I bought equipment before registering my Alabama LLC, can I claim those expenses?

Generally yes, but the LLC didn't exist yet so technically you were a sole prop. You can often claim start-up costs, but talk to your CPA. I'm not one.

Section 195 start-up costs. Look it up. You can deduct up to $5k in the first year, rest amortized over 15 years. Equipment might be different though since it's a capital asset.

Your accountant is asking for receipts, not legal advice from a forum. Just give them the receipts and let them figure it out. That's what you pay them for.

Might depend on whether you were operating as a sole prop before the LLC. If you were already selling baked goods, those are just regular business expenses.

Friends and family sales count if you reported the income. Did you report it?

Lol. There it is.

If you didn't report the income, claiming the expenses against LLC income later could be a red flag. Not a big deal for small amounts, but keep your story straight.

This is why I formed my LLC before I bought anything. Cost me $200 to file and saved me a headache. Y'all do too much.

Peachtree that's not not helpful. People start businesses before they file paperwork all the time. It's normal.

Also $200?Alabama LLC filing is $200 minimum, but you gotta pay the $50 name reservation too unless you skip it. And the annual report. Don't act like it's free.

I didn't say free. I said $200. Which is what it costs.

Technically the name reservation is optioanl if you're confident nobody's taken it. But most people do it.

Also keep in mind equipment gets depreciated, not expensed all at once, unless you use Section 179. Ask your CPA about that. Could be a big deduction this year.