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Level 2
posted Jan 17, 2020 3:05:48 PM

Starting and Stopping a Business in same year

This happen to me.   I have all the receipts for the LLC and paid Delaware Tax even though I never opened.  Had to pay to remove the LLC and more Delaware Tax.  While it is not a lot of money I would like to claim it.  Is that proper?

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1 Best answer
Expert Alumni
Jan 17, 2020 3:35:37 PM

You may be able to deduct some of your expenses even though you never opened your business.

 

The IRS will allow you to deduct capital expenses you had in your attempt to start your business.  Capital expenses would include fees paid to the state or other taxing authorities to establish your LLC. 

 

You can not deduct any expenses prior to making the decision to start your LLC.  These expenses would include the costs for a general search or preliminary investigation into the possibility of establishing your LLC.

 

This link is to IRS Publication 535 Business Expenses that has information that you may find useful.

1 Replies
Expert Alumni
Jan 17, 2020 3:35:37 PM

You may be able to deduct some of your expenses even though you never opened your business.

 

The IRS will allow you to deduct capital expenses you had in your attempt to start your business.  Capital expenses would include fees paid to the state or other taxing authorities to establish your LLC. 

 

You can not deduct any expenses prior to making the decision to start your LLC.  These expenses would include the costs for a general search or preliminary investigation into the possibility of establishing your LLC.

 

This link is to IRS Publication 535 Business Expenses that has information that you may find useful.