Short Answer: If a decision materially affects your business, document it.
Why It Matters: Major decisions involving ownership, financing, banking authority, executive hiring, significant contracts, leases, and strategic initiatives should be documented. Corporations generally use resolutions and minutes; LLCs often use written consents or resolutions under the Operating Agreement.
Common Mistakes: Relying on memory; making important decisions verbally; poor recordkeeping.
Michelle's Bottom Line: Today's documentation often becomes tomorrow's best protection.
