I am filing for an EIN - Employer Idenitification Number and the application asksif I am on a fiscal or calendar year. What is the difference of filing for either type of calendar for tax purposes? Is one better than the other? By the way I am a registered LLC company in the state of California.
Thank you.
2007-02-18 04:40:36 · 4 answers · asked by crimsongraycoug 1 in Business & Finance ➔ Corporations
The only difference between a fiscal calendar, and a calendar year is in how you do accounting.
For Example if you use the Fiscal calendar, your accounting year could start in October, or the fourth quarter of the calendar year. Or, in any other quarter and it doesn't matter. While this would be your 1st quarter it is still the 2nd, 3rd, or 4th quarter of the calendar year. This really only matters for businesses that already have an established accounting policy based on the fiscal year.
If you are just starting the business save yourself some headaches and just use the calendar year. It makes taxes and accounting easier. A lot easier. I have started multiple corporations in my life and it has always been easier to just use the calendar year.
2007-02-18 04:47:46 · answer #1 · answered by jhedlind22 3 · 2⤊ 0⤋
Calendar Year Vs Fiscal Year
2016-12-11 04:11:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Fiscal Year Vs Calendar Year
2016-09-30 22:27:45 · answer #3 · answered by capel 4 · 0⤊ 0⤋
A fiscal calendar or fiscal year is when your year end is something other than December 31st. For instance, many retailers have a year end in June so that their peak earnings season is not right at the end of the year.
Also, manufactures and many retailers will use a calendar called 5-4-4 where each quarter consists of a 5 week month followed by two 4 week months so that data is comparable from year to year and quarter to quarter. You can find a copy of this calendar by searching for fiscal retail calendar online.
Unless you are running a seasonal business or have a need to compare financial data for exact periods, you should be fine using a calendar year. Also remember that as an LLC the earnings will flow through to your personal tax return which will be on a calendar year, so you don't want to create complications for yourself if you don't need to.
2007-02-18 04:49:41 · answer #4 · answered by Anonymous · 3⤊ 0⤋
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RE:
Calendar year vs. fiscal year, what is the difference.?
I am filing for an EIN - Employer Idenitification Number and the application asksif I am on a fiscal or calendar year. What is the difference of filing for either type of calendar for tax purposes? Is one better than the other? By the way I am a registered LLC company in the state of...
2015-08-18 01:14:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A calendar year is on a yearly basis, ending the last day of the year, whereas a business can choose another date in the year to
close a (fiscal) business year. I feel that being on a calendar basis is less complicated. You may want to ask someone in your state. Good luck.
2007-02-18 04:52:22 · answer #6 · answered by Jan C 7 · 0⤊ 0⤋
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2016-08-23 18:27:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋
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2016-07-28 08:44:38 · answer #8 · answered by Jeraldine 3 · 0⤊ 0⤋