What records should a Maryland contractor keep?

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

1. ACommit to organizing everything now and implementing a proper record-keeping system going forward. Contracts, invoices, payments, permits, and insurance certificates should all be documented and accessible
   Correct

   Proper record keeping isn't just good business — it's your defense against MHIC complaints, tax audits, and legal disputes. You should maintain: copies of all contracts, change orders, and completion certificates; records of all payments received and made; permit copies and inspection sign-offs; insurance certificates; and subcontractor agreements. If the MHIC investigates a complaint from 2 years ago, you need to produce documentation. 'It's in my truck somewhere' doesn't cut it.

2. BYour accountant can figure it out from your bank statements — that's what you pay them for
   Insufficient

   Bank statements show money in and out, not contract terms, scope of work, or permit compliance. If a homeowner complains to the MHIC, bank statements don't prove you had a written contract. If a subcontractor claims non-payment, bank statements alone may not show what the payment was for. Professional record keeping is a business requirement and a license protection.