Are legal fees an expense?

Legal fees that are deductible Fees that are ordinary and necessary expenses directly related to the operation of your business (they must be entered on Form 1040, Annex C). Fees for resolving tax issues, advising, or preparing tax forms related to your business (should be included on Form 1040, Annex C). If you pay legal fees to get a divorce or because a family member is suing you for slander, your legal fees are purely personal and not deductible. So can your business deduct legal expenses from your taxes? The general view is that corporate legal fees are tax-deductible.

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