Calendar vs Fiscal Year for LLC or S Corp? | what's the difference between fiscal and calendar year

Are you wondering if your small business should use a fiscal year or calendar year? In this video I define the "fiscal year" and "calendar year," explain the differences, and share when you'd pick one over the other.

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Legal Disclosure: Elizabeth is licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice – please seek advice of counsel. This video and description may contain attorney advertising.

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[lp]

Hello Elizabeth! 2553 form election date: can it be before formation of LLC?
Forming LLC in 10/22, however ran business since 01/22 (on 1099 income basis), could I elect "the date entity started business" (item E) as 01/22 (which is when I started doing business) and to avoid double taxation? Or can I only use the date of formation of my LLC (10/22) and then elect 2553 no later than 75 days afterwards and/or select 01/23 for the next year? Thank you!

[GlitzsGlam]

Thank you i appreciate you I turned on my notifications!

[LemonCrabHayward]

Hi Elizabeth, after you formed your business. How do you choose your fiscal year end? For example, if your business is formed on 9/1/22(I haven’t gotten the business license yet), should the fiscal year end 8/31? Please note that the business will start to sell food and services in 1/1/23. I am not sure if there is any implications choosing the FYE. Thank you

[charleswheat]

My wife and I moved from California to Texas we filed in California for E I N’s Do we have to file for a new one in Texas