Legitimate business expenses are costs that are necessary and reasonable for running a business. They must be related to operating or maintaining the business, and used primarily for generating taxable income or conducting business operations. Examples of legitimate business expenses include office supplies, employee wages, utilities, advertising costs, legal fees, insurance premiums, rent, and professional services. When making a purchase, ask yourself “Is this cost essential to running my business?” If it is, it’s likely a legitimate business expense!