Starting a Business

How do I legally resign from a corporation?

min read
Opinions expressed by Entrepreneur contributors are their own.
As long as you have made it clear that you have severed your ties with the corporation, you should not be held responsible for tax liabilities or debts of the corporation that might accrue from activities on or after the date of your resignation. However, be aware that tax liabilities might arise after the date of your resignation that pertain to pre-resignation issues. To be sure that your resignation is properly documented, make sure you submit your resignation letter in writing and send it either by certified mail or some other form of delivery that is recorded such as overnight courier (or, if you're passing the note to your business partner, get him or her to countersign the letter acknowledging receipt). In addition, your bylaws or shareholder's agreement should cover the procedure for your resignation and buyout and, ideally, provide you with indemnity by the remaining shareholder and corporation if you are called upon to pay any future debts or judgments.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.