Optimizing deductions and whether to add legal fee under start up cost vs business expense?

[HangginAround]

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!

[ZoltanB45 · Accepted solution]

Does not make a much of  difference but 2 things to consider

1. Lawyer organized the business so it wasnt legal fee-organizational cost
2. It happened prior to legally having a business to deduct expenses

Enter it as an organizational or start-up cost.