How Long to Keep Business Records in California

Business records should generally be kept for at least four years.

Analysis

General Business Liability
Claims for unfair or illegal business practices, essentially the violation of any statute, have a four year statute of limitations. As a result, even if a statute only requires that records be kept for a shorter period of time, the records should be kept for at least four years.

Written Contract Claims
The statute of limitations for breach of a written contract is four years.

Tax Audits
The State of California has four years to audit a tax return.

Sales Tax
The California Board of Equalization requests that records be kept four years.

Note: If fraud is involved or the wrongdoing is concealed, the potential statute of limitations for claims may be extended .

Disclaimer: This information is very general and may not apply to your business or industry. Some specific laws, such as for toxic exposures by employees, may require that records be kept up to 30 years or more.