Q. I’m a CA small business owner. What sort of documentation do I need to keep at my place of business?
A. The statutory record keeping requirements can vary depending on your entity type.
For corporations:
Adequate and correct books and records of account.
Minutes of the proceedings of shareholders, board and committees of the board.
Record of shareholders, giving the names and addresses of all shareholders and the number and class of shares held by each.
For LLCs:
Record of Members and holders of an economic interest in the LLC , in alphabetical order, giving (1) names and addresses, and (2) contributions and share in profits and losses.
Names and business or residence addresses of each manager (If applicable).
A copy of the articles of organization and all amendments thereto, together with any powers of attorney pursuant to which the articles of organization or any amendments thereto were executed.
Copies of the limited liability company's federal, state, and local income tax or information returns and reports, if any, for the six most recent taxable years.
A copy of the limited liability company's operating agreement, if in writing, and any amendments thereto, together with any powers of attorney pursuant to which any written operating agreement or any amendments thereto were executed.
Copies of the financial statements of the limited liability company, if any, for the six most recent fiscal years.
The books and records of the limited liability company as they relate to the internal affairs of the limited liability company for at least the current and past four fiscal years.
Of course, it is a good idea to maintain good records beyond the minimum statutory requirements. What can you throw away? Check out this great article, "Can You Trash All of Your Old Papers?" http://news.yahoo.com/s/fool/20090819/bs_fool_fool/rx23806.
Allen M. Lee Mr. Lee’s practice focuses on business, corporate and intellectual property matters, including the creation, protection and exploitation of intellectual property assets. He counsels clients on business formation, general corporate matters, trademark, copyright, trade secret, patent, licensing, internet and domain name issues, among other things. For more information contact: Allen M. Lee, a Professional Law Corporation, Tel: (650) 254-0758, Fax: (650) 967-1851, Email: allen@allenmlee.com, Internet: www.allenmlee.com.
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