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Can education expenses be used in start up costs

 
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3 Replies

Can education expenses be used in start up costs

No, expenses to learn a new trade or job or to qualify for a new career aren't deductible.

Start up cost include:

  • legal and accounting fees
  • licenses, permit, and other fees
  • the cost of investigating what it would take to create a successful business, including research on potential markets or products
  • advertising costs, including advertising for your business opening and creating a business website
  • office rent and utilities paid before the business begins operating
  • rental of business equipment such as computers and office supplies
  • costs for employee training before the business opens, and
  • expenses related to obtaining financing, suppliers, customers, or distributors.

See Startup Expenses Examples

https://www.mileiq.com/blog/business-startup-costs-deduction/


cduzan
New Member

Can education expenses be used in start up costs

If the company is an LLC, would education of the members not count as employee training? I'm genuinely curious because I am in this situation now. My wife and I are starting a business and we have spent a decent amount of money in educating ourselves in the field we are entering (neither of us are classically trained in this field).

Can education expenses be used in start up costs

Ok now we need to talk about "employees" ... if this multimember LLC is being taxed as an S-corp  and you are paying wages to the employees and filing proper payroll tax reports then yes it could be a deduction for the S-corp.    So are you filing a Partnership or S-Corp return ?    I highly suggest you seek local professional assistance to be educated on which business entity would be best for your situation and  learn of the required  fed/state filings that go with it.  

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