Year-End Date Selection
The selection of your year-end date will determine when corporate taxes need to be filed and paid.
| Month of Year-End | Corporate Taxes Due 3 months later | Filing Deadline 6 months later |
|---|---|---|
| January | April | July |
| February | May | August |
| March | June | September |
| April | July | October |
| May | August | November |
| June | September | December |
| July | October | January |
| August | November | February |
| September | December | March |
| October | January | April |
| November | February | May |
| December | March | June |
| Caution: | Arrears interest on unpaid balance after this date | Penalties monthly on unpaid balance after this date |
Factors to Consider When Selecting a Year-End
What is the business cycle of your operations?
- Avoid dates that would add to your stress during peak demand periods.
How does the cash flow of your business compare to when the taxes are due?
- Select a year-end date such that you can expect to consistently have positive cash flow three months later.
- For instance, a retail operation may consider a September year-end because the Christmas season will always provide cash flow to cover any taxes due from the September year-end.
What is the availability of your tax professional?
- Consider selecting a year-end so that your three-month deadline will not conflict with your tax professional's personal income tax rush.
- You might choose a year-end other than December through February for this reason.
- You want to be sure you are not contributing to their stress and that they will have all the time you need of them when you need them.
Are there tax deferral opportunities available based on the year-end date?
- Depending on whether you intend to pay yourself through wages, dividends, or both, there are tax planning opportunities that could defer or save you taxes. Talk to one of our Professional to review your options in this regard.
Are there other related corporations under your control and management?
- The year-end date of an existing business may influence your selection of the year-end date for any new corporation you start up.
Year-End Date Selection
The date selected for the corporation's year-end will affect you for the life of your business and should not be chosen lightly.
Talk with one of our tax professionals to discover what will work best for you!
Contact Us