Learning Center
How long should I keep records? 
  
The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or that the IRS can assess additional tax. The below information contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
You file a fraudulent return; keep records indefinitely.
You do not file a return; keep records indefinitely.
You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Are the records connected to assets?
Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition.  You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the bases of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition.

What should I do with my records for nontax purposes?
When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes.  For example, your insurance company or creditors may require you to keep them longer than the IRS does.

 
 

1-What is a corporation?
Corporation Definition:
The most common form of business organization, and one which is formed under  state law and given many legal rights as an entity separate from its owners.
Some of those legal rights are:
The corporation can open a bank account.
The corporation own property and do business,
A corporation is managed by a board of directors,

2-What is the Advantages of incorporation?
The Advantages of incorporation.
The most important advantage of incorporation is that it gives its stockholders limited liability. Since the corporation is a separate legal entity, its stockholders are protected from the debts and liabilities of the corporation.


3-How do I terminate (dissolve, surrender or cancel) my business entity?
The termination of  a corporation.
A domestic (California) or foreign (out–of–state or out–of–country) business entity can dissolve, surrender or cancel by filing the applicable form (as described below) with the California Secretary of State. The forms described below are available on our Forms, Samples and Fees webpage. Please refer to the applicable form(s) for complete filing instructions, fees, any additional requirements and relevant statutory filing provisions:


4-Can my business entity be its own agent for service of process?
THE agent for service of process.
A business entity cannot act as its own agent for service of process and no corporation may file a certificate pursuant to California Corporations Code section 1505 unless the corporation is currently authorized to engage in business in California and is in good standing on the records of the Secretary of State. 

5-How many Directors are necessary?
The number of Directors.
Generally, in most states a corporation is only required to have one director, however you are permitted to have more. Certain states base the required number of directors on the number of stockholders. If the corporation has 3 or more stockholders, then the corporation must have at least 3 directors. If the corporation has less than 3 stockholders, then the number of directors may be equal to or more than the number of stockholders. The states which have this rule are: CA, CO, CT, HI, LA, ME, MD, MA, MO, NY, OH, VT and UT.


6-Do we need to file the statement of information?
Statement of Information:
California law requires corporations, limited liability companies and common interest development associations to update the records of the California Secretary of State on an annual or biennial basis by filing a statement, as described below. 
Please refer to the instructions included with the form for complete filing information, applicable filing periods/due dates, fees required to file the statement, penalties for not timely filing the required statement, and statutory provisions.

7-Who can be such an agent?
THE agent for service of process.
An agent for service of process is an individual who resides in California, or a corporation, designated to accept service of process (court papers) if the business entity is sued. If a corporation is designated as agent for service of process, that corporation must have previously filed a certificate pursuant to California Corporations Code section 1505

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