Yes, a business can reimburse a business owner for start-up expenses if the owner has an accountable plan in place and the expenses are deductible.
Start-Up Costs are expenses that would be deductible by an existing trade or business and are incurred before the active trade or business begins.
Organizational Costs are expenses incident to the creation/formation of a business entity.
Up to $5,000 of Start-Up and Organizational Costs may be deducted as a current business expense. The amount in excess of $5,000 is amortized over 180 months.
