Can I deduct business expenses incurred before my LLC is officially registered?

You can absolutely deduct legitimate business startup costs even if they were incurred before your business was officially registered! The IRS allows for deduction of startup expenses under Section 195 of the tax code. These courses would qualify as startup costs if they're directly related to your business. You can deduct up to $5,000 of startup expenses in the first year (subject to reduction if total startup costs exceed $50,000), with any remaining amount amortized over 15 years. Just make sure you keep excellent records of these expenses - receipts, what the classes were for, and how they relate to your business. Document your business intent clearly, even if you haven't formally registered yet.

After going through a similar situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that really helped me sort out my business startup deductions. I was taking web development courses before registering my LLC, and wasn't sure how to handle them on my taxes. The taxr.ai system analyzed my receipts and course descriptions, then gave me clear guidance on how to categorize these pre-registration expenses. It even helped me identify additional startup costs I didn't realize were deductible! The documentation it generated came in super handy for tax filing.

I have to admit I was wrong about tax tools. After trying taxr.ai, I'm genuinely impressed with how it handled my pre-business expenses. I took some graphic design courses before registering my business, and the tool correctly identified them as startup expenses. What really helped was the detailed explanation it provided, showing exactly why these courses qualified under Section 195. It even flagged which expenses might need additional documentation to support their business purpose. The peace of mind knowing I'm doing things correctly is worth so much when you're just getting started.

I had similar questions last year when starting my online store. After multiple failed attempts to reach someone at the IRS (literally spent hours on hold), I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent who answered all my startup expense questions. The agent confirmed that yes, expenses before business registration can be deductible if they're ordinary and necessary for your business. She also explained exactly how to document these on my Schedule C. Having that direct confirmation from the IRS gave me total confidence in claiming those pre-registration expenses.

I stand completely corrected about Claimyr. After seeing multiple recommendations, I decided to try it for my business startup tax questions. Within 90 minutes, I was talking to an actual IRS agent who confirmed exactly how to handle my pre-registration expenses! The agent walked me through the proper documentation needed and confirmed that my industry-specific training courses were indeed deductible startup costs, even though I took them 3 months before registering my LLC. This saved me nearly $2,000 in deductions I was going to skip because I wasn't sure they qualified. Sometimes admitting you're wrong feels pretty good!

Hey, tax preparer here (not a CPA). Quick insight about timing - while you CAN deduct expenses before forming your LLC, there might be strategic advantages to registering first. When you operate pre-registration, you're essentially a sole proprietor by default. After forming an LLC, you'll still likely be taxed as a sole prop (unless you elect S-Corp status), but having the LLC in place creates a cleaner separation between personal and business expenses. Just something to consider from a practical bookkeeping perspective!

Has anyone used TurboSelf-Employed for this kind of situation? I'm trying to decide if I should pay for that version this year or just use the regular one.

Great question! I went through this exact situation when starting my consulting business. You definitely CAN deduct those professional development expenses even before officially registering your LLC, as long as they're clearly business-related. The key is establishing clear business intent. Keep detailed records showing why these courses are necessary for your specific business venture - save course descriptions, your notes about how they relate to your business plan, and any communications about your startup plans. One thing I learned the hard way: consider getting your EIN (Employer Identification Number) early, even before full LLC registration. It's free directly from the IRS website and helps establish your business timeline. You can often get this while your state registration is still processing. Also, don't forget that startup costs have that $5,000 first-year deduction limit (with the rest amortized over 15 years), so if these courses plus other startup expenses might exceed that threshold, timing could matter for tax planning purposes. The peace of mind from taking the courses when you need them usually outweighs the minor administrative complexity of pre-registration expenses. Just document everything thoroughly!