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Business & farm
You can only deduct the fee if you include a schedule C for the LCC (if it is a disregarded entity) or you file form 1065 (if it is a partnership). It would be a business expense, you would show no income and therefore a business loss, and the IRS might question it, as mentioned.
It is not deductible anywhere as a personal expense, such as schedule A or form 2106.
‎February 25, 2021
11:48 AM