Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

organizational expense

Read a random definition: Wisby, laws of

A quick definition of organizational expense:

An organizational expense is money spent while setting up a company or other organization. It is a type of business expense that is charged against revenue for a specific period. Examples of organizational expenses include legal fees, incorporation fees, and accounting fees. These expenses are not tax-deductible and are usually amortized over a period of time.

A more thorough explanation:

An organizational expense is an expenditure of money, time, labor, or resources incurred while setting up a corporation or other entity. It is a type of business expense that is charged against revenue for a specific period.

Examples of organizational expenses include legal fees, accounting fees, and state filing fees incurred during the process of incorporating a business. These expenses are not deductible in the year they are incurred but must be amortized over a period of time.

For instance, if a business spends $10,000 on legal fees and other expenses to incorporate, it cannot deduct the entire amount in the year it was incurred. Instead, it must spread the expense over a period of 180 months (15 years) and deduct $56 per month as an organizational expense.

The purpose of amortizing organizational expenses is to match the expense with the period in which the business benefits from it. This ensures that the business does not receive an unfair tax advantage by deducting the entire expense in the year it was incurred.

organizational crime | organizational meeting

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.