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HangginAround
February 23, 2022
Solved

Optimizing deductions and whether to add legal fee under start up cost vs business expense?

  • February 23, 2022
  • 1 reply
  • 0 views

Hi,

I opened a new S corp in 8/2021 and paid $1500 in legal fees in 10/2021. Does it matter if I put this fee as start up cost vs business expense?  I'm curious if this makes a difference in deductions.  Thanks!

Best answer by ZoltanB45

Does not make a much of  difference but 2 things to consider

  1. Lawyer organized the business so it wasnt legal fee-organizational cost
  2. It happened prior to legally having a business to deduct expenses

Enter it as an organizational or start-up cost.

1 reply

Z
ZoltanB45Answer
February 23, 2022

Does not make a much of  difference but 2 things to consider

  1. Lawyer organized the business so it wasnt legal fee-organizational cost
  2. It happened prior to legally having a business to deduct expenses

Enter it as an organizational or start-up cost.

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