Short Answer: Maintain organized legal, financial, tax, and operational records.
Why It Matters: Keep formation documents, governing documents, ownership records, contracts, insurance policies, tax records, licenses, employment records, and important meeting records organized. Good record keeping simplifies audits, financing, litigation, and selling your business.
Common Mistakes: Keeping records in multiple places; failing to back up electronic files.
Michelle's Bottom Line: Good recordkeeping is one of the simplest ways to reduce business risk.
