Can you reimburse business startup expenses from before the LLC was formed?

[Stevenham15]

I'm curious if I am able to reimburse myself for expenses I paid for before the formation for the LLC, of items that were specifically for the business. Also, if so, are things like LLC filing costs something that would be in that category?

[NeilM7]

Yes, a business can reimburse a business owner for start-up expenses if the owner has an accountable plan in place and the expenses are deductible.

Start-Up Costs are expenses that would be deductible by an existing trade or business and are incurred before the active trade or business begins.

Organizational Costs are expenses incident to the creation/formation of a business entity.

Up to $5,000 of Start-Up and Organizational Costs may be deducted as a current business expense. The amount in excess of $5,000 is amortized over 180 months.

[ktran9]

The IRS refers to these as 'business start-up costs ', which are the expenses you incur before your business begins, and 'organizational costs ', which are the expenses you incur during the process of setting up your business.

https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes

Your LLC can elect to deduct up to $5,000 of business startup costs  and up to $5,000 of organizational costs paid or incurred in the first year of filing a return. The remaining costs must be amortized (spred out) any remaining costs over a 180 ­month period. Assuming your expenses are not over $50,000.

The LLC filing costs are examples of organizational costs.