When you establish a Limited Liability Company (LLC), one of the most critical steps after formation is opening a dedicated business bank account. This separation of personal and business finances is vital for maintaining liability protection and for accurate bookkeeping. To open this account, most banks will require a formal document called a banking resolution. This resolution acts as an official internal document, authorizing specific individuals within your LLC to manage its bank account. It outlines who has the authority to open, close, deposit, withdraw, and otherwise transact on behalf of the LLC with the financial institution. Without this, you may find yourself unable to access essential banking services for your new business. Think of the banking resolution as a formal internal mandate. While your LLC's Operating Agreement dictates the overall management structure and member roles, the banking resolution specifically grants authority for banking activities. It's a document that reassures the bank that the individuals requesting access are legitimately authorized by the LLC's members or managers. This is particularly important for newly formed LLCs where the bank may not be familiar with your business structure or its principals. Ensuring you have this document prepared, along with your LLC formation documents like the Certificate of Formation and your EIN, will streamline the process of establishing your business banking relationship.
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