Small business owners often do not realize that certain business documents need to be notarized. A corporate resolution is one of these important documents. Understanding when and why you need notarization can protect your business and make banking and legal transactions much smoother.
**What Is a Corporate Resolution?**
A corporate resolution is a document that shows your business made an official decision. The resolution records that decision in writing and gets approval from the business owners or board of directors. Resolutions are formal decisions about important business matters.
Examples of resolutions include authorizing someone to open a business bank account, approving a loan, making major purchases, or changing business operations. When you make big decisions, you create a resolution to document that decision officially.
**Why Do Businesses Need Resolutions?**
Banks and lenders require resolutions. When you apply for a business loan, the bank wants proof that the business owners approved the loan. A resolution provides that proof.
Tax authorities want resolutions. When you make certain business changes, you need to document them for tax purposes. A resolution creates an official record.
Investors and partners want resolutions. If you have investors or business partners, they want written proof of major business decisions. This protects everyone.
**When Do Resolutions Need Notarization?**
Not all resolutions need notarization, but many do. Banks often require notarized resolutions before they will open a business account or approve a loan. If you are borrowing money, the lender almost certainly requires notarization.
Tax situations sometimes require notarized resolutions. Government applications might require them. Any time an outside party requires a resolution, ask if they need it notarized.
**What Happens During Notarization of a Resolution?**
A notary public will review your resolution. They will verify that the business owners or authorized people signed the document. They will check identification to confirm everyone is who they claim to be. They will make sure everyone signed willingly.
The notary will add their official seal and signature. This certifies that the resolution is authentic and that the signers were properly identified.
**Common Business Resolutions**
Opening a business bank account often requires a notarized resolution. The bank wants proof that authorized people agreed to open the account and who is authorized to sign checks.
Applying for a business loan requires notarized resolutions. The lender wants proof that the business officially agreed to borrow the money.
Hiring key employees sometimes requires a resolution. The document shows the business officially hired that person and authorized their employment terms.
Buying equipment or property might require a resolution. If you are borrowing money for the purchase, the lender will definitely require a notarized resolution.
**Getting Your Business Documents Notarized**
You need a professional notary who understands business documents. Our team at Fast Mobile Notary has experience with corporate resolutions and business documents. We can notarize your resolutions at your office, making it convenient for you and your team.
We understand the importance of accuracy when notarizing business documents. We verify everything carefully and ensure all signatures are witnessed properly.
**Protecting Your Business**
Notarized business documents protect your company. They create an official record of business decisions. They prevent disputes later about whether a decision was authorized.
If someone questions whether you had authority to make a business decision, a notarized resolution proves you did. This legal protection is worth the small cost of notarization.
**Working with Your Accountant or Attorney**
Your business attorney or accountant might request that certain documents be notarized. Follow their advice. They know what your business needs for legal and tax purposes.
If your accountant or attorney recommends notarization, do not delay. Getting documents notarized promptly keeps your business running smoothly.
**Common Mistakes to Avoid**
Do not assume you do not need notarization. Ask your bank or lender if they require it. Do not wait until the last minute. Notarization can usually happen quickly but do not create a rush situation.
Make sure all authorized signers are present when the document is notarized. Each person must sign in front of the notary and bring identification.
**The Cost Is Minimal**
Notarizing a business resolution costs very little compared to the legal protection it provides. The investment is small and the peace of mind is great.
**Keeping Your Business Protected**
Run your business professionally. Document important decisions. Get documents notarized when required. This approach protects your business and prevents problems later.
Fast Mobile Notary can handle all your business notarization needs in Austin. We come to your office for your convenience. [Contact us today](https://austintexasmobilenotarypublic.com/contact/) to discuss your business document notarization needs. Visit our [home page](https://austintexasmobilenotarypublic.com/) to learn more.
**External Resources:**
– [Texas Secretary of State Business Formation Guide](https://www.sos.texas.gov/business/)
– [Small Business Administration Legal Resources](https://www.sba.gov/business-guide/)