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  • Danielle Brent-Bownes

Why Every LLC Should Pass Resolutions in Their Business

As a small business owner, it's important to stay organized and on top of important decisions that impact your company. One way to do this is by passing resolutions in your LLC. But what exactly are resolutions, and why are they important?

What are Resolutions?

A resolution is a formal statement of a decision or action that has been taken by an LLC. It is typically used to document important decisions made by the company, such as changes to the company's articles of organization, the addition or removal of a member, or the sale of company assets.

Why are Resolutions Important?

Passing resolutions in your LLC has several benefits. First and foremost, it helps to ensure that important decisions are properly documented and can be easily referenced in the future. This is especially important if there are disputes or misunderstandings about a particular decision or action that was taken. Resolutions can also help to protect the integrity of your LLC. By documenting important decisions, you can demonstrate that the proper processes and procedures were followed, which can be important in the event of legal action or disputes with third parties.

In addition, passing resolutions can help to maintain transparency within your LLC. By documenting important decisions, you can ensure that all members are aware of what is happening within the company and can provide an opportunity for them to voice any concerns or objections.

Overall, passing resolutions in your LLC is a simple yet effective way to stay organized, protect the integrity of your business, and maintain transparency. Don't neglect this important step – make sure to pass resolutions for all important decisions in your LLC.

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