Home business and business licence?

M

mcgillvy

New member
Hi,

I'm starting a home business, but I don't have a business licence yet [I cannot decide on a business name]. Anyway, there are some supplies that I desperately need to buy, but I want to be able to claim them as a business expense. Am I able to purchase them now, keep the receipts, then apply them against my business licence once I get it?

Thanks.

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Your business license allows you to apply for a get a "wholesale number" that allows you to purchase items at wholesale dealers without paying you "state sales tax". You can always deduct business expenses from your profit/loss statement and income taxes.
 
Yes, you can. The bookkeeping procedure is to eventually issue yourself a check from the business in the amount of the expenditures, and treat it as an expense reimbursement.
 
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