Organizational costs for a corporation

If you set up a corporation (C or S), certain expenses unique to this form of business can be written off under the same rules that apply to business start-up costs. These expenses include the cost of:

- Temporary directors
- Organizational meetings
- State incorporation fees
- Accounting services for setting up the corporate books
- Legal services to draft the charter, bylaws terms of the original stock certificates, and minutes of organizational meetings.

You can deduct any other organizational costs if they are incident to the creation of a corporation, they are chargeable to the capital account, and the cost could have been amortized over the life of the corporation if the corporation had a fixed life.