Can I deduct start-up costs like legal and LLC filing fees for my new business?

Yes. The fees you pay to create a legal entity, such as state LLC or incorporation filing fees, attorney charges for drafting an operating agreement, and accounting to set up your books, are 'organizational costs.' The IRS lets you deduct up to $5,000 of organizational costs and a separate $5,000 of general start-up costs in your first year of business, with amounts above that amortized over 15 years. Each $5,000 first-year allowance phases out dollar-for-dollar once the respective category exceeds $50,000. These deductions become available in the year the business actually opens, so keep dated receipts and separate pre-opening costs from ongoing expenses. It is one of the more overlooked write-offs for brand-new owners.