Good evening,
I started a LLC last year and have several thousand dollars in startup expenses, but have not turned a profit. We're still heavily marketing our services.
Startup expenses include marketing efforts, paid training, and other online tools.
I'm not even close to being out of the red technically, can I still write these items off? Is the IRS more lenient in the first year of a business?
I read that over time if you're not turning a profit they can deem your business a hobby, but I just wanted to make sure since this is only year 1.
Thanks in advance-
I started a LLC last year and have several thousand dollars in startup expenses, but have not turned a profit. We're still heavily marketing our services.
Startup expenses include marketing efforts, paid training, and other online tools.
I'm not even close to being out of the red technically, can I still write these items off? Is the IRS more lenient in the first year of a business?
I read that over time if you're not turning a profit they can deem your business a hobby, but I just wanted to make sure since this is only year 1.
Thanks in advance-