What retention periods apply to tax-relevant documents for start-up founders?
February 4, 2024 | 40,00 EUR | answered by Karl Albrecht
Dear tax advisor,
I am Gerald Reuter and I am planning to start my own business in the near future. As I would like to inform myself in advance about all tax-related topics to be well prepared, I have a question regarding the retention of documents. I am aware that there are various tax-relevant documents that I, as a startup founder, must retain, but I am unsure about the exact retention periods.
Currently, I am working on developing my business idea further and planning the first steps to establish my company. Since I have no experience as a self-employed individual, I am concerned about how long I need to retain certain documents and whether there are specific regulations for startup founders. I want to ensure that I comply with all legal requirements and do not encounter any issues with the tax authorities.
Therefore, I would like to know from you what specific retention periods apply to tax-relevant documents for startup founders. Are there differences depending on the type of documents or the type of business? Which documents must I definitely retain and for how long? Are there any specific storage options or systems that you would recommend to keep track of everything?
I look forward to your expertise and thank you in advance for your help.
Sincerely,
Gerald Reuter
Dear Gerald Reuter,
Thank you for your question regarding the storage of tax-relevant documents as a new business owner. It is very important to inform yourself early on about this topic in order to avoid potential issues with the tax office. I am happy to provide you with detailed information on retention periods and which documents you should definitely keep as a new business owner.
First and foremost, tax-relevant documents must be kept for a retention period of 10 years. This means that all documents relevant for taxation must be stored for this period. This includes invoices, receipts, bank statements, contracts, payroll records, tax returns, and any other documents that provide information about your business transactions. It is important to keep all documents organized so that you can quickly access them in case of an audit by the tax office.
There are no specific regulations for new business owners regarding document retention. The same deadlines apply to all companies, regardless of their size or type of activity. However, it is advisable to establish a well-structured filing system from the start to keep track of everything. For example, you can create digital folders and sort documents by categories to easily find them again.
It is particularly important to keep all receipts for business expenses, as these are relevant for determining profit and thus for taxation. Contracts with business partners, employee contracts, lease agreements for business premises, and insurance policies should also be kept securely.
In addition to tax-relevant documents, you should also retain all documents relevant to the founding of your company, such as the articles of association, business registration, business plan, and financing documents. These documents may also be important beyond the 10-year period.
I hope this information is helpful to you. If you have any further questions or need assistance with starting your business, I am here to help.
Best regards,
Karl Albrecht
