Can I Write This Off?

Can I write off legal Zoom fees?

TL;DR

Legal Zoom fees can be deductible if they are ordinary and necessary business expenses.

Detailed Answer

Legal Zoom fees are deductible if they are directly related to your business operations. For example, fees for forming a business entity, such as an LLC or corporation, can be deducted as business expenses. However, if the fees are for personal legal matters, they are not deductible. It's important to distinguish between business and personal expenses to determine deductibility.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 17 for sole proprietors; Form 1120, Line 26 for corporations; or Form 1065, Line 20 for partnerships.

Real World Example

A freelance graphic designer uses Legal Zoom to form an LLC. The fees paid to Legal Zoom for this service are deductible as a business start-up cost on Schedule C.

Audit Risk & Documentation Tips

Keep detailed records of the Legal Zoom invoice and a description of the services provided. Ensure the expenses are clearly for business purposes. Maintain documentation that shows how these services are necessary and ordinary for your business operations to mitigate audit risk.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

Small BusinessEntrepreneursFreelancersStartups

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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