When buying or selling a business in California, you need to update all relevant governments agencies. You should consult with your attorney as each business has different requirements, but here is a list of agencies that most often need to be updated.
1. The California Employment Development Office
If the business runs payroll in California, you will need to update the Employment Development Office (EDD).
You can do so by submitting the Notification of Change of Employer Account Information (Form DE 24).
2. Seller’s Permit
If the business collects sales tax, you will need to close out the current seller’s permit account and open up a new account.
To close out the current permit, you will need to file Form CDTFA-65.
To open up a new account, you will go to the Board Of Equalization’s website, which you can access here.
If you have any trouble, you can call the Board Of Equalization at 1-800-400-7115 and they will walk you through the process step-by-step.
3. IRS
If you are selling the equity in a legal entity, to update the IRS of the responsible party you will need to write a letter. The letter must include: (i) the name and social security number of the person that will be the new responsible party, (ii) the business name, (iii) the company’s federal employer identification number (EIN), and (iv) the company’s the mailing address.
If the entity’s principal business is located in California, you can mail the letter to:
Internal Revenue Service
M/S 6273
Ogden, UT 84201
Or you can fax it to (801) 620-7116.
4. California Secretary Of State’s Office
You will need to file an updated Statement Of Information with the California Secretary Of State’s Office. You can do so here.
5. City Business Registration Certificate
You will have to update the business registration with the city.
Buying or selling a company has many steps and we highly recommend that you speak with an attorney before starting the process. If you would like to talk more about selling or buying a business, please give us a call at (415) 633-6841 or send us an e-mail at info@bendlawoffice.com.
Disclaimer: This article discusses general legal issues and developments. Such materials are for informational purposes only and may not reflect the most current law in your jurisdiction. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel in the relevant jurisdiction. Bend Law Group, PC expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this article.