Fully functional isn't really defined by the IRS. I usually tell people that if you are building a store you aren't open until you unlock the door and start letting customers in. You have to make that analogy fir your business and decide on what day you actually unlocked the door.
And you have it exactly right. Startup costs can sometimes span years before a business actually opens its doors so you add those up. In the year that the business starts the 'Startup costs' are added up and turned into an asset that is amortized over five years. One fifth is deducted each year.
@1stimetaxdoer
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