if you're stating that all the costs equipment, organization fees, etc in total cost less than $5000, it doesn't matter whether they're treated as start-up costs or something else. That's because IRC 195, which deals with start-up costs, allows you to expense 100% the first year if the total is less than $5000.01.
difference of opinion probably exist as to which of your costs would be start-up and which would be deemed post star-up
the state fees to register the LLC and the signage (maybe) to me would be start-up
annual state fees for the LLC would be licenses and taxes
the equipment would be expensed as small tools and equipment
painting as repairs and maintenance (maybe start-up)
the hair products as supplies.
This is from Turbotax
For example, if you’re opening a landscaping business and you buy a truck, typically you have to depreciate the cost. (There is a de-minimus exception for items costing less than $2500 - they can be expensed) Such expenses are treated just the same as they would be if you had been operating your business for decades.
Timing can be important
Timing matters, too. “Start-up costs are only deductible if your business does indeed start up,” says Capelli. “And they have to be incurred during the planning and development phase of your business. Otherwise, after that, they become operating expenses.” The flip side to this is that even though your business isn’t operational yet when you incur start-up expenses, you can deduct them or begin to deduct them in your first year of business.
