meeting: The date the resolution was formally adopted.
- Signing Representative Title: The signing representative can be the CEO, treasurer, president, vice president, or another person of authority in the LLC.
- Signing Representative Name: Only the full legal name is required - no other personal data.
- Date of the Resolution Certification: To be filled in when the resolution is certified.
- Bank Name: The full legal name of the banking institution.
- Bank Address: The full street address of the bank or branch location.
- Authorized Signatories: The individuals authorized to conduct banking transactions on the LLC's behalf.
- Permissions: Whether authorized signatories may establish a night depository and safe deposit box on behalf of the company.
What to Do with Your LLC Banking Resolution
After reviewing the completed document, certify your LLC banking resolution if your bank requires it. During this process, one or more LLC representatives sign the certificate to confirm the document's authenticity.
Your LLC retains a signed original copy of the certified resolution in its official records book, alongside the operating agreement, articles of organization, and other foundational documents. It may be presented to financial institutions, lenders, or legal authorities upon request.
IMPORTANT: Keep an electronic backup of your LLC banking resolution in a secure cloud account. Physical documents can be lost - and your bank may request a fresh certified copy if you ever need to update your authorized signatories or switch financial institutions.
A copy of the resolution is delivered to the designated bank, which uses it to open the account and establish the authorized signatories list. For any future changes - such as adding a new member, removing a departing one, or changing banking institutions - you will need to pass and submit an updated LLC banking resolution.
LLC Banking Resolution Terms
Understanding the legal language in your LLC banking resolution helps you complete it accurately and confidently.
LLC Banking Resolution Signing Requirements
An LLC banking resolution must be signed by the authorized signatories named within the document - those are the only individuals permitted to access and manage the company's bank account.
Authorized signatories are typically the president, vice president, CEO, treasurer, or managing members of the LLC. The number of required signatories and the specific titles recognized may vary depending on your LLC's operating agreement and the policies of your financial institution.
Certification of the banking resolution is optional unless your bank specifically requests it. However, a certified resolution - signed by a designated certifying officer - adds an additional layer of authority and may be required when the bank needs to work with third-party organizations on your behalf.
Conclusion
An LLC banking resolution is one of the first and most important business documents your LLC will create. It authorizes the right people to manage your company's finances, satisfies your bank's proof-of-authority requirements, and protects all members from unauthorized access to company accounts.
Whether you need an LLC banking resolution template for a single-member LLC, a multi-member business, or a manager-managed structure, 360 Legal Forms has an attorney-vetted, state-specific form ready for you. Free to start, downloadable in minutes, and formatted for acceptance at financial institutions across all 50 states.
360 Legal Forms is not a law firm and does not provide legal advice. The information provided on this page is for general informational purposes only and may not reflect the most current legal developments in your state. Consult a licensed attorney for advice specific to your situation.
