I am starting a landscape business and want to purchase some equipment and truck now while some of it is on sale. I am curious if I can hold onto the receipts and use them AFTER I get my license as write-offs. I have found that I can but it is 3rd party information. Any idea where I can read it black and white? If I cannot, I will wait to purchase everything so I can write it off; business cards, flyers, uniform, ect.

Thanks!

I have been up all kinds of hours trying to learn what is what about starting a business and feel like my head is going to explode!

My first advice would be to spend the money to meet with an accountant for 30-45 minutes. It might be a week or two before most accountants slow down enough to have time to talk since April 15th is looming but I think the time and money would be well spent. An accountant can answer every question like this you have an also give you advice you've never even considered and help you save money on your taxes.



That being said, while I'm no accountant, I don't believe the IRS cares anything about a business license. You can be in the process of starting a company long before all your local licensing is done and you can still write off legitimate purchases made for the business. As long as you are in the same calendar year and in the process of starting the business I can see absolutely no reason it would matter that you made the purchases before the business license was obtained.  I've started a lot of businesses over the years and my CPA has never mentioned anything to make me believe differently.



Good luck!

It is no problem. I would not do it where it spans different years but if you are going to buy crap now and start working in a couple months no problem. Just keep detailed records of everything. You should have a separate checking account for your business and run everything through that. You won't be able to open that account until you get your business set up though. It is no big deal to reimburse yourself later though for expenses.

I have a business checking account but I also have an account set up in quickbooks where I enter and reimburse myself for things I buy for the business with personal funds.

Start up costs are deductible as long as they are in the same tax year and are documented. IRS doesnt care about licenses only taxes. I have always included any incurred expenses on that years taxes (even if the company hasn't sold/made a thing) on my schedule C, it offsets your tax liability for that year. For major purchases you need to talk to an accountant or do some reading as to how and when you want to depreciate the asset(s).



Startup is easy just time consuming. More than likely you need to register the business with the secretary of state, get a sales tax ID (if a taxable service), decide on what business structure you want to be (sole prop, LLC, etc) and file the required paperwork depending on which one you decide on, get an EIN if you need one, get general liability insurance, find financing (the hardest part for start-ups) then go make $$$ and pay your share to the GOV (it's a lot)



 

Good luck.

It is a consumer driven business and I hope you are in a position to target the very rich and not the middle class or the lower rich.