Your bylaws may dictate who can decide to close your non-profit and how to do so. Make sure to document all decisions.
State law requires that final paychecks are to be paid to employees within twenty-four (24) hours of their last day of work (R.I. Gen. Laws Chapter 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:
The law requires that this notification be given to the appropriate local chief elected official, the Dislocated Worker Unit of the RI Department of Labor & Training, and the collective bargaining representative of affected employees or each employee if the employees do not have such representation.
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 verify that you have accounted for everything.
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).
You must file the following forms with the RI Department of State in order to legally dissolve your non-profit.
Review the IRS Termination of an Exempt Organization if your non-profit is considered tax exempt.
NOTE: After submitting your document, be sure to confirm your filing.
Be sure to cancel all licenses and permits you will no longer need.
You may be legally required to maintain records, particularly tax and employment records, even after your non-profit has closed.