Even if you're not close with your boss, chances are you have a working, first_name_basis relationship. Maintaining that in your official letter is okay. You don't need to keep a Victorian level of formality here__just make sure it's a professional tone.
Acceptance With Grace. The best_case scenario__and honestly, the most common reaction__is that your boss will accept your resignation with understanding and sincere congratulations. Your manager will be happy to see that you're advancing your career and moving on to something bigger and better.