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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

  1. 1

    A Business Bank Account Resolution is legally required by most financial institutions before they will allow you to open a business bank account.

  2. 2

    The resolution protects both your business and the bank by clearly documenting who has authority to manage company finances.

  3. 3

    For family businesses, clearly defining financial authority through a resolution can help prevent conflicts and ensure business continuity during family transitions.

  4. 4

    First-time entrepreneurs should understand that a proper bank resolution is a key step in establishing the legal separation between personal and business finances.

  5. 5

    The resolution should be updated whenever there are changes in personnel, business structure, or banking needs.

  6. 6

    Professional service providers must ensure their resolutions address any industry-specific requirements for handling client funds or trust accounts.

  7. 7

    Many banks provide their own resolution templates, but having an attorney review the document can provide additional protection for your business.

  8. 8

    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 Wisconsin, 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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Wisconsin Requirements for Business Bank Account Resolution

  • Corporate Authority Under Wisconsin Business Corporation Law (Wisconsin Statutes § 180.0302)

    The resolution must comply with Wisconsin Statutes Chapter 180, which governs the authority of corporations to conduct business, including establishing banking relationships. The resolution should explicitly state the corporation's authority to open and maintain bank accounts.

  • LLC Authority Under Wisconsin Limited Liability Company Law (Wisconsin Statutes § 183.0401)

    For LLCs, the resolution must comply with Wisconsin Statutes Chapter 183, which establishes the authority of limited liability companies to conduct banking activities and designate authorized representatives.

  • Partnership Authority Under Wisconsin Partnership Law (Wisconsin Statutes § 178.0301)

    For partnerships, the resolution must comply with Wisconsin Statutes Chapter 178, which governs the authority of partnerships to conduct business activities including banking relationships.

  • Wisconsin Banking Regulations Compliance (Wisconsin Statutes § 220.04)

    The resolution must comply with Wisconsin banking regulations that govern business accounts, including requirements for proper documentation of business authority.

  • Uniform Commercial Code - Bank Deposits (Wisconsin Statutes § 404.101 et seq.)

    The resolution must comply with Wisconsin's adoption of the Uniform Commercial Code provisions regarding bank deposits and collections, which govern the relationship between depository banks and their customers.

  • Federal Deposit Insurance Corporation Compliance (12 U.S.C. § 1811 et seq.)

    The resolution must acknowledge compliance with FDIC regulations governing insured deposits and the bank's obligations as an FDIC-insured institution.

  • Bank Secrecy Act Compliance (31 U.S.C. § 5311 et seq.)

    The resolution must acknowledge the business's obligation to comply with the Bank Secrecy Act, which requires financial institutions to assist government agencies in detecting and preventing money laundering.

  • USA PATRIOT Act Compliance (31 CFR § 1020.220)

    The resolution must acknowledge compliance with the USA PATRIOT Act's Customer Identification Program requirements, which mandate verification of the identity of persons opening accounts.

  • Authorized Signatories Designation (Wisconsin Statutes § 180.0841 (for corporations) or § 183.0301 (for LLCs))

    The resolution must clearly designate the individuals authorized to act on behalf of the business in banking matters, in accordance with Wisconsin agency law principles.

  • Electronic Funds Transfer Act Compliance (15 U.S.C. § 1693 et seq.)

    The resolution must acknowledge compliance with the Electronic Funds Transfer Act, which provides a framework for the rights and liabilities of participants in electronic fund transfer systems.

  • Regulation E Compliance (12 CFR § 1005)

    The resolution must acknowledge compliance with Regulation E, which implements the Electronic Funds Transfer Act and establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer services.

  • Wisconsin Uniform Fiduciaries Act (Wisconsin Statutes § 112.01)

    The resolution must comply with Wisconsin's Uniform Fiduciaries Act, which governs the responsibilities of individuals acting in a fiduciary capacity for the business in banking matters.

  • Internal Revenue Service Requirements (26 U.S.C. § 6109)

    The resolution must acknowledge compliance with IRS requirements for business bank accounts, including the obligation to provide an Employer Identification Number (EIN) and comply with tax reporting requirements.

  • Wisconsin Department of Financial Institutions Compliance (Wisconsin Statutes § 220.02)

    The resolution must comply with any specific requirements established by the Wisconsin Department of Financial Institutions for business banking relationships.

  • Corporate Seal Requirements (Wisconsin Statutes § 180.0302(2))

    If the business uses a corporate seal, the resolution should address its use in banking documents in accordance with Wisconsin law regarding corporate formalities.

  • Uniform Facsimile Signatures of Public Officials Act (Wisconsin Statutes § 991.01)

    The resolution should address the use of facsimile signatures in accordance with Wisconsin's adoption of the Uniform Facsimile Signatures of Public Officials Act, which may apply to certain business entities.

  • Federal Reserve Regulations Compliance (12 CFR § 204 et seq.)

    The resolution must acknowledge compliance with applicable Federal Reserve regulations governing business banking relationships and transactions.

  • Wisconsin Consumer Act Considerations (Wisconsin Statutes § 421.101 et seq.)

    The resolution should acknowledge compliance with the Wisconsin Consumer Act to the extent it may apply to certain business banking relationships, particularly for small businesses.

  • Office of Foreign Assets Control Compliance (31 CFR § 500 et seq.)

    The resolution must acknowledge compliance with OFAC regulations, which prohibit transactions with certain foreign countries, organizations, and individuals.

  • Beneficial Ownership Information Disclosure (31 CFR § 1010.230)

    The resolution must acknowledge the business's obligation to disclose beneficial ownership information in accordance with FinCEN's Customer Due Diligence Requirements.

Frequently Asked Questions