The Advantages of Maintaining Records

Maintaining business records may be time-consuming, but it can be beneficial if the company is embroiled in litigation. Some documents must also be maintained, according to the IRS.

Maintaining corporate records may seem to be a hassle, but it may be beneficial if the organization is embroiled in litigation. The IRS also requires corporations to keep certain documents.

Businesses should take precautions to maintain corporate documents distinct from all other information, in a safe and easily accessible location. Whenever an officer or shareholder is engaged in more than one company, each business’s documentation should be maintained separate.

Except for tax documents, there are no federal requirements dictating how long corporation records must be preserved. Businesses must retain these data in accordance with IRS standards (usually documents for depreciation).

The following papers should be kept by businesses:

Leases for corporations
Minutes of shareholder and board of directors meetings
Additional transactional papers

Officers of a company may preserve papers in whatever manner they see fit, but they must at least file them in such a way that any particular document may be quickly identified when required.