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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11806
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I'm exploring an online business opportunity and have yet to

Customer Question

Hi - I'm exploring an online business opportunity and have yet to register a business name. I have already paid for web design and logo design. Am I still able to claim these start up expenses after I register the business later down the track, or do I have to register the business first? Thanks
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: Not at this stage
Submitted: 7 months ago.
Category: Finance
Expert:  Lane replied 7 months ago.

Hi. My name's Lane ... I can help here.

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What matters about taking the startup costs is that you're "in business."

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Many sole-proprietors, for example, (what any business owner is that hasn't formally registered with the Secretary of state), never register.

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(not a great idea for risk management purposes)

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But from a tax perspective the business just must be a going concern ... that means "open for business."

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IRS will say whether you are open for business is a "all facts and circumstances test," but the place where that MUST be the case is when you have revenue.

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(IRC §162)

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Please let me know if you have ANY questions at ALL, before rating me.

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If this has helped, and you DON’T have other questions … I'd appreciate a positive rating using the Stars on our screen (and clicking submit).

Otherwise I'm not compensated for the time here.

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Thanks!

Lane

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I have a law degree, with electives in Tax Law, Estate law, Corporate law, and business planning … an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.