Business Bank Account Resolution Guide: What Entrepreneurs Need to Know
Learn everything about business bank account resolutions - why they're essential for entrepreneurs, family businesses, and professional service providers, and how to properly prepare one.
Introduction
A Business Bank Account Resolution is a formal document that authorizes specific individuals to open and manage a bank account on behalf of a business entity. This critical legal document serves as proof to financial institutions that certain people have the legal authority to act on the company's behalf in banking matters. Whether you're starting a family business, launching your first entrepreneurial venture, or establishing a professional service firm, understanding how bank account resolutions work is essential for properly managing your business finances and ensuring smooth banking operations.
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Key Things to Know
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A Business Bank Account Resolution is legally required by most financial institutions before they will allow you to open a business bank account.
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The resolution protects both your business and the bank by clearly documenting who has authority to manage company finances.
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For family businesses, clearly defining financial authority through a resolution can help prevent conflicts and ensure business continuity during family transitions.
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First-time entrepreneurs should understand that a proper bank resolution is a key step in establishing the legal separation between personal and business finances.
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The resolution should be updated whenever there are changes in personnel, business structure, or banking needs.
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Professional service providers must ensure their resolutions address any industry-specific requirements for handling client funds or trust accounts.
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Many banks provide their own resolution templates, but having an attorney review the document can provide additional protection for your business.
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Maintaining detailed records of when and how the resolution was adopted is important for legal compliance and potential future disputes.
Key decisions before you file
Before you file a Business Bank Account Resolution in Washington, a few decisions shape the document: which option to choose and what each one means. The Business Bank Account Resolution guide walks through them.
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Washington Requirements for Business Bank Account Resolution
Uniform Commercial Code Compliance (RCW 62A.4-101 et seq.)
The resolution must comply with Washington's adoption of the Uniform Commercial Code (UCC), particularly Article 4 governing bank deposits and collections, which establishes the legal framework for the bank-customer relationship.
Corporate Authority Documentation (RCW 23B.08.210)
For corporations, the resolution must comply with Washington Business Corporation Act requirements regarding corporate authority and documentation of board actions authorizing individuals to act on behalf of the corporation.
LLC Authority Documentation (RCW 25.15.154)
For LLCs, the resolution must comply with Washington Limited Liability Company Act provisions regarding management authority and documentation of member/manager authorization.
Partnership Authority Documentation (RCW 25.05.100)
For partnerships, the resolution must comply with Washington's Uniform Partnership Act provisions regarding partner authority and documentation of partnership authorization.
Financial Institution Regulations Compliance (RCW 30A.04.010 et seq.)
The resolution must comply with Washington Department of Financial Institutions regulations governing business banking relationships and account opening procedures.
Customer Identification Program (31 CFR § 1020.220)
The resolution must facilitate compliance with federal Bank Secrecy Act requirements for Customer Identification Programs (CIP), including proper identification of authorized signatories.
Beneficial Ownership Disclosure (31 CFR § 1010.230)
The resolution must support compliance with FinCEN's Beneficial Ownership Rule, requiring disclosure of individuals who own 25% or more of the business and at least one individual who controls the business.
Anti-Money Laundering Compliance (Bank Secrecy Act, 31 USC § 5311 et seq.)
The resolution must facilitate compliance with federal anti-money laundering laws and regulations, including proper documentation of authorized account activities.
OFAC Compliance (31 CFR Part 501)
The resolution must support compliance with Office of Foreign Assets Control (OFAC) regulations prohibiting transactions with sanctioned entities and individuals.
Electronic Funds Transfer Authorization (15 USC § 1693 et seq.; Regulation E (12 CFR Part 1005))
The resolution must comply with Electronic Fund Transfer Act provisions if authorizing electronic banking services, including proper authorization for electronic transactions.
Signature Authority Designation (RCW 11.98.070)
The resolution must clearly designate authorized signatories in compliance with Washington's agency law principles regarding delegation of authority.
Corporate Seal Requirements (RCW 23B.01.200)
If the business uses a corporate seal, the resolution must comply with Washington's provisions regarding corporate seals and their use in official documents.
Business Entity Registration Compliance (RCW 23.95.255)
The resolution must accurately reflect the business entity's registration status with the Washington Secretary of State, including proper entity name and registration number.
Uniform Fiduciary Access to Digital Assets Act (RCW 11.120.010 et seq.)
The resolution should address digital banking access in compliance with Washington's adoption of the Uniform Fiduciary Access to Digital Assets Act.
Regulation CC Compliance (12 CFR Part 229)
The resolution must support compliance with Regulation CC regarding funds availability policies and check clearing procedures.
Truth in Savings Act Compliance (12 USC § 4301 et seq.; Regulation DD (12 CFR Part 1030))
The resolution must facilitate compliance with Truth in Savings Act requirements regarding disclosure of terms for deposit accounts.
Gramm-Leach-Bliley Act Privacy Provisions (15 USC § 6801 et seq.; Regulation P (12 CFR Part 1016))
The resolution must support compliance with GLBA privacy provisions regarding the protection of customer financial information.
Washington Consumer Loan Act Compliance (RCW 31.04.015 et seq.)
If the business will be engaging in lending activities, the resolution must comply with Washington Consumer Loan Act provisions regarding licensing and authorization.
Remote Deposit Capture Authorization (12 USC § 5001 et seq.)
If authorizing remote deposit capture services, the resolution must comply with Check 21 Act provisions regarding substitute checks and electronic check processing.
Washington Uniform Money Services Act (RCW 19.230.010 et seq.)
If the business will engage in money transmission or currency exchange, the resolution must comply with Washington's Uniform Money Services Act regarding proper authorization and licensing.