Can I write off startup costs?
Business Formationstartup costsbusiness formationamortizationmarket researchlegal fees
Startup costs can be deducted up to $5,000 in the first year, with the remainder amortized over 15 years. Qualifying costs include market research, advertising, employee training, and legal fees. Costs incurred before the business begins operations are considered startup costs. Once the business is operational, these become regular business expenses. Keep detailed records of all startup-related expenses.