A banking resolution is a vital document that outlines who in a business has the authority to act on its financial matters, such as opening bank accounts or making key transactions. Discover its significance, how to create one, and why every LLC or corporation might need it in their toolkit.
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Last Updated: January 9, 2026
A banking resolution is an important part of a new business’s financial foundation, but some entrepreneurs aren’t very familiar with the term. This guide will walk new business owners through the essential facts about a banking resolution, including what it is, how to create one, and more.
A banking resolution is a formal declaration that states who’s allowed to do what when it comes to a company’s banking activities. From withdrawing funds to taking loans, this document sets the ground rules, helping ensure no gray areas.
If a company is operating as an LLC (limited liability company), an LLC banking resolution highlights the members of the LLC who have the authority to deal with financial matters. Whether it’s accessing the bank account, authorizing checks, or making pivotal financial decisions, this resolution spells it out, offering clarity in financial actions.
For those who run a more structured corporate setup, there’s the corporate banking resolution. This paperwork is primarily adopted by a company’s board of directors, shedding light on which officers or other persons can take financial actions on the corporation’s behalf. Simply put, it’s a guideline for banks to know who holds the financial power in a corporation.
The intricacies of a banking resolution can be like a well-organized toolbox. Each component has a unique role in ensuring that the document functions efficiently. When drafting a banking resolution, here are the key elements business owners will want to include:
Every official document starts with a clear title, and for a banking resolution, it’s no different. This title should be straightforward, such as “Banking Resolution of [the Company’s Name].” It offers a quick reference and sets the stage for what follows.
This is the section where it’s declared that the company’s board of directors or members have convened and agreed upon the terms specified in the resolution. It provides context, showing that this isn’t just a solitary decision but a collective agreement. The statement might read something like, “The following was unanimously agreed upon by the board of directors of [the Company’s Name] on [specific date].”
Here’s where the banking resolution gets specific. This spot will list every individual who is authorized to act on the company’s behalf in banking matters. While the list might seem tedious, it helps ensure clarity; it tells the bank precisely who they should expect and trust to handle the business’s financial transactions.
Not every authorized individual might have the same power over the company’s financials. While one might only be allowed to view transactions, another could have the authority to withdraw funds or take out loans. This section outlines these distinctions, helping ensure each person knows their boundaries and the bank understands their limitations.
Does the banking resolution have an expiration date? Sometimes, companies set a time frame, especially if they’re granting temporary financial powers due to specific situations or projects. If there’s a validity period, it needs to be clearly stated in the banking resolution. If not, it’s wise to mention that the resolution remains in effect until the company provides a new one.
Finally, no official document is complete without signatures. This section solidifies the legitimacy of the banking resolution. Each member of the board of directors or the company’s members involved should sign, affirming their agreement and understanding of the document (see the board of directors definition here).
Each of these components helps ensure that a banking resolution is comprehensive, clear, and serves its intended purpose, paving a smoother path for a business’s financial dealings.
Navigating the waters of crafting a banking resolution might seem daunting at first. Here’s a quick step-by-step guide on how to write one.
First, the resolution should kick things off with a clear, descriptive title at the top. Something like “Banking Resolution of [the Company’s Name]” should work just fine. It gives readers an immediate understanding of the document’s purpose.
Next, the resolution should include a statement confirming that the board or company members have met and agreed upon what’s outlined in the resolution. A simple statement, such as, “This resolution was unanimously agreed upon by the board of directors of [the Company’s Name] on [specific date],” sets the tone and context.
The resolution will need to detail every person authorized to act on the company’s behalf in its banking matters. It’s a little like rolling out a VIP list for the bank – these are the folks trusted with the business’s financial actions.
Next, the resolution should outline the powers each listed individual holds. Do they have the authority to make withdrawals, view transactions, or take out loans on behalf of the company? This section needs to be specific and clear, ensuring there’s no room for confusion later.
The resolution needs to specify the duration of its terms. For example, if the resolution has an expiration date, the document needs to explain when it will end. If certain people have ongoing responsibilities with the resolution and others don’t, the resolution needs to specify how long those roles last. Alternatively, if the terms of the banking resolution never expire, the resolution should state that it remains in effect until replaced by a new one.
This is where things get official. Every relevant party, such as board members or authorized company representatives, must sign the document. Their signature is their nod of agreement and understanding.
A document as important as a banking resolution deserves a second (or third) look. A wise business owner will take the time to ensure clarity, check for any mistakes, and confirm that all details align with their company’s intent and the bank’s requirements.
Writing a banking resolution is much like following a recipe. When taken step by step, it’s manageable to create a document that’s both efficient and essential for the business.
Starting a banking resolution might feel like a mountain of a task, especially for entrepreneurs who are unsure about the precise language or format. That’s where templates can be a guiding star. Using templates can provide a solid foundation, but it’s essential for business owners to ensure that the company they choose is reputable; the template should be created by experts. A good template can help reduce the risk of unexpected detours or potential banking challenges later on.
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Just as a captain wouldn’t set sail with an outdated map, a business shouldn’t operate with an outdated banking resolution. Keeping a banking resolution up-to-date can help ensure that it actually meets the business’s needs. For example, if the board membership changes or one of the LLC members changes roles, the banking resolution will need to reflect those changes. Wise business owners will make it a habit to revisit their banking resolutions periodically, ensuring a consistently smooth experience at the bank.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.
ZenBusiness is committed to helping entrepreneurs on every step of their entrepreneurial journey. The maze of starting a business can be daunting, but with ZenBusiness’s expertise, no entrepreneur is alone. Their business documents package includes a banking resolution package, which can be added to any LLC or corporation formation package. ZenBusiness can also help entrepreneurs open a business bank account and hit the ground running so they can turn their dreams into a reality.
An LLC or corporate banking resolution is the simplest way to authorize someone to open a bank account and provide a signature for the business. This document is created by the owners of a limited liability company (LLC) or the board of directors for a corporation. It’s commonly agreed on during the initial meeting of the owners or board, but it can also be drafted or altered in future meetings.
For protection. Separating a business account from personal ones helps an entrepreneur minimize the risk of losing their personal assets in a lawsuit. Also, a business bank account builds trust and credibility with customers, vendors, and suppliers.
A banking resolution for an LLC is a formal document that outlines the specific individuals within the LLC who are authorized to how to open a business bank account, access company funds, or make financial decisions on behalf of the company. It provides clarity on who holds these rights and responsibilities within the LLC structure.
Yes, most banks require a banking resolution for an LLC when opening a business bank account. This resolution provides the bank with a clear picture of who is authorized to conduct banking transactions on behalf of the LLC. Even if not explicitly required, having one can prevent confusion or disputes down the road.
The purpose of a banking resolution is twofold. For businesses, especially LLCs or corporations, it’s a formal declaration of which members or officers are authorized to act on financial matters for the company, including opening bank accounts or taking loans. For banks, it’s a way to ensure clarity on who can make decisions on the company’s behalf, reducing potential liability and risks. This document ensures transparent and clear financial governance within a company.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
Written by ZenBusiness Editorial Team
The ZenBusiness Editorial Team has more than 20 years of combined small business publishing experience and has helped over 850,000 entrepreneurs launch and grow their companies. The team’s writers and business formation experts are dedicated to providing accurate, practical, and trustworthy guidance so business owners can make confident decisions.
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