In most cases, there’s nothing “small” about the expenses you have when you start a small business. Dozens of expenses pop up long before you actually open the doors for business. You need a place to work, supplies, furniture and probably employees.
For the most part, the expenses you have at start-up are capital expenditures – money you spend as an investment in the business. Good examples are the costs of buying a building or machinery. Generally, you can’t take tax deductions for these expenses, and usually you won’t recover or recoup those expenses until you later sell the business.
However, there are some start-up costs you can recoup on your tax returns without having to wait for the day you sell. A special deduction or amortization can help you recover some of these costs.