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Level 3
October 27, 2022

Question on a corporate spin off

  • October 27, 2022
  • 1 reply
  • 6 views

I have a C-corp with a fiscal year ending 10/31 that is going to be doing a spin off to separate a portion of his business.  My question is this....can the new entity have a different year end than the parent company?  He would like to put the new entity on a calendar year end.  I have done tons of research but cannot find an answer to that question.  Any help is appreciated!  Thanks!

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    1 reply

    Level 3
    October 27, 2022

    Not sure enough information is provided.  However the answer might be simpler than …

    perhaps determining if new EIN is required will answer the question.  Does this help:

    https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

    regards.

     

    Level 3
    October 27, 2022

    Thanks for your reply.  I know that a new EIN will be needed for the spin off entity but I'm just unsure if the new entity needs to follow the parent company fiscal year end or not?