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Closing your RI Business or Non-Profit

Closing a business is a multistep process that will take you several weeks to months to complete. The following information is not intended as legal advice, these guidelines are provided to help you better navigate the filing process.

+ Step 1: Get Advice
Closing a business is a multi-step process. It is highly recommended that you seek professional help. Please seek the advice of an accountant and/or an attorney.
+ Step 2: Deciding To Close Your Business
Sole proprietors and general partnerships can decide on their own that they should close their business. If your business registered with this office, you and your co-owners must make the decision to dissolve the entity according to the guidelines established in your articles. Make sure to document all decisions.
+ Step 3: Comply With Employment and Labor Laws
State law requires that final paychecks are to be paid to employees within twenty-four (24) hours of their last day of work, (RIGL §28-14). If an employee has completed at least one year of service, then holiday pay, vacation pay, and insurance benefits are to be paid within twenty-four (24) hours of their last day of work.

The Warn Act is a federal law requiring employers of 100 or more full-time workers to give 60-days advance notice of a plant closing or mass layoff. This federal law applies to employers in the State of Rhode Island.

  • Employers with 100 or more full-time workers are affected if:
    • They close a facility or discontinue an operating unit with 50 or more workers; or
    • They lay off 50-499 workers and these workers comprise at least 33% of the total workforce at a single site of employment; or
    • They lay off 500 or more workers at a single site of employment
The law requires that this notification be given to the appropriate local chief elected official, the Dislocated Worker Unit of the State Department of Labor, and the collective bargaining representative of affected employees or each employee if the employees do not have such representation.
+ Step 4: Resolve Financial Obligations
Business Debts:
  • Notify all lenders and creditors of your plans to dissolve the business and settle remaining debt. If you are unable to pay your debts, you may want to consider filing for receivership or bankruptcy protection.
  • Contact the business’ creditors. It’s a good idea to discuss your financial obligations with your accountant, attorney, and insurers to ensure that you have everything accounted for.
  • You may need to close out your business bank account(s) and cancel your business credit cards. Consult your accountant or attorney prior to closing any account(s)

Steps to closing a business vary depending on entity type. After completing the steps above with the help of your attorney and/or accountant, select the entity type below to see remaining filing requirements:

Choose your Entity Type

RI General Partnership | Sole Proprietorship
RI Limited Liability Company
RI Business Corporation
RI Non-Profit Corporation
RI Limited Partnership
RI Limited Liability Partnership