August 17, 2017 at 1:05 am #96843
I received the following question from one of our readers today:
I started a new business with my husband as my partner in January 2017. We structured it through legalzoom as an LLC We invested 100,000 of personal funds to start the business as equity shares not as a loan to business. We have had no income yet, as we are developing a product. We have not paid any salary to anyone.. we have used almost all the funds towards development and marketing… My question is about taxes.. We have spent a lot of extra personal funds on travel expenses & a computer & cell phone … we have been traveling to meetings with various potential investors. Can we deduct any of these expenses from our personal tax return?
Here is my response:
You can deduct any expenses that you have paid on behalf of your business from your business tax return and not your personal tax return. You can refer to our Small Business Owner’s Guide to LLC Taxes for more info here:https://fitsmallbusiness.com/llc-taxes-tax-returns/. I would also recommend that you consult your tax professional who can review & assess your specific tax situation.
Thank you for reading!