How many days after incorporation do you have to choose a corporate year-end date?

Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

Choosing Your Corporate Year End: Save Money & Optimize Timing! #shorts

12 Nov 2024 · 1 min

Watch on YouTube

0:55

Bob Gauvreau explains how to choose a corporate year-end date. You have 368 days after incorporation to pick one. Defer it as long as allowed, like incorporating Aug 30 and choosing Aug 31 the next year, to delay taxes and align with your business cycle.

Questions this video answers

368 days

Chapters

How do we pick a corporate year end date? 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. For example, if you get incorporated on August 30, I would argue that you should 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. So we like to push it out as long as possible. In the first year that you create your year end or your incorporation is formed, you get the opportunity to choose that year end, choose it wisely. Some of it again is going to be on deferring, the other is going to be strategic. Now when I say strategic, what I mean is that we would choose a year end date that would maybe align with our fiscal patterns of behavior in our business.