What legal paperwork needs to be filed with the state, when you resign and sell shares of a business to your business partner?

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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 11 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. 


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