I started a startup in November, established as a C corporation. We made a single payment to a lawyer to have him file the papers and write the bylaws (payment was from my personal account). We didn't launch until February, and thus have no income resulting in a net loss for my total income. I've already filed with my state, but I am confused by what I need to file for federal taxes. What forms do I need to fill out and can I do it electronically?

1 Answer 1


How did you file with the state without filing federal returns? Why didn't you do it together?

It is form 1120. Note that the payment to the lawyer is not an expense you can fully deduct, only up to $5K, all the rest has to be amortized over 180 months (assuming the total is less than $50K).

It sounds like your company has a calendar year, so how come you're dealing with this now? You're very late.

Talk to a EA/CPA.

  • I am pretty late. I generally just got distracted from filing before now. Also, I was able to file directly with Texas (the state I incorporated in) electronically. I didn't need anything at the federal level to do that. The lawyer was only a $600 cost, so that should be fully deductible. Commented Aug 9, 2012 at 21:49

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