Corporations – Start-Up Expenses

Many people start their own business and set the business up as a corporation. And like all corporations they have start-up expenses. These expenses are incurred before the corporation begins business operations. When starting a new business a business owner has costs such as investigating the business and getting it started and may incur some of the following expenses:
Market research
Operations facilities and labor market analysis
Payroll expenses for training employees
Advertising
Various professional services
Business related travel
For tax purposes the corporation can elect to deduct up to $5,000 of start-up costs as current expenses and amortize all remaining costs over a 180-month time frame. Form 4562 must be filled out and attached the corporate return for the year in which the amortization period begins. It is highly advisable to obtain the services of a tax professional for preparing all IRS related documents related to corporate returns.