Recordkeeping for Business Owners

Owning a business requires longer record holding periods.  The years vary depending on the type of document, but as a safe measure keep them for 10 years. Recordkeeping for business owners is an important piece of keeping yourself safe from being caught off-guard.

As a reminder, electronic documents are only good if you can put your hands on them.

If you are saving them on a computer, make sure there is a backup.

Below is a list of records a business owner should keep.

• Business Tax Returns and supporting documentation.

• Payroll Records – Timesheets, Payroll Summaries, Tax Payment Receipts, Benefit Payments.

• Employee Files – The holding period begins when the employee leaves. 

We also recommend keeping a storage box for permanent documents.  Items to include:

• Business Documents – Business formation paperwork, operating agreements, by-laws and any changes that you have made with the IRS and Department of State.  If dissolution has occurred, keep this paperwork as well.

• Annual Meeting Minutes – If you are required to hold annual meetings, make sure to keep all years of minutes. 

• Owner Basis – Basis is a calculation that carries from one year to the next, identifying the amount you have invested in the company.  The calculation starts from day one of ownership and is calculated annually.  Basis helps to determine how distributions and losses are taxed.  We suggest keeping a ledger of all funds you invest and withdrew from the company. If K-1’s are applicable, keep these as well.