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HomeBusiness and Professions CodeDiv. 3Ch. 11.3Art. 3§ 7537 Family Business Continuation After Death

§ 7537 Family Business Continuation After Death

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
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§ 7537 Family Business Continuation After Death

Key Takeaways

  • •If a business owner dies, their family can keep running the business for 120 days if they tell the bureau within 30 days of the death.
  • •If the manager of a business quits or leaves, the business owner must tell the bureau within 30 days. The business can keep running for 90 days or up to a year if the bureau approves.
  • •If a partner in a business dies or leaves, the business must tell the bureau within 30 days. The business can keep running for 90 days.
  • •If you don’t tell the bureau on time, the business license can be canceled or suspended.

Example

A family-owned bakery where the owner suddenly passes away.

The owner’s son can keep the bakery open for 120 days if he tells the bureau within 30 days of his dad’s death. If he doesn’t tell them in time, the bakery’s license gets canceled right away.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7537 Family Business Continuation After Death

(a) In case of the death of a person licensed as an individual, a member of the immediate family of the deceased licensee shall be entitled to continue the business under the same license for 120 days following the death of the licensee, provided that written application for permission is made to the bureau within 30 days following the death of the licensee. At the end of the 120-day period, the license shall be automatically canceled. If no request is received within the 30-day period, the license shall be automatically canceled at the end of that period. (b) If the qualified manager ceases for any reason whatsoever to be connected with the licensee to whom the license is issued, the licensee shall notify the bureau in writing 30 days from this cessation. If the notice of cessation is filed timely, the license shall remain in force for a period of 90 days after cessation or for an additional period, not to exceed one year, as approved by the director, pending the qualification of another qualified manager as provided in this chapter. After the 90-day period or additional period, as approved by the director, the license shall be automatically suspended, unless the bureau receives written notification that the license is under the active charge of a qualified manager. If the licensee fails to notify the bureau within the 30-day period, his or her license shall be automatically suspended and may be reinstated only upon the filing of an application for reinstatement, payment of the reinstatement fee, and the qualification of a qualified manager as provided in this chapter. (c) In the case of the death or disassociation of a partner of an entity licensed as a partnership, the licensee shall notify the bureau, in writing, within 30 days from the death or disassociation of the individual. If notice is given, the license shall remain in force for 90 days following the death or disassociation. At the end of this period the license shall be automatically canceled. If the licensee fails to notify the bureau within the 30-day period, the license shall be automatically canceled. (d) A license extended under this section is subject to all other provisions of this chapter. (Amended by Stats. 2017, Ch. 569, Sec. 24. (SB 559) Effective January 1, 2018.)

Last verified: January 23, 2026

Key Terms

partnershiplicensedirectordeathcessationdisassociationapplicationqualification

Related Statutes

  • § 7582.23 License Continuation After Death
  • § 7525 License Application Requirements
  • § 7525.1 Business License Application Requirements
  • § 7525.2 Private Investigator Manager License
  • § 7526 License Applicant Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 7537.
View Official Source