Did you know that some of the expenses of getting your business started qualify as a business deduction? Most new businesses incur many costs from the start. These include things like advertising, office supplies, repairs and utilities. These are considered capital expenses. The first year that you get started you can claim up to a $5,000 deduction for them. Any additional costs for starting up your business will need to be defrayed over the next 15 years equally.
Because it is costly to start a business; and even more so because most businesses lose money in their first years; this tax law is in place. Keep close track of all of your investments into your business from the start. The IRS will require that you have records if they should audit you. This can be a considerable benefit to those looking to start businesses who are worried about taxes, too.