I'm starting an LLC with a couple of partners. But before we incorporate we need to finalize a partnership agreement.

I would like to initiate a few time-sensitive things such as a patent search before incorporation is complete. These lawyer services will come out of my pocket.

Can I include this in our financials as capital investment / start-up costs once incorporation is finalized?

Can I account for start-up costs that occur before incorporation?

  • 3
    OnStartups would be a better suited place for such a question, by the way.
    – littleadv
    May 16 '12 at 18:21

Yes you can. You should talk to your tax advisor re the specific expenditures that can be accounted as startup-costs (legal fees are a good candidate, for example). If they add up to significant amounts (>$5K), you'll have to capitalize them over a certain period of time, and deduct from your business' income.

This is not a tax advice.:-)

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