If you spend money on a business before it is operational, then those expenses will likely be deducted over 15 years (i.e. very slowly). To avoid this, try to make your business operational as soon as you start spending money. Do this by having your business “in a position to generate revenue” as soon as possible by making your first sale quickly or at least being in a position to accept the first sale. Any expenditures after that positioning will be deductible “ordinary and necessary operating expenses” rather than non-deductible “start-up expenses”.
Accounting and Consulting