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?

[nicolerbright]

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?

[WillK · Accepted solution]

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.