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PRIVATE BUSINESS SALE PREPARATION

California DE 2220R for a Business Sale

This California DE 2220R for a Business Sale resource from Long Beach Business Brokers Ltd helps you prepare for your next sale conversation.

California payroll tax clearance is a separate closing question from sales tax clearance.

The EDD uses a Release of Buyer Request Form, DE 2220R, in the process for obtaining the DE 2220 certificate.

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A business owner and adviser discuss sale records in a sunlit office.

Know the request and the certificate

DE 2220R is the request form. DE 2220 is the Certificate of Release of Buyer. Keep the names distinct when your escrow agent or buyer asks which document has been obtained.

EDD guidance explains that the buyer must withhold enough funds to cover the seller’s EDD amounts due until the certificate is issued, subject to the purchase-price limit described by the agency.

Prepare matching sale information

The request asks for buyer, seller, business and transaction details. Make sure the entity names, account information, purchase price and sale date match the deal records.

Ask the payroll provider and escrow agent who will complete the request, obtain missing details and follow up with EDD. Do not assume that submitting a request is the same as receiving clearance.

Coordinate the seller payroll closeout

If you sell and no longer have employees, EDD says final reporting, payment and payroll account closure are due within 10 days of the sale. Confirm the application to your circumstances with your payroll adviser.

Retain the certificate and final filings with the closing documents. This EDD process does not replace CDTFA clearance, local licensing or other transaction-specific requirements.