Preliminary expenses of a limited liability company are

Preliminary expenses of a limited liability company are a type of fictitious assets. These are expenses incurred before the company starts its operations, such as legal fees, incorporation fees, and other expenses related to setting up the business. Since these expenses are not related to any tangible or physical asset, they are categorized as fictitious assets. These expenses are expected to provide long-term benefits to the company, but they cannot be easily quantified or assigned a definite value. Therefore, preliminary expenses are considered as intangible assets that represent the cost of organizing the company and bringing it into existence. These expenses are amortized over a period of time and charged to the company's income statement as a recurring expense.