It is not an expense.
create an asset account and book the costs to that asset account, create a sub account for accumulated depreciation.
It is what the IRS calls a section 197 intangible, and it is depreciated over 15 years. There are exceptions (there always are with the IRS) if this purchase of a service/trademark is associated with the purchase of a franchise.
Chapter 8, IRS pub 535
and
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Intangibles
Thanks Rustler! I run into your response in another post. The issue is it was not clear on how to classify a failed registration, legal fees, and the adjustment process for the depreciation. For example, does the registration need to be approved to classify the costs related under intangible asset? How about the legal fees? Thanks again.
