Organization Cost for Failed Single LLC

user17704343309 — Sat, 07 Feb 2026 03:55:50 GMT

I set up a single member LLC with the plan to buy a commercial building and occurred below expenses.

$155 for LLC registration paid in 2025

$500 attorney fee paid in 2025 to draft purchase agreement of the building

$1,950 environment site assessment fee paid in 2026; one of the prior tenants was dry cleaning, and mortgage require the environment site assessment.

In Jan 2026, I decided not to pursue the purchase because the environment site assessment result came back not as good as expected. Basically the single member LLC failed. Can I deduct any of above expense? If so, where to report and on what year return?

Thank you!

Re: Organization Cost for Failed Single LLC

MaryK4 — Sat, 07 Feb 2026 17:42:27 GMT

Yes, for a business that you decided not to "start", you can take a capital loss on the start up expenses in the year you abandoned the business. You will enter next year on your 2026 taxes under Investments and savings.

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Organization Cost for Failed Single LLC

Re: Organization Cost for Failed Single LLC