I've been considering purchasing a new laptop and I'm wondering if I should do it before or after I officially file my LLC with the state.

From what I understand costs associated with starting up can be fully written off in the first year of business but if I wait until after I would have to depreciate the laptop over 5 years. I also read somewhere that computers and other certain expenses are still considered capital expenses regardless of when purchased.

So I'm really confused now and hoping someone can help tell me which way is the best way to go based on tax implications.

On a side note, I don't need the laptop to start as I have desktop but I would consider it if I could fully write it off since I will be needing one in 6mos to a year.

Thanks!

Computers are a capital item but you could elect a 179 deduction which would allow you to fully expense the item in the year purchased.

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Rebecka Melson ~ Virtual Business Services

If I purchased the computer but the credit card used was under a friends name can it still be used as a write off. Does everything I purchase have to be purchased under my name even if I use someone elses credit card and I pay the bill on it?