Montana Startup Costs Worksheet
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How to fill out Startup Costs Worksheet?
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FAQ
Under Generally Accepted Accounting Principles, you report startup costs as expenses incurred at the time you spend the money. Some of your initial expenses, such as buying equipment, are not classified as startup costs under GAAP and have to be capitalized, not expensed.
Startup costs are the expenses incurred during the process of creating a new business. Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.
Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.
In contrast to fixed costs, variable costs are start-up costs that are likely to change in line with production or sales volume.
Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.
Fixed costs are costs that are independent of volume. Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
One-time expenses are the initial costs needed to start the business. Buying major equipment, hiring a logo designer, and paying for permits, licenses, and fees are generally considered to be one-time expenses.
One-time expensesNecessary equipment like a cash registers, machinery, or vehicles.Incorporation fees.Permits and licenses, such as city, county, and state licensing, or those related to your specific industry.Computer or technology equipment.Down payment for your office or store.Initial business cards.More items...
A realistic start-up budget should only include those things that are necessary to start that business. These essential expenses can then be divided into two separate categories: fixed expenses (or overhead) and variable expenses (those related to producing sales for the business).