I started a business with a partner, who needed my name (for good credit) to get the business going. As I am in disagreements with the way things are being done, I would like to sign over my ownership to get my name clear of any ownership obligations. The company is a C Corporation where I was a 25% owner.
Personal Injury Lawyer
Only the corporation is responsible for corporate debts; that is one reason that people set up corporations. What I suspect concerns you however, is that perhaps you have had to sign personal guarantees for what would otherwise be corporate debt, and you will continue to be responsible for those guarantees in the absence of agreement from the people who hold them. Good luck.
I agree with the prior response to this. Your real concern needs to be any personal guaranties outstanding. Also, if you are dissatisfied, is that something you want to address? You do have rights as a shareholder that it may be benficial for you to exert. Finally, if you withdraw and are successful at cancelling any personal guaranties, you should address income tax consequences of your withdrawal and discharge.
You should discuss these items with a Utah attorney and an accountant.
Best of luck.
JASON C. HUNTER
FROERER HUNTER & AHLSTROM, PLLC
Salt Lake City Office:
331 South Rio Grande Street, Suite 302
Salt Lake City, Utah 84101
2610 Washington Boulevard
Ogden, UT 84401