Small business records move and storage costs

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Hayden
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Small business records move and storage costs

Post by Hayden » Thu Nov 14, 2019 10:06 am

I have a storage locker filled with business records for which I pay $70/month. I am now contemplating moving to another state. Using a full-service moving company, it will cost about $1000 to move the records. The records will have to go back into a storage unit in the new state.

I’m looking for any advice on how best to handle this.

1. Cheapest way to move the records. The records are in bankers boxes, clearly labelled. E.g., payroll records, tax records, HR records. Because of the labels, I would think they would make an attractive target for an unscrupulous person.

2. My company may not have any revenue in 2020 and later years. But, I have an ongoing requirement to store the records. How does the IRS view this? Are they accustomed to seeing small businesses showing losses each year for 7 years, to deal with ongoing records storage costs?

JGoneRiding
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Re: Small business records move and storage costs

Post by JGoneRiding » Thu Nov 14, 2019 10:13 am

Not sure about the IRS but my advice would be to scan and destroy

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Hayden
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Re: Small business records move and storage costs

Post by Hayden » Thu Nov 14, 2019 10:24 am

JGoneRiding wrote:
Thu Nov 14, 2019 10:13 am
Not sure about the IRS but my advice would be to scan and destroy
Yes, agreed, but it is astonishingly time consuming. I have started to do this, but I don't have the time (or energy) between now and the projected move to scan all the records.

BuddyJet
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Re: Small business records move and storage costs

Post by BuddyJet » Thu Nov 14, 2019 3:34 pm

When we closed down our business, my decision was to leave the records where they were and just pay the rent for the 7 years and trash it at the end.

Since you are moving to another state, it might not make sense unless you have other reasons to return to the storage location.

If distance is too far, I'd try culling the records as best you can and move the rest.

Our accountant said storage cost post sale wasn't deductible since the business was closed but YMMV.

Jack FFR1846
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Re: Small business records move and storage costs

Post by Jack FFR1846 » Thu Nov 14, 2019 3:51 pm

Can you sell the business along with the responsibility to store these records?

My parents did exactly this. Any records beyond the required storage date were shredded.
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HomeStretch
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Re: Small business records move and storage costs

Post by HomeStretch » Thu Nov 14, 2019 4:01 pm

Do you have to access the records? If not, rather than paying $1k to move perhaps you might continue to use same storage service. At the end of 7 years, discard what’s there.

Alternatively can you rent a truck and load/drive them yourself to the next state?

Lee_WSP
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Re: Small business records move and storage costs

Post by Lee_WSP » Thu Nov 14, 2019 5:43 pm

Hayden wrote:
Thu Nov 14, 2019 10:24 am
JGoneRiding wrote:
Thu Nov 14, 2019 10:13 am
Not sure about the IRS but my advice would be to scan and destroy
Yes, agreed, but it is astonishingly time consuming. I have started to do this, but I don't have the time (or energy) between now and the projected move to scan all the records.
You can hire a company for possibly less than the moving costs to do it for you.

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Taz
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Re: Small business records move and storage costs

Post by Taz » Fri Nov 15, 2019 7:12 am

I would revisit scanning the records and hire a temp for 1 to 2 weeks. The ongoing storage costs over 7 years ($840/year x 7 years) plus transportation and the cost of having a shredding company destroy them in 7 years will likely be at your personal expense.

The company where I work is moving offices and just got rid of 9 years of paper invoices and documentation since they were already scanned into our billing system.
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