As a business, you can choose to either file for a calendar year or a fiscal year. But what exactly is the difference?
Intuit shared the following in their post "Should You Adopt a Fiscal or Calendar Year for Your Small Business?"
Calendar Year - Starts Jan 1 - Ends Dec 31
The IRs requires you to file based on a calendar year if the following are true:
Fiscal Year - Any 12 month period that doesn't start in January or end in December
This is a good way to file if you're a seasonal business. A Calendar year would cause you to have to split your season.
To read more about the differences between Calendar and Fiscal Years, check out "Should You Adopt a Fiscal or Calendar year for Your Small Business"
You must use the same tax year for both your business and nonbusiness income.
For example, if you report your business income on a fiscal year, you must report your nonbusiness income on a fiscal year.