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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.
My question is: If I pay for the service from my personal funds, is the flat fee a tax deductible fee? Or would it be best to fund the corporation then pay the fees from the corporate funds. I'd like to reduce my taxable income for 2007 if possible. Thanks

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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