1) You would report your start-up costs in the year your business starts. This means you are actively marketing your business to customers and are ready to begin providing goods and/or services.
2) If your single-member LLC has not elected to be taxed as an S-Corporation, the activity is reported on Schedule C of your personal tax return. Again, you would first report on Schedule C in the tax year when the business officially opens.
If you have elected to be taxed as an S-Corp, you must file Form 1120S every year, whether it has taxable income or not. You will need TurboTax Business to prepare this business tax return. The due date for tax year 2024 was March 15, 2025.
If you have registered the LLC with your State, you may need to file partnership or corporation fees and/or taxes. Check with your State Comptroller's office for more information. You can find links here: State Departments of Revenue
3) There is no time limit for the accumulation of startup costs, which include expenses that would normally be deductible if the business was active, like Home Office expenses.
Up to $5,000 of startup costs paid or incurred can be deducted the first year if the total startup costs incurred don't exceed $50,000. An election can be made to amortize costs in excess of $5,000 over a period of 15 years. The IRS sets this rule -- you cannot choose a different amortization period.
See also: IRS Pub 583 Business Start-Up Costs
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