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Tax impact on Fees to Start a Business? |
Hi, I plan on starting a business, and instead of starting from scratch I intend on going through a company which provides the training, software licencing, setup assistance including incorporation, and access to their network of other owners affiliated with them. The company charges a flat fee for all of these services I also plan to incorporate (S Corporations) as part of the business startup. Loan the money to the corporation and document it with a simple promissory note. You can find one online by searching for "free promissory note". Then record in the corporate minutes a board meeting authorizing the loan. Kind of a pain but that's what you need to do to maintain the protection a corporation affords you. These expenses will be capitalized and amortized over future periods. A portion might be able to be expensed immediately. Since I don't have all the details I further suggest you have a brief discussion with a cpa. |
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