2

I started my business (LLC) by filing online, and paying a fee for a registration, and that makes it a business cost right?

Also in the meantime while I bought some electronics to use for my business R&D, visited client in another state and because I had to make the init POC (proof of concept) working and had to demonstrate to the potential client that it's working, I didn't really have time to go to my local bank and pick up a business debit card.

And so I paid all the travel expenses with my credit card + the parts(electronics) and everything else.

My question is can I claim those costs as cost of my business, if yes, do I have to do something special like fill a form or something, or just input it in my accounting software along with receipts, and then when I'm doing taxes this would go under the investment or loses (is it somewhere along that line)?

I just started recently with my business, and didn't actually get the client I was in rush to impress, but there are many more opportunities coming my way and at this time I don't know if hiring a dedicated person to do my accounting is a smart thing to do. But I'm planning to do so, as long as I get my first contract.

1

or just input it in my accounting software along with receipts, and then when I'm doing taxes this would go under the investment or loses (is it somewhere along that line)?

Yes, this.

Generally, for the long term you should have a separate bank account and charge card for your business.

I started my business (LLC) by filing online, and paying a fee for a registration, and that makes it a business cost right?

Startup cost. There are special rules about this. Talk to your tax adviser. For the amounts in question you could probably expense it, but verify.

  • thanks for your response. I do have a bank account now, but you can imagine the travel arrangements/ and electronics/hardrware etc, cost was not little one, something I was thinking about and wanted to confirm that I could do it before I do – Gandalf StormCrow Nov 13 '15 at 23:16
1

There is no law that requires you to have a separate bank account for your business, or to pay all expenses from a business bank account.

It is a GOOD IDEA to have a separate bank account and pay all business expenses from that account and all personal expenses from your personal account, because that makes sorting out what is what much simpler, both in case of an audit and for your own accounting.

Whether a particular expenditure is a deductible business expense has nothing to do with what account you pay it from. If you pay advertising expenses for your business from your personal account, that's still (almost certainly) a deductible business expense. If you buy groceries from your business account, that's almost certainly not a deductible business expense. In your case, there are all kinds of rules about when and how much travel is deductible.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.