The IRA withdrawal is subject to income tax and penalty, full stop. Anything you do with the money after that is a separate transaction that is not affected by the source of the money, whether an IRA withdrawal or busking in the subway. Assuming that you could deduct your entire $30,000 start up cost (you can't, but assuming you could) you would negate the regular income tax but you would still pay the 10% penalty.
For business start up costs, you can deduct a limited amount ($5,000) as an expense in the year you first have income. The rest of your start-up expenses may have to be amortized over 15 years. Equipment purchases are also subject to depreciation, and there are limits on the kinds of property and dollar amounts that are subject to section 179 accelerated depreciation. You really should get the advice of an accountant for proper treatment of purchases, start up costs, etc. and getting your business accounts set up to make you audit-resistant.
