The records should make each person’s contribution and lawful funding path understandable.
Identify ownership and transfers accurately
Shared family documents may be relevant, but they should not obscure which funds belong to or are lawfully available to each investor. Do not impose an invented requirement that all legitimate funds originate in separate personal accounts.
Bank statements and invoices proving the capital was spent in the business, annual tax returns and financial statements, and a payroll file for every employee with Form I-9, wage reports and hours, together with the family’s residence and travel records. Expect to provide financial statements covering the period in which the funds accumulated, corporate tax filings, the resolution authorizing any dividend or distribution, and banking records showing the movement. Prepare the parent for this early and gather what exists: statements showing accumulation, records of any asset sold, tax filings for the relevant years, and the transfer itself. Useful material may include ownership registers, sale contracts, tax filings, bank statements, invoices, payroll summaries, audited statements, probate records, and letters from institutions that maintained the records. Build a chronological funds record from original acquisition to the enterprise investment, preserving tax records, sale agreements, employment records, gifts, loans, bank statements, and transfer confirmations as applicable. Where funds come from a second source, that source needs the same treatment, so a matrimonial property settlement is evidenced by the separation agreement or court order and by the transfer records, not by an explanation.