New LLC and Franchise Fees

[gatorjab]

In 2023 we formed a LLC and bought a franchise. I understand the franchise fee is an intangible asset which has to be amortized over 15 years. ( unfor and hope i'm still alive at that time ) - goes under "business asset"? 

My question is around the tools purchased, advertising items, the monthly franchise fee, the monthly franchise marketing fee and such. 

Do those have to go under the business asset or under startup cost or business expense or ??? 

[ThomasM125]

The expenses you mention would be deductible in the first year you are open for business. If you incurred them in the year before you were open for business, they would be added together and called startup expenses that you could start deducting in the first year you are open for business. You can expense up to $5,000 of startup expenses in the first year if they total less than $50,000. The remaining startup expenses you have to amortize over fifteen years. Here is a link to an article that will tell you more:  Start up expenses