Wait… i can deduct that?! What counts as startup expenses?

So you’ve decided to start your own business — congrats, CEO!

But before you make it rain on Canva Pro and order 300 branded pens you’ll never pass out, let’s talk about what actually counts as a startup expense (and what’s just… vibes).

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🐼 “Startup Expense?” Say More…

Startup expenses are the pre-glow-up costs you rack up before your business is officially open or making money.

Think of it like the behind-the-scenes montage in a movie.

You’re not the hero yet, but you’re buying the outfit, building the website, and learning how to invoice like a boss.

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📝 Here’s What You Can Deduct:

    •    💻 Website domain + design tools (Squarespace, Google Workspace, etc.)

    •    🖋️ Legal stuff (PLLC filing, EIN, anything that made your brain hurt)

    •    🎨 Logo, branding kits, or your PandaWise avatar (yes, we love her)

    •    🧾 Office supplies, digital templates, business cards

    •    📚 Research and planning before you launch (even that book you skimmed halfway)

👉 Basically: if it helped you prepare to run your business, and you paid for it with the intent to launch, it likely counts.

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⏱️ When Does “Startup” Stop?

The startup phase ends when you:

    •    Start serving clients

    •    Make your first dollar

    •    Or launch your first offering (freebie or paid)

From that point forward, your costs are called operating expenses — still deductible, just in a different tax category.

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💸 IRS Says: “Cool, But Keep It Under $5K”

You can deduct up to $5,000 of qualifying startup costs in your first year. Anything above that? You’ll spread it out over time like a Netflix subscription.

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🚫 But Don’t Get Cute With It

❌ That Chick-fil-A run during your “planning session” doesn’t count

❌ Your iPhone 15 Pro Max (unless you only use it for business… yeah, sure)

❌ Your CPA study course — that’s education for a new profession, not a deduction (but worth it 😉)

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🐼 My Advice? Track Everything, Then Ask Me Later

Create a Startup Expense Tracker with:

    •    What you bought

    •    When and why

    •    Who you paid

    •    Receipts (even if they’re screenshots — IRS is chill as long as it’s legible)

Don’t guess. Document. Then slide into your accountant’s inbox with receipts and a smile.

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You’ve got this, boss. And if you don’t? You’ve got me.

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💬 Got a weird expense you’re unsure about? Email me at info@pandawisefinancial.com — no judgment, just wisdom.