Benefits of Keeping Records

Keeping corporate records may seem like a chore, but it can help should the corporation become involved in litigation. The IRS also requires a corporation to save certain records.

Companies should take care to keep corporate records separate from all other records, in a secure and easy to access place. If an officer or a shareholder is involved in more than one corporation, the documents for each corporation should be kept separate.

There are no federal laws stating how long corporate records must be kept, other than records used for taxes. Companies must keep those records pursuant to IRS regulations (usually documents for depreciation).

Companies should keep the following documents:

• Corporate contracts
• Leases
• Shareholder and Board of Directors' meeting minutes 
• Other transactional documents

A corporation's officers can keep the documents in any manner, but they should at least file them in such a manner that any certain document can be easily found when needed.

You can find documents that are appropriate for your business by taking Rocket Lawyer's free Business Legal Check Up.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.