Could the first fiscal year be shorter or longer than 12 months?


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Let's assume that I have a clothing store and I've started this business on January 1st 2021 so the fiscal year is ought to end on December 31st 2021. But there is one problem in my case which is that usually the first and last 2 weeks of year are busy weeks as you know because of Christmas and New Year.

So my question is Could the first fiscal year be shorter or longer than 12 months?

For example I end my fiscal year on January 31st 2022. So the next fiscal years start on February 2nd and end on 31st January.

Sorry for my bad English.
 
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That depends on the business type entity you operate.
A C corporation- one that pays income taxes on its profits - can elect any fiscal year it wishes, then must stick to it unless there are specific economic needs for changing - that will require completing a Form 3115 with IRS.
If your business is a partnership or SubChapter S corporation or an LLC, you must use a calendar year.
 

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