How do I legally resign from a corporation?

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
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

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur