Here's How Long You Should Keep Your Business Tax Returns
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Why Should You Keep Your Tax Returns?
Documentation for Loans
In Case of an Audit
If You Want to Sell Your Business
How Long Is It Recommended That You Keep Business Tax Returns?
If you deduct the cost of worthless securities or bad debt, you need to keep your records for seven years. If there’s any chance you didn’t report all income that should have been reported (and it’s more than 25% of the gross income stated on your return), you need to keep your return for six years. If you don’t file a return (or file a fraudulent return), you need to keep your records forever – there’s no statute of limitations on fraudulent or unfiled returns, which means the IRS can come after you at any time.
Which Other Records Should You Keep?
Business Formation Documents
Employees' names, addresses, social security numbers, dates of employment, and occupation Wages, annuities, and pensions paid to employees with dates of payment Taxes withheld including FICA and Medicare Records of tips and fringe benefits paid if applicable to your business, and 1099 documents for independent contractors
Business Asset Records
Ledgers and registers Leases documents Loan documents Bank and credit card statements Insurance policies and records
Which Records Should You Keep Permanently?
Business formation documents Business licenses and permits Annual reports Shareholder meeting minutes Employer identification number Pension and retirement plan documents
Tips on Small Business Record Keeping
A business document scanner A cloud-based storage service A receipt app on your phone
3 Small Business Loan Tips
Generally, it can be easier for entrepreneurs starting out to qualify for a loan from an online lender than from a traditional lender. Lantern by SoFi’s single application makes it easy to find and compare small business loan offers from multiple lenders Traditionally, lenders like to see a business that’s at least two years old when considering a small business loan. SBA loans are guaranteed by the U.S. Small Business Administration and typically offer favorable terms. They can also have more complicated applications and requirements than non-SBA business loans.
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