Do you capitalize or expense incorporation costs?
submitted by Marty

Terry

Incorporation costs are considered to be expenses. They are expensed as they happen.

They're not usually capitalized because they don't provide a future economic benefit beyond setting up the business. They're not an investment, per se.

Rembebbly

If you're following GAAP, you'd expense incorporation costs. However, if any costs are directly related to issuing stock, you might capitalize those as part of the stock's issuance costs. But for the most part, standard incorporation fees are just expenses.