What legal paperwork needs to be filed with the state, when you resign and sell shares of a business to your business partner?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What legal paperwork needs to be filed with the state, when you resign and sell shares of a business to your business partner?
My husband and I have owned a small business together, I own 51% of the stock, I would like to resign and give him my shares of the stock. What legal paperwork needs to be filed with the State of IL and federal government? Do we need an attorney or is a letter of resignation and updated corporate minutes enough? I am assuming that we need to refile the annual report with the state reflecting the change in officers? Budget is tight.
Asked on July 13, 2010 under Business Law, Illinois
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Do you have a partnership agreement? Does it speak to how and what you are to do? Are there any other shareholders? Is the business a corporation? Your Articles of Incorporation most likely list you as a partner and allocate the stock. You may have to amend the articles in order accurately reflect the changes and file the amendment with the state along with the referendum in the corporate minutes that show what you are doing and that it was voted on. As for the Federal Government, I am assuming that you are referring to the tax implications. For that I would consult an accountant as to what you need to file.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.