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QUESTION DETAIL
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We're getting ready to open a new business and are currently in the process of incorporating. We're not going to be opening up a bank account until we've incorporated and received our tax identification number. In the meantime, we are incurring some expenses. Can we classify these expenses as pre-incorporation and treat them as startup expenses?
ANSWER
Expert Joseph Caplan's Answer:
I would assume that these expenses relate to the intial stages of the company & would treat them as start up expenses. Expenses such as accounting & legal fees associated with incorporating the business should be classified as organization expenses.
