How long to keep business records after closing business

As a business owner, you likely have various documents in storage, such as tax returns, personnel records, and bank statements.

Unfortunately, no single, steadfast retention rule applies to all kinds of records, meaning you need to categorize your files and create a document retention policy (DRP).

Once you know what types of records you have, it’s time to determine how long to keep tax returns, statements, and other documents.

What business records should be kept permanently

Below, we’ll go over legal retention requirements and best practices for records not covered by federal or state laws.

Federal record retention guidelines: Who regulates recordkeeping?

Several federal agencies have document retention requirements.

The guidelines may vary depending on your industry and circumstances. Understanding which categories apply to your company is essential to know which documents to keep.

In general, the following laws, acts, and agencies require record retention:

• The IRS.
• The Federal Insurance Contributions Act (FICA).
• The Americans with Disabilities Act (ADA).
• The
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