Did your business incur expenses before you were technically “open for business”? Did you know that you can write off some of these expenses against your business as soon as you are operational? You may deduct up to $5,000 in start-up costs in your first year in business. This deduction is restricted if you have over $50,000 in start-up costs. If you have additional start-up costs over the $5,000, you can amortize these costs over 15 years. If you are not going to be profitable in your first year, you may want to consider another option to minimize your taxes in years where you make more profit. You can also wait to recover your start-up costs until you sell your business or close the business, but most business owners don’t want to wait that long to get the tax benefit from these start-up costs.
To learn more, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.