The rules of thumb:
- Papers that set up or own the business: keep them as long as the business exists.
- Agreements, policies and licenses: keep them while they're in force, and for years after.
- Tax records: at least 3 years after you file, longer in some cases.
- Employee records: it depends on the record, so use the rows in the table.
- Not sure? Keep it.
1. Find how long each kind of document is kept
Some of these periods are set by federal law; the rest are practical guidelines. Your state, your lender or your insurer may ask for longer (step 4).
| Folder | What it is | How long to keep it |
|---|---|---|
| Company | Formation papers, ownership agreements, the IRS letter with your employer ID number (EIN) | As long as the business exists |
| Licenses and permits | Business licenses, permits, certifications | While current. Keep old ones a few years in case someone asks when you were licensed |
| Agreements and subscriptions | Signed agreements, order forms, amendments, renewal letters | While in force, and for years after it ends. How long someone can bring a claim over a contract is set by each state, so ask your attorney or accountant for your state's number |
| Insurance | Policies and certificates | Current policies while in force. Keep old liability policies: a claim about something that happened years ago may fall under the policy you had then |
| Equipment and property | Purchase records, titles, warranties | Purchase records until 3 years after you file the tax return for the year you sell or get rid of the item. Warranties until they run out |
| Taxes | Tax returns and the records behind them | At least 3 years after you file. 6 years if you left out income worth more than 25% of what you reported. 7 years if you claimed a bad debt or worthless securities. If a return was never filed, keep the records for good. Keep copies of the filed returns themselves |
| Bank and loans | Statements, loan papers | Statements as long as the tax records they support. Loan papers until the loan is paid off, and the payoff letter for good |
| Bills and receipts | Paid bills, invoices, receipts, deposit slips | As long as the tax records they support: at least 3 years after you file |
| Employees | Payroll records | At least 3 years |
| Employees | Time cards and work schedules | At least 2 years |
| Employees | Payroll tax records (W-4s, tax filings) | At least 4 years after the tax is due or paid, whichever is later |
| Employees | Personnel files | At least 1 year after the record is made or the action is taken. If someone is let go, 1 year from that date |
| Employees | Form I-9 | 3 years after hire or 1 year after the person leaves, whichever is later |
| Employees | Injury and illness logs (OSHA 300), if your business has to keep them | 5 years after the end of the year they cover |
2. Count from the right date
Most of these periods start from something other than the date on the document:
- Tax records count from the day you filed the return, not the year the bill was paid.
- Payroll tax records count from when the tax was due or paid.
- I-9s and personnel files count from when the person leaves.
- Agreements count from when they end, not when they were signed.
- Property records count from the year you sell or get rid of the item.
When you file something, it helps to note the date its clock starts. An end-of-year folder works well for tax records: everything for 2026 goes in one place, and the whole folder's clock starts when the 2026 return is filed.
3. Keep everything tied to an open problem
Before you shred anything, check for a reason to hold on:
- A tax audit, or a letter from a tax agency.
- A lawsuit, or someone threatening one.
- An insurance claim that isn't settled.
- A dispute with a vendor, a customer or an employee.
- A discrimination charge from an employee. The EEOC requires related records to be kept until the charge, and any lawsuit over it, is finished.
Keep everything connected to it, even if its time is up, until the matter is fully over.
4. Check for rules that ask for longer
The IRS itself points out that your insurer or a lender may want records kept longer than it does. Before you settle on your own schedule:
- Ask your accountant how long they want tax records kept. Many keep them 7 years, which covers the longer IRS cases.
- Check your state. Some states set longer periods for payroll and employee records.
- Check your loan and lease agreements for anything they require you to keep.
This guide is general guidance, not legal advice. If you're unsure about a document that matters, ask your accountant or attorney before you shred it.
5. Get rid of things properly
- Shred paper with personal or financial information on it: Social Security numbers, bank details, pay records. Don't just throw it out.
- Don't forget the scans. If a document's time is up and you don't need it, the scanned copy can usually go too.
- Keep a short note of what you cleared out and when, like "2019 bills and receipts, shredded March 2027". If anyone ever asks, you can show it was done on a schedule.
6. Do it once a year
Pick one time each year, like right after taxes are filed, and clear out what's past its time. Done every year, it takes an afternoon. Left for ten years, it takes a week.
Why this happens
Different agencies set different clocks for the same paperwork, and each one counts from a different date. With no single answer, the easy choice is to keep everything forever or throw it all out, and neither one is right.
Last reviewed November 2026. General information, not legal or tax advice.