In order to be able to accurately prepare and file tax returns, business owners must keep numerous kinds of records. These records can be used for tax preparation purposes and to manage the business. They also serve as proof of the business’s existence. According to the IRS, business owners must maintain records for six to seven years. But if you’re unsure about whether you need to keep certain records, here are some examples of what types of business records you should keep.
A company’s business records are generally organized into three types. Documents are organizational, which describes the nature of the organization. Organizational records detail who owns the business, including their voting rights and management. Organizational records include articles of incorporation, by-laws, operating agreements, shareholder and partnership agreements, meeting minutes, and any amendments to those documents. Business records can also be transactional. These documents are related to the activities of the business, and may include such things as contracts, real estate titles, and contracts with vendors and customers.
Business license indexes are generally kept by the business licensing agency of a city. These are usually located in the city treasurer or city clerk’s office. To find these records, all you need to do is enter the company name into the search bar. There are also counties that keep files for businesses that operate under multiple names. This is particularly helpful if you’re tracing the history of a particular business.