My partners and I started a business midyear '06. The business is not operational and still in the planning stage. We have incurred minimal expenses thus far:
5/26/2006 11.18 Godaddy (Annual Domain Name Fee + 2 months of server space/DB access)
7/14/2006 48.51 NOLO LLC Book
7/27/2006 188.99 Turnkey Web Tools
7/26/2007 3.99 Godaddy (Server Space charge)
8/5/2006 47.72 Best Software Accounting
8/9/2006 44.98 1 & 1 Internet (3 Mo.)
8/23/2006 203.86 Windows XP Pro (2 Copies)
8/30/2006 5 Google Book
9/21/2006 45 Registered Agent Fee
10/30/2006 120 Certificate Of Formation Fee
11/8/2006 44.98 1 & 1 Internet (3 Mo.)
764.21 Total
Us three partners have each incurred 1/3 of the cost equally.
Questions:
1.) How would I classify/post these expenses for internal accounting purposes?
2.) Does the business have to file a tax return even though we are not operational? The business is registered in Deleware as LLC.
3.) Do these expenses incurred trickle down to our personal tax returns and reduce our taxable income?
Thanks,
Joe