Closing Your Business

The following information is for California employers who are closing their business.

Worker Adjustment and Retraining Notification (WARN) Act for Plant Closures and Mass Layoffs

Please review the WARN Act information.

Unemployment Insurance Benefits

California employers are required to provide information about claims for benefits to workers who become unemployed. The EDD publication For Your Benefit - California's Programs for the Unemployed (DE 2320) meets this requirement.

The DE 2320 (available in English, Spanish, Chinese, and Vietnamese) can be:

• Printed from the Forms and Publications section of this Web site
• Ordered using the Internet order form
• Picked up at your nearest Employment Tax Office

Payroll Taxes

If you are selling your business, the buyer may request a Certificate of Release of Buyer (DE 2220) and a reserve account transfer. See Selling Your Business for more information. You may obtain the DE 2220 through e-Services for Business.

If you no longer have employees and will not be reporting wages in any future quarter, you must send EDD a final:

• Payroll Tax Deposit (DE 88/DE 88ALL) with payment,
• Quarterly Contribution Return and Report of Wages (DE 9) and
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C).

Be sure to check Box B “Out of Business/No Employees” on the DE 9 and Box D on the DE 9C.

You must submit these documents within 10 days of closing your business, regardless of the normal due date.

See Obtaining Tax Forms and Publications to get any forms you may need.

Other Resources

From the Secretary of State:

• Corporations
• Limited Liability Companies
• Limited Liability Partnerships
• Limited Partnerships

California Small Business Assistance Center

From the Franchise Tax Board:

• Closing a Business Entity