Hi
I found your website on a search and had a simple question. If as you say Corporations should have a different Fiscal year from the Calendar year what month should you choose?

I am starting an private NV LLC that will be used for Investing. What month would be appropriate?

Thank You

This first thing you should discuss with your personal tax advisor is how the LLC is going to be treated for tax purposes; which obviously depends on whether there are more members than just you.

If it is to be treated as a sole proprietorship (if you are sole member) or partnership or S corp (multiple members), you have no choice in the fiscal year. It must be from January 1 through December 31.

If you choose to have the LLC taxed as a C corp, a tax year ending other than December has several benefits, as I described on my website. There is no universally applicable best month. However, I have found June 30 to be the most useful since it gives six months on either side to make any adjustments between the personal tax year-end of December 31.

I hope this help. Do not proceed any further without the assistance of a competent professional tax advisor. Most decisions made at the beginning cannot be changed later on; so you need to make sure they are the best for your situation.

Good luck.

Kerry Kerstetter
(No relation to the French-looking anti-American currently running for President)

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 7/11/2004 08:46:00 PM Send this post: