I have a full-time job and am interested in forming an LLC paying a foreign company in China to build a website or app prototype for my side startup. Can I deduct this cost against my income from my day job? What do I need to be careful about?

update: I am in the USA.

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    1. That will depend on the your legislation in your country (hint) 2. Probably not – Jan Doggen Aug 6 at 8:14
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    Tip: Tax questions require a country tag. – Chris W. Rea Aug 6 at 11:59
  • See an accountant. In these cases they are worth what you pay in fees. – Pete B. Aug 6 at 15:05
  • From a quick look at this IRS publication, I think you'll agree the situation of what can be deducted as an expense is...large: irs.gov/publications/p535 A lot changed in 2018, as well, so old advice may be out of date. Setting business losses/expenses against other income/employment is even more complicated, so I would also strongly suggest a CPA-equivalent to consult on the particulars, as so many little details that are hard to cover here may matter (including state income taxes, if you have them!). – BrianH Aug 6 at 20:52

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