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How to Take the Deductions. The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less.If your startup costs for either area exceed $50,000, the amount of your allowable deduction will be reduced by that dollar amount.ow to Take the Deductions. The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less.
Starting a Business. Legal and accounting fees that you pay to start a business are deductible only as business start-up expenses. You can deduct $5,000 of start-up expenses the first year youâre in business and any excess amounts over 180 months.The same holds true for incorporation fees or fees that you pay to form a partnership or LLC.tarting a Business. Legal and accounting fees that you pay to start a business are deductible only as business start-up expenses. You can deduct $5,000 of start-up expenses the first year youâre in business and any excess amounts over 180 months.