Start up Cost

With a journal entry:

Debit the expense account, credit an Owner's Draw (Equity) or Owner's Loan (Liability) accont.

If you already have the bank account set up and paid the start up costs from the business bank account, then just record a check.

If you paid more than $ 5000 (5 thousand) you might need to capitalize some of your start up costs. In this case you probably want to set up an Other Asset account for the Start Up Costs and debit this account instead of the expense accounts.

Reka

Additionally, start up costs are not expensed until the business "starts". This is usually when the business is ready to produce income.

Start up costs are not an expense, they are a fixed asset. You have the option to take off $5000.00 in the first year under certain circumstances. Otherwise they must be amortized over 180 months.

Marc Barnes

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$5,000 of the start up expenses can be expensed in the year the active business begins only if the total startup costs are $50,000 or less. Any other costs considered startup are capitalized and amortized beginning in the month in which the active business begins.

Certain expenses, such as interest are by definition not a startup expense. Items otherwise capitalized such as fixed assets aren't startup, although any depreciation or amortization could be. Inventory for resale is not considered startup.
 

Mimbreno your wording is incorrect. Start-up costs are not an expense.

This is from the IRS. "The election to amortize organizational costs must be made no later than the tax return due date, including extensions, for the year in which the business begins operating. The election is made by attaching a statement to the return showing information such as the type of expenses, date incurred and amortization period.(See note)" 

Section 179 allows you to expenses up to 100% of certain assets but they are still fixed assets and startup costs are no different. You will have a fixed asset (startup costs) and accelerated accumulated amortization to recognize the $5000.00.

Note: Treasury recently issued final and temporary regulations (found in TD 9411) that change the rules for deducting start-up costs and organizational costs incurred by corporations and partnerships. Because of the various electronic filing initiatives and the fact that most taxpayers want to deduct these costs, taxpayers are no longer required to file a separate election statement to deduct them. See Temp. Regs. 1.195-1T, 1.248-1T, and 1.709-1T, which apply to expenditures paid or incurred after 9/8/08 (although taxpayers can apply the regulations to expenditures paid or incurred after 10/22/04 if the limitations period on assessment of tax is still open).

Marc