Do I do "Start up" expenses or just use the Schedule C to deduct my self employment expenses this year?

[TuckerdogAVL]

I started asking about this in a separate post, but have learned a little more about how to describe what's going on, so maybe I can get some new advice:

I've taken expenses as a self-employed theatre performer and director for years. This year I spent a lot of money solo funding a theatrical production ie paid for costumes, props, and put in a lot of mileage/meals in addition to directing the production, advertising expenses, etc (about $4200), The show had rave reviews, I've booked another production (this year), and will use this to promote myself and my other plays I have written; So, I created an LLC to be able to collect licensing fees, royalties, and such. I worked as an independent contractor for fees and 1099s in the past. I've been 'round and 'round re: "Start up" expenses for this particular production, and I'm not sure whether it would be simpler just to take Schedule C expenses.  (Trying to figure out mileage and meals for Start up is really confusing me). There are additional expenses after the LLC formation as well, which I assume I would just take off on the Schedule C. I created the LLC using my name, so I can have Show1, Show2, Show3, for example, and they are under the umbrella LLC. And this year, I'm solo funding another project that is going to probably be $7000 in expenses; however, it could lead to good income for the rest of 2026 and 2027. And, of course, these would be legit expenses I would take off in 2027. So, my question is: Since I've been "in the business" for 40 years, do I just take the expenses as regular, good, old-fashioned Schedule C expenses, not worry about "Start up" (since they are under $5000 anyway) and keep track of income from various shows, productions, fees and such with the Schedule C stating the LLC? The only difference between all my Schedule C's in the past is now I'm an LLC with an EIN number. (no employees).  I tried calling for "expert" advice and the wait was very long (since we're getting close to the deadline). 

[AnnetteB6]

Based on the information you shared, it sounds as if you may need to file two Schedule Cs -- one as a self-employed performer/director and one for your LLC that was formed for producing.  If you did not work as a performer/director for 2025, then that Schedule C is probably not needed.  

If you will continue to work as a performer and your income will be paid to the LLC rather than to you personally, then a single Schedule C could work in the future.  

Since your startup costs are under $5000, they can be deducted on the Schedule C and do not have to be amortized or spread over a number of years.

[TuckerdogAVL]

It's more like a director/playwright collecting royalties vs producing. I called it solo producing so it wouldn't be confused with pro bono. The agreement was that the theatre paid the performers, provided the space and tech people, and I provided the show, I directed, provided the costumes, the props, held auditions and cast the show. The current production, (April 2026), I'm just collecting royalties. The one coming up in June will be like the former one I just described. For IRS purposes, the classification is still the same 711510 : Independent Artists, Writers, and Performers. It is used on tax forms (like Schedule C) for self-employed, freelance individuals creating artistic works, performing, or providing technical expertise in arts and entertainment, including actors, authors, photographers, and musicians. From the sounds of it, I will just take my expenses as Schedule C and not deal with "Start up" etc... the LLC is pretty much ignored by the IRS as an entity anyway. Thanks for your insight. 

[CatinaT1 · Accepted solution]

Hope you saw my other post to you. One Schedule C, same as you have done previously using code 711510. No start-up cost, this is all ongoing income and expenses.

Your LLC is a disregarded entity by the IRS, so there is no before LLC and after LLC. You also don't need to track your income and expenses for your Schedule C based on Show 1, Show 2, etc. You may want to do that for your own information, but on the Schedule C all your income and expenses are based on the year, not per production. 

[TuckerdogAVL]

Thanks. I've gone round and round with this, and after lots of reading and research - and help from folks  like  you - finally got to the solution. It's big "negative/loss" this year, but I have all the documentation. PS Found your detailed response on my other thread. 

**I'm still confused on how to handle the travel mileage and meals. I assume I haven't used the car for work since acquiring it in 2019. I will make the "start date" for car use when I went up for the auditions, and do the mileage from there... and for meals, it's 50% correct? TT will do the math when I put the info in... right? Haven't done "meals and travel" for a number of years, pre-pandemic for sure. Most of the income has been remote. And going forward that will be the "first use."  I just have to plug in the info., correct?... let me know if I'm on the right track now. 🙂 Thanks again. I've been using TT since the mid 00s and it just gets better with age.