How Long Should Business Records Be Retained?

Retention Period for Records

The period of time for retaining records depends on the type of record and to what it pertains. Tax and accounting records should be retained for seven years. Retain tax returns and financial statements permanently. Keep contracts, meeting minutes, bylaws and ownership agreements permanently. Keep employment records for the period of employment plus seven years, home improvement and investment records for the period of ownership plus seven years. Keep real estate records permanently.

Indefinite Retention Period

With modern electronic retention methods there is no reason why most records cannot be stored permanently on electronic media. When in doubt, retain the records indefinitely.

Bottom Line

Some records should be retained permanently and some records can be disposed of after a period of time. Electronic storage records make it easy to store documents indefinitely. When in doubt, play it safe and retain your records.

References

• Humter Group: Business Records Retention
• AccuShred: How Long Should You Keep Certain Records? Record Retention Schedule
• Tax Guide Complete Tax: How Long Must Your Records Be Kept?