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Q&A What type of startup costs can I write off on my company’s income taxes?

Clarifying Questions

Q: What type of startup costs can I write off on my company’s income taxes?

—Tax Savvy CEO
A: Dear Savvy:

According to the IRS, there are three categories of startup expenses that are eligible for deductions: expenses for creating your business, expenses for launching your business, and expenses for organizing your business. Each category consists of different types of costs, including the following:

Creating your business: These expenses include activities associated with researching your business concept and finding a location. Expenses in this category might include consumer surveys, feasibility studies, market research, and travel expenses to potential business sites.

Launching your business: These are costs incurred while getting your business up and running and include things like recruitment and training your team, selecting vendors, advertising, and professional fees, as our legal fees.

Organizing your business: You can write off costs associated with creating your business entity, which might include filing fees, legal fees, accounting fees, and expenses for holding organizational meetings.

A Family Business Lawyer™ can help you identify and allocate your startup expenses to maximize the tax savings available to your new business. Contact a Family Business Lawyer™ today to get started.

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