According to IRS publication 535;
'Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized."
Once you begin reporting income, then you can take $5,000 of the start up costs as business expense and the rest are amortized under Assets/Depreciation for your business.
IRS pub 535
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