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.