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nicolerbright
New Member

My husband set up a single-member LLC this year that didn't earn any income. Can we deduct legal fees paid to establish the LLC?

He's decided not to pursue the business any further at this point, so it won't be earning any income in the foreseeable future. We'll report a loss because he also paid a contractor to do some work for the business, correct?

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WillK
Level 9

My husband set up a single-member LLC this year that didn't earn any income. Can we deduct legal fees paid to establish the LLC?

If there was no income but expenses, then a loss would be reported on a Schedule C. You can expense the  legal fees that were spent to set up the LLC. It would go under legal and professional fees. 

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WillK
Level 9

My husband set up a single-member LLC this year that didn't earn any income. Can we deduct legal fees paid to establish the LLC?

If there was no income but expenses, then a loss would be reported on a Schedule C. You can expense the  legal fees that were spent to set up the LLC. It would go under legal and professional fees. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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