Hello everyone, Forgive me if I am in the wrong forum. I am hoping this
belongs in start-up business questions. I am starting a business that is
seasonal. This business will not start until spring 2013. There is a lot to
do between now and then. I am wondering if I should spend money no or wait
till Jan 1 2013. If I spend money now can I write it off when I tart the
business up next year or do I wait. Thank you Shannon
Hello, am doing a research on staring up a non emergency medical
transportation, and any ideas regarding on how to get started, the first
basic steps will be quite welcomed.
jtowbin | Community Moderator |
11/6/2012 - 11:24 am
Show Replied Text…
Hello, am doing a research on staring up a non emergency medical transportation, and any ideas regarding on how to get started, the first basic steps will be quite welcomed.
thanks
If you're going to spend more than $5,000 on "startup stuff", it'd be good to
wait until you start business before you really start spending.
Here's why: Startup expenditures aren't (once they rise above $5,000-ish)
very easy to deduct... Rules are complicated and basically you have to spread
the deduction out over 15 years.
You might want to talk with a local CPA or EA to get their help with
structuring the business so it starts before the major expenses do.
Good luck!
Steve
Stephen L. Nelson, CPA, Author QuickBooks for Dummies
If you're going to spend more than $5,000 on "startup stuff", it'd be good to wait until you start business before you really start spending.
Here's why: Startup expenditures aren't (once they rise above $5,000-ish) very easy to deduct... Rules are complicated and basically you have to spread the deduction out over 15 years.
You might want to talk with a local CPA or EA to get their help with structuring the business so it starts before the major expenses do.
Good luck!
Steve
Hi Stephen,
I'm planning to start a business that is completely home-based with no
employees. It will be a training/coaching type of business (with very
specific subject matter and customers), so it will require a lot of initial
research; similar to a writer who researches for a book, but instead of
writing a book, I plan to give the information in person--speaking,
workshops, etc.
My question is: I would like to spend some money (well under $5K) for
research materials such as books, subscriptions, memberships, and probably
would also have to buy a computer for the business. BUT...this is all in
preparation, so that I can confidently start the actual training/coaching in
about a year to 18 months (and even then, it would be part-time until I could
build it up a bit). Can I start up an LLC now so that I can deduct any of
these expenses, even though I don't plan to have income for a year or two?
JGabriel | Community Moderator |
11/15/2012 - 10:24 am
Show Replied Text…
Hi Stephen,
I'm planning to start a business that is completely home-based with no employees. It will be a training/coaching type of business (with very specific subject matter and customers), so it will require a lot of initial research; similar to a writer who researches for a book, but instead of writing a book, I plan to give the information in person--speaking, workshops, etc.
My question is: I would like to spend some money (well under $5K) for research materials such as books, subscriptions, memberships, and probably would also have to buy a computer for the business. BUT...this is all in preparation, so that I can confidently start the actual training/coaching in about a year to 18 months (and even then, it would be part-time until I could build it up a bit). Can I start up an LLC now so that I can deduct any of these expenses, even though I don't plan to have income for a year or two?
Thanks much!
Hi Wendy, check out the blog on how to write off the expense of starting your business.
betrand ezema | Window Shopper | 11/1/2012 - 5:31 pm
transportation, and any ideas regarding on how to get started, the first
basic steps will be quite welcomed.
thanks
jtowbin | Community Moderator | 11/6/2012 - 11:24 am
SeattleCPA | Window Shopper | 10/30/2012 - 2:11 pm
wait until you start business before you really start spending.
Here's why: Startup expenditures aren't (once they rise above $5,000-ish)
very easy to deduct... Rules are complicated and basically you have to spread
the deduction out over 15 years.
You might want to talk with a local CPA or EA to get their help with
structuring the business so it starts before the major expenses do.
Good luck!
Steve
WendyS | Window Shopper | 11/15/2012 - 8:24 am
I'm planning to start a business that is completely home-based with no
employees. It will be a training/coaching type of business (with very
specific subject matter and customers), so it will require a lot of initial
research; similar to a writer who researches for a book, but instead of
writing a book, I plan to give the information in person--speaking,
workshops, etc.
My question is: I would like to spend some money (well under $5K) for
research materials such as books, subscriptions, memberships, and probably
would also have to buy a computer for the business. BUT...this is all in
preparation, so that I can confidently start the actual training/coaching in
about a year to 18 months (and even then, it would be part-time until I could
build it up a bit). Can I start up an LLC now so that I can deduct any of
these expenses, even though I don't plan to have income for a year or two?
Thanks much!
JGabriel | Community Moderator | 11/15/2012 - 10:24 am
jtowbin | Community Moderator | 10/26/2012 - 2:20 pm
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