Escrow services

escrow and selling a business

When you buy and sell a house in California, the formal part of the transaction after the negotiations are complete is the escrow process. During escrow, a third party that is independent of the buyer, seller, lender, real estate agent, and any other parties in the transaction processes the paperwork to ensure the ownership of the house correctly and cleanly moves from the ownership of the seller to the buyer. The role of the escrow company is to protect all the parties.

How escrow works when you sell a business or buy a business in California

If you buy or sell a business the same logic applies though the parties will be a little different. The normal parties are present such as the buyer and seller but they may include new parties such as the business broker, third-party lenders such as a bank or SBA lender, creditors that may be owed money, a franchisor, a landlord, and perhaps an accountant, attorney or another party that is owed money.

Escrow for California business sale

The escrow process when buying a business or selling a business has many moving parts. There are many forms and disclosures to make as the ultimate goal is to prevent those who are owed money from losing it and to make sure the title to assets transfers free and clear, and correctly. To help explain the escrow process when selling a business or buying a business, a 97-page guide is available for you to use and download. If you would like a copy as a PDF file, please click the following link: Escrow and a business sale.

Escrow process for the sale of a business in Northern California.

The guide is full of information about the escrow process if you plan to sell a business or buy a business in Northern California. It provides specific information for Sacramento County, Placer County, El Dorado County, Yolo County, Yuba County, and Sutter County. It also provides information from the California State Board of Equalization, California Employment Development Department, the California Department of Alcoholic Beverage Department, and of course the Internal Revenue Service or IRS. The Table of Contents alone is over 2 1/2 pages and includes

  • What is a Bulk Sale and how it affects both buyer and seller
  • The Purchase Price Allocation
  • Unsecured property taxes
  • Franchise transfer fees
  • Security deposits and lease assignments
  • Alcoholic and Beverage Control
  • Employment Development Department
  • State Board of Equalization
  • Local county tax collectors
  • Business license application
  • and so much more

Please click the following link – Escrow and a business sale if you would like a copy of this PDF.



    5150 Fair Oaks Blvd, #101-198
    Carmichael, CA, 95608-5788


    Phone: (916) 570-2674
    Fax: (916) 473-8655


    Buying or selling a business is a complex process – and you shouldn’t go through it alone. You need an experienced business broker to guide you through the process.

    We make buying and selling businesses simple and straightforward. We’re qualified to handle the most complicated aspects on behalf of our clients, ensuring you walk away satisfied.