Discussion:New Company - Startup Expenses
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Discussion Forum Index --> Tax Tips --> New Company - Startup Expenses
CPAgambler (talk|edits) said: | 4 January 2008 |
| As everyone knows a new Company cannot expense more than $5,000 (with an election) of startup expenses in the initial year. Any expenses beyond the $5,000 threshold must be amortized over a 15 year life. Therefore, a business should get out of the "startup" phase as soon as possible because 15 years is long time to wait for a deduction. One tax planning strategy... While the "brick and mortar" store is being completed, begin selling products through your website to commence the business for tax purposes. Once revenue is collected from the website, ordinary and necessary business expenses can be deducted in the current year without regard to the 5,000 limit because the Company has effectively started the business. | |
| 9 January 2008 | |
| If one is doing business through the website then ill advice them to form a Offshore company with and offshore Bank account. An offshore company starting cost is not more than US$250 and the yearly maintenance is the same. To open an offshore bank account it cost US$300, an one off payment. An offshore company has limited liability without any need for auditing, accounting or reporting.
Having an offshore company it permit you to do business worldwide. | |
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