start date for incorporation
If a company incorporated in February 2009, is it proper to consider all transactions, even those occurring in January in the same set of books?
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06/08/09 11:36am PDT
Viewed by asker 06/17/09 1:04pm PDT
Viewed by asker 06/17/09 1:04pm PDT
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PhoebeRoberts
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06/10/09 10:46am PDT
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Likely not. If the incorporation changed the type of return being filed, definitely not. So an entity taxed as a sole proprietorship, then incorporated as an entity taxed as something else, would need two sets of books: one for the sole proprietorship, and one for the something else.
If, however, you had an LLC-taxed-as-a-corporation, and in February did what's called a "formless conversion" under state law to a state-law corporation, that would be a situation where a new set of books wouldn't be needed (or appropriate).
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