While you may be able to use the 90 day rule, this does not allow you to take expenses from one year and move them to the next.
In most states though, you can make your LLC go into existence in the future (typically not more than 90 days ahead). This is most often referred to as using a “delayed effective date“. 90 day rule
Since your LLC actually opened in 2020 and you have expenses for 2020, it makes no sense to postpone the start date.
You can amortize start-up costs from a period from before the business opened and expenses after it opened. You can find this in the depreciation section.
- Intangibles, Other property
- Land Improvements
- Amortizable Intangible Property (such as mortgage points)
- Other Property
Start up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.
A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years).
Here is how it works:
Expenses paid or incurred after October 22, 2004:
- You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.
- You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.
- If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.
