Fiscal year election

Only a C corporation can elect to have a fiscal year that does not end on December 31st. However, it can elect to use the calendar year (January 1 - December 31) as its fiscal year.

Other entities, however, cannot choose a fiscal year even though it can offer tax advantages to its owners. In general, C corps that are personal service corporations (PSCs), partnerships, limited liability companies (LLCs) and Subchapter S corporations must use a calendar year for their fiscal period.