US state
Closing a business in California with employees
If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. California requires 60 days' written notice before the order takes effect. A limited liability company files a Termination - CA LLC for $0. California is not the same final-pay rule as Delaware.
| Fact | Detail |
|---|---|
| Final pay on termination | If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. California Legislature |
| Final pay on resignation | If an employee without a written contract for a definite period quits, wages are due no later than 72 hours after quitting, unless the employee gave 72 hours' notice, in which case wages are due at the time of quitting. California Legislature |
| Accrued vacation | Unless a collective-bargaining agreement provides otherwise, vested vacation under an employment contract or employer policy is paid as wages at the final rate when employment ends, and that contract or policy may not forfeit vested vacation. California Legislature |
| State WARN | An employer may not order a mass layoff, relocation, or termination at a covered establishment of 75 or more persons unless, 60 days before the order takes effect, the employer gives written notice. California Legislature |
| Dissolution form | Termination - CA LLC California Secretary of State |
| Filing fee | $0 California Secretary of State |
| Tax clearance | File all delinquent tax returns, pay all tax balances, including penalties, fees, and interest, and file the final return. California Franchise Tax Board |
| Franchise or annual report | Most businesses must pay a minimum franchise tax of $800 each year. California Secretary of State |
How to wind down a company in California: filing, fee and approvals
California Secretary of State lists Termination - CA LLC at $0 in Business entity frequently asked questions. File online at bizfile Online. File Termination - CA LLC, and also Election to Termination - CA LLC unless all members vote to dissolve.
California Secretary of State lists Termination - CA Corporation at $0 in Business entity frequently asked questions. File online at bizfile Online. File Election to Terminate - CA Corporation and Termination - CA Corporation, unless every outstanding share votes to dissolve, in which case only Termination - CA Corporation is required.
Dissolution filing in California
| Item | What the filing office states |
|---|---|
| LLC form | Termination - CA LLC |
| LLC fee | $0 |
| LLC how to file | File online at bizfile Online. File Termination - CA LLC, and also Election to Termination - CA LLC unless all members vote to dissolve. |
| Corporation form | Termination - CA Corporation |
| Corporation fee | $0 |
| Corporation how to file | File online at bizfile Online. File Election to Terminate - CA Corporation and Termination - CA Corporation, unless every outstanding share votes to dissolve, in which case only Termination - CA Corporation is required. |
File online at bizfile Online. File Termination - CA LLC, and also Election to Termination - CA LLC unless all members vote to dissolve. File online at bizfile Online. File Election to Terminate - CA Corporation and Termination - CA Corporation, unless every outstanding share votes to dissolve, in which case only Termination - CA Corporation is required.
Tax clearance in California
File all delinquent tax returns, pay all tax balances, including penalties, fees, and interest, and file the final return. California Franchise Tax Board
Most businesses must pay a minimum franchise tax of $800 each year.
California Franchise Tax Board states that rule in FTB Publication 1038, Guide to Dissolve, Surrender, or Cancel a California Business Entity.
California Secretary of State states that rule in Business entity frequently asked questions.
California Secretary of State puts $800 on Business entity frequently asked questions.
Employees in California: final pay and layoff notice
If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.
If an employee without a written contract for a definite period quits, wages are due no later than 72 hours after quitting, unless the employee gave 72 hours' notice, in which case wages are due at the time of quitting.
Unless a collective-bargaining agreement provides otherwise, vested vacation under an employment contract or employer policy is paid as wages at the final rate when employment ends, and that contract or policy may not forfeit vested vacation.
An employer may not order a mass layoff, relocation, or termination at a covered establishment of 75 or more persons unless, 60 days before the order takes effect, the employer gives written notice.
Coverage is 75 or more persons employed at the establishment now or within the preceding 12 months.
The notice period is 60 days.
Federal WARN, when it applies, uses 60 days' notice and an employer-size threshold of 100. The rest of the test is on the U.S. Government Publishing Office page.
Federal periods for keeping tax records are in how to wind down a company.
Compare final paycheck and WARN rules by state when you have staff in more than one state.
Read closing a business in Delaware with employees. Read final pay in Washington. Read New York dissolution fee.
Read how to tell employees the company is closing before the meeting.
Run a WARN check for a California employer against your headcount.
Build a closing checklist for California from the same rules.
See when canceled tools delete company records before you turn a tool off.
Read what each tool deletes when you stop paying for the vendor clocks.
After dissolution in California
Most businesses must pay a minimum franchise tax of $800 each year.
California Secretary of State states that rule in Business entity frequently asked questions.
California Secretary of State puts $800 on Business entity frequently asked questions.
The Termination - CA LLC fee is $0.
The Termination - CA Corporation fee is $0.
File all delinquent tax returns, pay all tax balances, including penalties, fees, and interest, and file the final return.
The filing office site is www.sos.ca.gov.
How California compares with Delaware, Washington and New York
A dash (—) is an empty cell. It is not a finding that no rule exists.
| State | Final pay on termination | State WARN notice | Dissolution fee |
|---|---|---|---|
| California | If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. | 60 days, 75 or more persons employed at the establishment now or within the preceding 12 months | LLC $0 |
| Delaware | If an employee quits, resigns, is discharged, suspended, or laid off, earned wages are due on the later of the next date wages would be paid through the last day worked under the regular pay cycle, or three business days after the last day worked. | 60 days, 100 or more employees, excluding part-time employees, or 100 or more employees who work at least 2,000 hours per week in the aggregate | LLC $220 |
| Washington | When an employee ceases work, whether by discharge or by voluntary withdrawal, the wages due are paid at the end of the established pay period. | 60 days, 50 or more employees in this state, excluding part-time employees | LLC $0 |
| New York | If employment is terminated, the employer shall pay the wages not later than the regular pay day for the pay period during which the termination occurred. If the employee requests it, those wages shall be paid by mail. | 90 days, 50 or more employees, excluding part-time employees, or 50 or more employees who work at least 2,000 hours per week in the aggregate | LLC $60 |
Termination - CA LLC is $0 in California. Certificate of Cancellation is $220 in Delaware.
California: If an employer discharges an employee, the wages earned and. Washington: When an employee ceases work, whether by discharge or by.
California state notice is 60 days. New York state notice is 90 days.
Termination - CA LLC is $0 in California. Articles of Dissolution is $60 in New York.
California: If an employer discharges an employee, the wages earned and. Delaware: If an employee quits, resigns, is discharged, suspended, or laid.
General information only. This is not legal, tax or financial advice.
Related
- Wind-down rules by US state
Final paycheck deadlines, state WARN notice, and dissolution fees for 51 US jurisdictions.
- Winding down
Order of operations to wind down a company, from approval through taxes and dissolution.
- Colorado
Final pay, state WARN, and the dissolution fee for Colorado.
- Connecticut
Final pay, state WARN, and the dissolution fee for Connecticut.
- Delaware
Final pay, state WARN, and the dissolution fee for Delaware.
- Delaware
Final pay, state WARN, and the dissolution fee for Delaware.
- Washington
Final pay, state WARN, and the dissolution fee for Washington.
- New York
Final pay, state WARN, and the dissolution fee for New York.
Questions about closing a business in California
How fast must a final paycheck be paid in California after a layoff?
If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. A LLC files Termination - CA LLC for $0. California is read beside Delaware, not as a copy of that neighbour. The labor department host is www.dir.ca.gov.
Does California have its own WARN Act?
An employer may not order a mass layoff, relocation, or termination at a covered establishment of 75 or more persons unless, 60 days before the order takes effect, the employer gives written notice. California Legislature states that rule in California Labor Code sections 1400 to 1401. A LLC files Termination - CA LLC for $0. California is read beside Delaware, not as a copy of that neighbour. The labor department host is www.dir.ca.gov.
Which California Secretary of State form cancels an LLC, and what is the filing fee?
California Secretary of State lists Termination - CA LLC for a California LLC. The filing fee is $0. Business entity frequently asked questions is the schedule that states $0. File online at bizfile Online. File Termination - CA LLC, and also Election to Termination - CA LLC unless all members vote to dissolve. A LLC files Termination - CA LLC for $0. California is read beside Delaware, not as a copy of that neighbour. The labor department host is www.dir.ca.gov.
Does California require tax clearance before dissolution?
File all delinquent tax returns, pay all tax balances, including penalties, fees, and interest, and file the final return. Follow that tax step before you rely on the dissolution filing in California. Your lawyer can match it to the entity you are closing.
What annual report or franchise tax still applies when a California company dissolves?
Most businesses must pay a minimum franchise tax of $800 each year. Read that note beside the dissolution fee, not instead of it. Ask your lawyer which report is still due for the entity you are closing in California. Do not treat the note as legal advice for your payroll.
Sources
- California Legislature. California Labor Code section 201. Checked 2026-11-04
- California Legislature. California Labor Code section 202. Checked 2026-11-04
- California Legislature. California Labor Code section 227.3. Checked 2026-11-04
- California Legislature. California Labor Code sections 1400 to 1401. Checked 2026-11-04
- California Secretary of State. Business entity frequently asked questions. Checked 2026-11-04
- California Franchise Tax Board. FTB Publication 1038, Guide to Dissolve, Surrender, or Cancel a California Business Entity. Checked 2026-11-04