Can I deduct software bought before registering my business?

Yes — in the U.S., software bought before you formally register your business can often still be deductible, but it is not automatically an ordinary business expense just because you bought it before registration.

If the software was purchased to help you prepare to start the business, it is often treated as a startup cost for tax purposes. In general:

• You may be able to deduct up to $5,000 of eligible startup costs in the first year the business becomes active.
• If startup costs exceed $5,000, the excess is generally amortized over 180 months (15 years).
• The immediate deduction can be reduced if total startup costs are high enough.

A few important points:

• The key date is usually when the business actually began active operations, not just when it was registered.
• The software must be for business use and tied to getting the business started.
• Not all software is treated the same way; some may be capitalized or depreciated depending on what it is and how it is used.

So the short answer is: often yes, but the tax treatment depends on when the business became active and how the software is classified. Because tax rules can vary by country, if you are outside the U.S. you should check the rules for your local tax authority.