I would say it sounds like your business has "started."
You don't need to have earned money to have started the business. Compare your situation to a physical store. Once it's doors are "open for business", startup costs and all business expenses are deducted, regardless of income. Because your marketing plan is in affect and you are acquiring customers; I would say you are in business. It's part of your strategic plan to not charge for your services until you build an audience/traction.
I would recommend choosing whether you want to have "started" or not and then document your business plan and how this activity fits into your determination, showing you have started your intended business operations. As far as which is most advantageous, normally deducting expenses is more beneficial than startup costs, in the current year.
A business loss will offset all other income and can create a Net Operating Loss on your personal return. This loss can be carried back 2 years and then forward 20 years tax, which means you can immediately amend your prior two year returns to offset taxable income for refunds. Alternatively, you can elect not to carry a loss back and only carry it forward.
As for the difference between startup & organizational costs:
- Organizational costs are only costs related to forming a legal business entity
- Startup costs are costs that would normally be deducted as business expenses. All of your expenses listed look like start up costs, which would be deducted as business expenses if your business has started it's intended operations.
For more information on business expenses and startup & organizational costs (chapter 7), see IRS publication 535 Business Expenses here: https://www.irs.gov/pub/irs-pdf/p535.pdf
