Suppose I register my photography business as LLC. I purchased all the camera gears and other stuffs needed but couldn't book 1 client.

Will I have to pay anything from my pocket during tax filing?

Thanking you in advance.

The camera equipment and business setup costs are a cost of doing business and are deductible against business expenses. However, because you setup the business as an LLC, I don't believe you can deduct those costs against personal income.

Scott,

That may not be true.

An LLC is a BUSINESS entity, not a tax entity. If it was registered as a "disregarded entity", then the income and expenses are reported on Schedule C as personal income or loss.

Ahh for correcting me on that.

Scott,

No problem!

Andy,


You CAN claim the costs of the equipment on Schedule C, provided you have registered the LLC as a "disregarded entity". The loss can reduce your taxes on other income, such as salaries for or your spouse if you are filing a joint return.