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Choosing the Best Corporate Year-End Date (Made Simple) #shorts

23 Sept 2025 · 1 min

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Bob Gauvreau explains how to choose a corporate year-end date. He states that from the date of incorporation you have 368 days to select a year-end, notes many people default to December 31, and recommends deferring the first year-end as long as allowed to push tax liabilities and reporting requirements further out (example: incorporate Aug 30 → choose Aug 31 the following year).

Questions this video answers

368 days

December 31

Choose August 31 of the following year as the corporation's first year-end.

Chapters

So the question is, how do we pick a corporate year end date? Now, we do have some options. When you get your business set up, really, which is incorporation, from the date that you incorporate, you have 368 days to choose a year end date. Now, typically people choose December 31st in many circumstances because it aligns with the calendar year. But I would typically advocate for people to push their first year end date out as long as possible. So, for example, if you get incorporated on August 30, I would argue that you should really defer your year end date to August 31st the following year. It pushes the tax liability, the reporting requirements out to the longest period possible versus incorporating August 30th and choosing December year end. Which just means the costs and requirements to file are going to be sooner. Your tax liabilities can be owed sooner.