How long to keep closed LLC records?

[Stephen1]

We had an LLC in TX which has been terminated. While I expect to keep tax records for 7 years, I was wondering whether there is any requirement in TX to retain other material on the LLC such as the company agreement (and any amendments), minutes of meetings, or the Certificate of Termination. And, of course, if there is such a requirement, for how long.
Yes, I'm cleaning out file drawers and started wondering how much of this I need and for how much longer.
Thank you.

 

[adjusterjack]

A common sense approach would be to keep documents for as long as the statute of limitations is for particular issues.

4 years for contractual matters.
2 years for personal injuries.
2 years for other torts.
7 1/2 years for items to show up on your credit reports.
Up to 20 years for any judgment enforcement.
Traffic tickets and car registration records forever because when the state says you owe and it's 30 years from now and your license gets suspended you'll wish you had those records.

Of course, if you had been digitally archiving all your records contemporaneously, you wouldn't have to be concerned because they take up very little cyberspace and can stay on your computer and back up drives forever.

 

[LdiJ]

We had an LLC in TX which has been terminated. While I expect to keep tax records for 7 years, I was wondering whether there is any requirement in TX to retain other material on the LLC such as the company agreement (and any amendments), minutes of meetings, or the Certificate of Termination. And, of course, if there is such a requirement, for how long.
Yes, I'm cleaning out file drawers and started wondering how much of this I need and for how much longer.
Thank you.

Personally, I would keep everything for the full 7 years. I had an issue after closing an LLC that I owned about 5 years after it closed. I had all of the accounting records but I didn't have anything proving that I was the actual owner of the LLC and it was a frustrating mess.

 

[Stephen1]

Personally, I would keep everything for the full 7 years. I had an issue after closing an LLC that I owned about 5 years after it closed. I had all of the accounting records but I didn't have anything proving that I was the actual owner of the LLC and it was a frustrating mess.

Thanks. That situation is kind of like what I'm concerned about.

 

[adjusterjack]

Get yourself a multi-page auto document feeding scanner. Scan and save everything to your computer and a back up drive forever.

 

[LdiJ]

Get yourself a multi-page auto document feeding scanner. Scan and save everything to your computer and a back up drive forever.

I really like that idea, however it won't actually be "forever". It will be "as long as the back up drive is compatible with existing hardware". Most likely 10-15 years at best.

Our firm keeps records available for as long as they are compatible with hardware. Right now we can still access tax records from 2004 forward, but can only print 2007 forward. Our tech guy recently stated that new upgrades in hardware will put us back to just 10 years worth available.

 

[AlmostThere]

I really like that idea, however it won't actually be "forever". It will be "as long as the back up drive is compatible with existing hardware". Most likely 10-15 years at best.

Our firm keeps records available for as long as they are compatible with hardware. Right now we can still access tax records from 2004 forward, but can only print 2007 forward. Our tech guy recently stated that new upgrades in hardware will put us back to just 10 years worth available.

Back up offsite using a commercials service, such as Carbonite, Iron Mountain, OneDrive with backup, idrive, etc.

As an IT professional, I am going to say that you should be backing up all your personal data regularly anyway.

 

[LdiJ]

Back up offsite using a commercials service, such as Carbonite, Iron Mountain, OneDrive with backup, idrive, etc.

As an IT professional, I am going to say that you should be backing up all your personal data regularly anyway.

You don't understand the needs of our type of industry. Putting our records in the cloud would violate privacy requirements.

 

[Taxing Matters]

You don't understand the needs of our type of industry. Putting our records in the cloud would violate privacy requirements.

Not true. There are cloud services that can meet the privacy/confidentiality requirements for tax prep firms and for law firms, too for that matter. But you have to pick the service you use carefully and closely scrutinize the terms and conditions of the service used.

 

[LdiJ]

Not true. There are cloud services that can meet the privacy/confidentiality requirements for tax prep firms and for law firms, too for that matter. But you have to pick the service you use carefully and closely scrutinize the terms and conditions of the service used.

Well, my boss will never go for it. We have layers and layers of security.

 

[Taxing Matters]

Well, my boss will never go for it. We have layers and layers of security.

That's of course a choice for your boss to make. People have differing tolerances of risk and different comfort levels with new technology. I'm fortunate that my state bar association has a technology section that has screened a number of cloud services and provides recommendations of those that meet the confidentiality rules for lawyers, those that don't, and give info on what to look for in these services. And if it's good for law practice, it will meet my requirements under Circular 230 and the Code for tax practice, too. Without the help of the bar, though, it'd be real bear trying to determine which services are good to use.