Accounting for Incorporation Costs

[Dr Batsen D Belfry]

All,

If anyone can refresh my memory I would appreciate it. Can we reimburse the partners of our LLC for costs incurred to incorporate the LLC? As I recall, we can't, but we can write it off our personal taxes.

The only thing I learned from my accounting coursework was the shrapnel radius from a calculator hurled at high speed against the outside wall of the Katz Graduate School of Business, which happened immediately after my Managerial Accounting final.

Any and all help greatly appreciated.

DBDB

[FloridaPat]

1. Should be under "start-up costs" which can be repaid.

[mongo]

2. Yes, but these startup costs must be amoritized over several years.

In other words, the LLC can pay the principals back for the the unreminbursed expenses. But the LLC has to spread the expense deduction over several years.