C Corporation Start-up Costs

[Zee]

I hope someone can help.

I have a client that is starting a substantial maritime C Business. The underwriting fee alone is almost $500,000. The loan requirements include two Vessels. Once located, the Vessels require various certifications and refurbishment before they can become operational. During the interim period, offices must be located and set-up, computer systems in place, various management contracts, etc., and other tasks readying for operations.

Must all these costs be captured and amortized as start-up expenses until the Vessels are ready and start booking? In addition, can the officer's be paid salaries from the Corporation during these activities (it could be six months, or more)?

Any input would be appreciated.

[Davc]

If business can't provide the service until the boats are ready to sail, then everything is either start up or capitalized as part of the cost of the boats. Including salaries, which can be paid assuming the money is their.