Keep a record of important decisions: Board Resolution

A Board Resolution is a way of documenting a decision made by a business' Board of Directors on behalf of the business. The business might decide to extend a loan to another business, or to vote another officer onto the Board. After the resolution is made during a meeting, a Board Resolution document is typically used to get the specifics of the resolution in writing.

Board Resolutions can cover a wide variety of actions. Commonly, they are written when a new member of board is voted in, but they can also be created when the company wants to hire employees, sell shares of the corporation, purchase an existing patent, among other big decisions. They serve as important compliance documents as well as giving your company a concrete record of the choices your directors or shareholders have made.

Generally, Board Resolutions do not need to be submitted to a government agency, oversight body, or anything of the sort. They should be kept with your books so you can furnish them if, for example, an important board member wants to know what actions the board took. Board Resolutions can be kept with your Meeting Minutes and are treated as legally binding decisions made by your business.

• You want to document a decision made by members of a business' board of directors.

If you already have a Board Resolution and want to have it reviewed, or if you have questions about creating or using one, there are a few ways to get help.

Use Rocket Copilot to ask questions or review your document; this helps you better understand what it says and identify anything that may need a closer look.

If you are looking for help from a Legal Pro, you can also ask a question and receive a response within one business day, or request a more in-depth document review.

Many business owners choose to register their LLC after creating their Board Resolution. If that’s your next step, Rocket Lawyer can help you get started. You can begin your LLC registration in minutes, starting at $0* with a Rocket Lawyer membership (excluding state fees).

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^{*The first business registration free offer excludes government and third-party fees and requires a current Rocket Lawyer membership. The offer applies to the first LLC, corporation, or nonprofit registration per customer. Additional registrations are $99.99 each. Terms and conditions apply.}