It depends. If you were open for business (ready for customers and actively seeking them-whether or not you made any money) in 2025 and then got your LLC in 2026, yes, you would be able to deduct your expenses on your return. Your expenses would be based on the timing of you opening your business, not the date you formed the LLC. If you are a single member LLC, unless you elected to be treated as a S-Corp, you would file a Schedule C which is part of your overall tax return. This also means you will be subject to the 15.3% SE Tax so it may be a good idea to make estimated quarterly payments to avoid penalties.
If you were NOT open for business, and the expenses you incurred were all start up expenses, then no, you cannot deduct them on your 2025 return. You would include them on your 2026 return as start up expenses. You would not need to file a business return for the business expenses in 2025 if you were not opened for business and did not have any income.
You can deduct up to $5,000 in start up business expenses and $5,000 in organizational costs in the first year with the remaining expenses deducted over the next 15 years if your total expenses were under $50,000. Equipment such as a computer, desk, or things like tools would not be part of the start up costs, they would be listed as assets.
To do this in TurboTax, when entering your business profile, you will check the box that says you started the business this year. Then TurboTax will ask you about the expenses.
Taking Business Expense Deductions
Start-up Business Tax Tips
If you elected to be treated as an S-Corp, your income and expenses would be reported on an 1120-S, which can be done using TurboTax BUSINESS. This will generate either a K-1 or a W-2 which you will then enter on your personal tax return.
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