How long do I need to keep business records?

There is no universal number, and any source that gives you one is oversimplifying. How long you must keep a record depends on what kind of record it is and which laws and regulations apply to your organization. The right approach is not to memorize retention periods but to build a retention schedule that captures them.

It depends on the record type

Different records carry different requirements. A few common patterns illustrate the range:

• Tax and financial records are often kept for around seven years, reflecting audit and statute-of-limitations periods — but this varies by jurisdiction and circumstance.
• Employment and personnel records have their own retention rules, some extending years beyond the end of employment.
• Permanent records — those with enduring legal or historical value — are never destroyed; they are preserved indefinitely or transferred to an archives.
• Routine administrative records may only need to be kept a year or two.

Where the requirements come from

Retention periods are set by statutes, regulations, and contractual obligations, supplemented by operational need. For U.S. federal agencies, the National Archives publishes the government-wide General Records Schedule covering many common record types, and agencies schedule the rest with NARA. Businesses derive their periods from tax law, employment law, industry regulations, and litigation considerations.

The right way to answer the question

Rather than asking “how long do I keep records?” in the abstract, build a records retention schedule:

1. Inventory the record types you hold.
2. Research the legal, fiscal, and operational requirement for each.
3. Set a retention period and final disposition for each type.
4. Get it approved and apply it consistently.

A word of caution

Keeping records longer than required is not a safe default. Over-retention raises storage costs, increases the volume of material subject to discovery in litigation, and expands your exposure if there is a data breach. The goal is to keep records exactly as long as you are required to — no more, no less — and then dispose of them defensibly under a documented schedule.