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Startup Cost for a "S" Corporation

In my newly formed S Corporation, I had Startup cost and other working cost for the first 9 months then I incorporated after the 9th month.

Do all the expenses need to be treated as Startup costs in the first 9 months? or does the S corporation date of filing mean when the Startup costs stop and continous expenses are now considered non-Startup costs?

I have approxmately $8K in startup and about $10K in expenses for my actual work.

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Startup costs - gray area

Sorry, last reply was kinda messy:

www.s-corp-compare.com.

Startup costs - gray area

I have to agree with the previous comment in that it's pretty much a gray area in regards to what are considered startup costs and what are ongoing expenses. Why are you trying to make that distinction anyway? Will they be treated different in regards to taxes?

Also, if you're looking to find lower start up costs for forming an s-corporation, you can compare prices here:
http://www.s-corp-compare.com.

Good luck.

Start Date

Hi,

The start date is a pretty nebulous thing. Generally, it's when you are ready to start doing business or start receiving income. If you're consulting, I would say it's when you started the contract. If you're selling website services or a product, I'd say it's when the site when live or you were ready to ship, even if you received no income immediately.

Don't forget that some of the costs will likely fall under Organizational expenses which gives you another $5000 to deduct in the first year, with the balance amortized over 15 years.

I'm not quite sure what you mean by "working cost". If those expenses were incurred after you started business, then those are fully deductible this year.

L:)

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