92. Tax Returns of Principals for the Past Three YearsBy Roger Bryan
The tax returns of the principals for the last three years will give an accurate indication of their taxable income and/or losses and a rather detailed explanation of any expenses inccured during that tax period. Most often, the 10-40 statement will provide a clear representation of this information.
These documents prove the financial security of the principals of the company and gives a somewhat objective indication of their riskiness as an investment to possible investors.