There are two categories; start-up costs and organizational costs that are eligible for tax deductions.
First are Start-up costs: Some of these costs might include surveying markets, analyzing products, visiting potential business locations, employee training, advertising expenses, buying domain names, setting up websites, and any other costs associated with creating or investigating a new or existing business.
Second are Organizational costs: If you legally set up your business as a partnership or corporation you can deduct these costs as well. The expenses typically associated with incorporating are: legal fees, state organization fees. Expenses associated with setting up a partnership agreement include: legal expenses as well as filing and accounting fees.
In addition to the $5,000 start-up tax deduction, you can take up to $5,000 as a deduction for organizational costs.
When start-up or organizational costs exceed $50,000 special rules will apply.