Optimizing deductions and whether to add legal fee under start up cost vs business expense?
Hi,
I opened a new S corp in 8/2021 and paid $1500 in legal fees in 10/2021. Does it matter if I put this fee as start up cost vs business expense? I'm curious if this makes a difference in deductions. Thanks!
01312
1 Best answer
ZoltanB45
Level 8
Feb 22, 2022 7:39:36 PM
Does not make a much of difference but 2 things to consider
Lawyer organized the business so it wasnt legal fee-organizational cost
It happened prior to legally having a business to deduct expenses
Enter it as an organizational or start-up cost.
1 Replies
ZoltanB45
Level 8
Feb 22, 2022 7:39:36 PM
Does not make a much of difference but 2 things to consider
Lawyer organized the business so it wasnt legal fee-organizational cost
It happened prior to legally having a business to deduct expenses