united-states, taxesI’ve found this IRS document that provides a lot of details on business expenses, but didn’t find the following information after skimming through it.
Generally you can deduct or depreciate equipment, but the rules can vary based on the purchase price. Since tax laws change year-to-year, you really need to speak to a CPA or do your own research on the IRS website to see which rules apply to your specific scenario. Many rules depend on your ownership structure and annual revenue.
No special paperwork is required prior to the purchase but it's a good idea to have receipts for everything. You do not have to register the business but it's a good idea to open a separate checking account for the business as early as possible. You can use a personal checking account, but personal accounts have certain restrictions which you may find too limiting, so you may want to open a business checking account. Opening a business bank account requires you to register for an EIN.
If you are in the early stages of planning your business, I would highly recommend speaking to someone at your local Small Business Development Center or contacting a mentor through SCORE. They will probably be able to answer most of your questions, and more, in a 1- or 2-hour meeting.
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