Changes to Your Business

Your legal business name is as it appears on your official registration documents. The DBA name is your business name known to the public. To report a change to your legal business name or DBA name: 

1. Log in to e-Services for Business.
2. From the Account Management Panel, select Update Account Information.
3. Enter the Date of Change.
4. From the drop down menu, select Legal Business Name Change or Business Name or DBA Change.
5. Enter the reason for change, then select Next.
6. Enter the new Legal Name. If the legal business name has not changed, enter the existing legal name.
7. Enter the new DBA Name. If the DBA name has not changed, enter the existing DBA name, then select Next.
8. Complete the remaining fields, then select Submit.

A business entity change can occur when there is a change in the employer’s legal entity type, for example changing from a Corporation to a Limited Liability Company (LLC). For more information on business entity changes, refer to the Information Sheet: Unity of Enterprise (DE 231UE) (PDF). To report a business entity change:

1. Log in to e-Services for Business.
2. From the Account Management Panel, select Update Account Information.
3. Enter the Date of Change.
4. From the drop down menu, select Business Entity Change then select the Type of Entity Change.
5. Enter the reason for change, then select Next.
6. Enter the new Legal Name. If the Legal name has not changed, enter the existing legal name.
7. Enter the new DBA Name. If the DBA name has not changed, enter the existing DBA name, then select Next.
8. Complete the remaining fields, then select Submit.

Note: If you received a new entity number such as a Secretary of State (SOS) Corporation number a SOS LLC number, a SOS Limited Liability Partnership (LLP), or SOS Limited Partnership (LP) number, provide those numbers in the appropriate fields.

If your new FEIN is a result of a business entity change, refer to Business Entity Change. To add a FEIN, report a new FEIN, or to correct your current FEIN:

1. Log in to e-Services for Business.
2. From the Account Management Panel, select Update Account Information.
3. Enter the Date of Change.
4. Select FEIN Change from the drop down menu.
5. Enter the reason for change, then select Next.
6. Complete the remaining fields, then select Submit.

A responsible party is an individual that controls, manages, or directs the entity and the disposition of the entity’s funds and assets. To add, change or remove a responsible party:

1. Log in to e-Services for Business.
2. From the Account Management Panel, select Update Account Information.
3. Enter the Date of Change.
4. Select Responsible Parties Change from the drop down menu.
5. Enter the reason for change, then select Next.
6. Select Add Responsible Party.
7. To add a responsible party, select Add. 
   • To update the name, title, or SSN of a responsible party, select Change.
   • To remove a responsible party, select Withdraw.
8. Complete the remaining fields, then select Submit.

If you are closing your business and will not be reporting wages in any future quarter, you must submit your final tax return, wage report, and payment within 10 days, regardless of the normal due dates. You must also close your employer payroll tax account.

If your business remains open, but you no longer have employees and you don’t anticipate hiring employees, you must submit your final forms and payments and close your employer payroll tax account.

To close your account:

1. Log in to e-Services for Business.
2. From the Account Management Panel, select Close Account.
3. Enter the Closure Date.
4. Enter the Date of Last Wage Paid.
5. Select the Closure Reason.
6. Select Yes or No to the question, Would you like to change your address? then select Next.
7. Complete the declaration, then select Submit.

Worker Adjustment and Retraining Notification (WARN ACT)

Refer to the WARN Act for information and requirements related to plant closures and mass layoffs.

Unemployment Insurance Benefits

California employers are required to provide information about Unemployment Insurance (UI) claims for workers who become unemployed. To complete this requirement, you can provide the For Your Benefit - California’s Programs for the Unemployed (DE 2320) to your workers.

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

• Printed from Forms and Publications.
• Ordered using Online Forms and Publications.
• Picked up at your nearest Employment Tax Office.

If your employer payroll tax account was previously closed, but you recently paid wages in excess of $100 in a calendar quarter (or $750 for household employers), you can request to reopen your account as long as your reserve account has not been transferred. To reopen your account:

1. Log into e-Services for Business.
2. From the Account Management Panel, select Reopen Account.
3. Complete the online registration application, then select Submit.

Note: Allow three business days for processing. You can log in to e-Services for Business to check the status of your request.

If you purchase a business with former or current employees, you may be held liable for the previous owner’s liability with the EDD if you do not have the Certificate of Release of Buyer (DE 2220). For your protection, escrow funds should not be disbursed until the seller pays all amounts owed to the EDD and the DE 2220 has been issued. Once the DE 2220 is issued, you cannot be held liable for any of the seller’s unpaid state payroll taxes.

If you employ any of the former employer’s employees, the wages paid to these employees during the same calendar year are considered to be paid by you. Therefore, wages paid by the former employer in the current calendar year are applied to the taxable wage limits for Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability Insurance (SDI). In addition, these employees are considered new hires and should be reported to the New Employee Registry.

If you acquire all or part of another employer’s business, you can apply to receive all or part of the seller’s reserve account balance by completing a transfer of reserve account in e-Services for Business, or by completing an Application for Transfer of Reserve Account (DE 4453) (PDF). The transfer may immediately reduce or increase your unemployment insurance tax rate.

Note: There are time limits to qualify for a reserve account transfer. If you wish to apply for the transfer, do so immediately after you purchase a business.

For more information on reserve account transfers, refer to the Information Sheet: California System of Experience Rating (DE 231Z) (PDF) or contact our Rate Management Group at 1-916-653-7795.

For more help, contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.

If you are selling your business, and no longer have employees, you must submit your final tax return, wage report, payment and close your employer payroll tax account within 10 days of selling the business, regardless of the normal due dates. You can file, pay, and close your employer payroll tax account online with e-Services for Business. Refer to Closing Your Business Or No Longer Have Employees (Business Remains Open) section for instructions on closing your account.

The buyer should ask you for a Certificate of Release of Buyer (DE 2220). See our Requirements for Obtaining Certificate of Release of Buyer When a Business Is Sold (DE 3409A) (PDF), and complete a Release of Buyer Request Form (DE 2220R) (PDF) to receive the DE 2220. Until the DE 2220 is issued, the buyer must hold enough funds in escrow to cover all amounts that you owe to the EDD, up to the purchase price of the business. You will receive the DE 2220 after the full amount is paid. Payment must be made by cash, cashier’s check, money order, or escrow check.

The buyer may ask the EDD to transfer your business’s reserve account to the new ownership by completing an Application for Transfer of Reserve Account (DE 4453) (PDF). If you are selling only a portion of your business, the buyer may apply for a partial reserve account transfer. For more information about reserve account transfers, as well as the status of reserve accounts that are not transferred, refer to the Information Sheet: California System of Experience Rating (DE 231Z) (PDF) or contact the Rate Management Group at 1-916-653-7795.

Avoid Fraud

We actively look for and prosecute employers who participate in any tax evasion scheme, including SUTA dumping and UI rate manipulation.

We are dedicated to combating fraudulent activity and protecting benefits for legitimate California workers in need. For additional information, visit The EDD’s Response to Fraud.