LLC-sole propertior. I began operations on Nov 17, 2012. I bought $ 15,000 worker comp insurance for one year on Nov 8, 2012. Paid $7,450 deposit with my personal checking and 3 installments. My questions: 1. Is my insurance a starup cost for tax purpose? 2. How can I get reimbursed? 3. Are these entries correct?
Dr prepaid insurance 15,000
Cr account payable 7450
Cr insurance payable 7550
4. Do I need this entry for financial books
Dr starup cost - prepaid insurance 7,450
Cr account payable 7,450
5 Do I need this entry for tax books
Dr starup cost - prepaid insurance 5,000
Dr deferred starup costs 10,000
Cr account payable 7450
Cr insurance payable 7550 please help me!!