- Agency
- Missouri Division of Employment Security
- Paperwork
- Notice of the sale and account updates for both sides; the division decides whether the buyer is a successor employer
- The clock
- Raise it before closing, so wages, rates and any balance are clear when the buyer starts payroll
Watch for: Leaving the account in limbo. If the division treats the buyer as a successor, the seller's history can affect the buyer's rate, and any unpaid balance becomes a negotiating point.
What a successor employer is
Missouri's employment security law treats a person who acquires a business as a successor in certain cases. The law covers voluntary sales as well as other transfers.
When the division finds a successor, it recalculates the contribution rate using the combined experience of the old and new employers.
Why the rate matters
An employer with few past claims pays a lower rate than one with many. A buyer who takes over a company with a poor record may inherit a higher rate, while one who buys a clean record may benefit.
That is why a buyer asks about claims history and why you should pull your own account before listing.
What the division decides
The division makes the successor determination, not the parties. In reported disputes, the division has found a buyer stood in the seller's position and an appeals body agreed. You cannot assume the answer from the deal paperwork alone.
Ask the division how it handles your type of sale, and get answers in writing where you can.
Settle the account before closing
- File every quarterly report and pay what is due
- Report final wages through the closing date
- Agree who answers claims for pre closing employees
- Tell the division the sale date and the buyer's name
What the buyer will ask
Expect the buyer to request your account number, recent rate notices, claims history and proof that reports are current. A buyer may also ask for a promise that you will pay any balance found later.
Employees and the transition
Employees do not automatically move to a buyer. Staff who stay are usually rehired on the buyer's payroll, and the dates should line up so no one is left without pay. Tell staff close to closing, not months before.
If you have no employees
A company with no payroll may still hold an account from an earlier year. Ask your CPA to confirm its status so an old account does not generate notices after the sale.
Record the date you notified the division and keep any confirmation it sends.
Related steps
State sales tax is a separate account, covered in tax clearance and successor liability. If you plan to end your LLC, read articles of termination. Care companies should also see selling a home care agency. Then see what your company is worth.
This page is general information and not tax or legal advice. Confirm the process and timing with your CPA, your attorney and the Missouri Division of Employment Security.