How much does it cost to start a business in your state?
Get a realistic breakdown of filing fees, licenses, permits, and insurance — tailored to your business type and location. Takes 30 seconds.
1
Business Type
2
State
3
Industry
4
Results
Step 1 of 3
What type of business are you starting?
Your business structure affects filing fees, liability, and ongoing compliance costs.
Step 2 of 3
Which state will you operate in?
Filing fees and annual requirements vary dramatically by state. California charges $800/year; Wyoming charges $52.
Step 3 of 3
What industry are you in?
Industry affects your required permits, licenses, and insurance minimums.
Your Estimate
✓ Calculation Complete
$0
Estimated first-year startup costs
⚠️ Industry-Specific Requirements
Next Step
Get your full personalized business blueprint with AI-powered guidance
Beyond cost estimates — get your exact legal requirements, compliance calendar, financial projections, and a step-by-step launch roadmap. Free to start, ready in 2 minutes.
Free to start · No credit card required · 2 minute setup
Estimates are based on typical 2026 ranges for your selections. Actual costs vary. Always verify with your state's Secretary of State office and a local business attorney.
Frequently Asked Questions
How much does it cost to start a business?
+
Startup costs vary widely by state and business type. A sole proprietorship can cost as little as $50–$200 in filing fees. An LLC typically runs $500–$3,000 in the first year (filing, licenses, and basic insurance). Use the calculator above for a realistic estimate based on your specific situation.
What are the main costs when starting a business?
+
The primary startup costs include: (1) State filing fees to register your entity ($50–$800), (2) Business licenses and permits ($50–$5,000 depending on industry), (3) Business insurance ($500–$15,000/year), (4) Equipment and initial supplies, and (5) Marketing and website costs. Some states like California also have mandatory annual minimum taxes ($800/year).
Which state is cheapest to start a business?
+
The cheapest states for filing include Kentucky ($40 LLC fee), Arizona ($50 with no annual fee), and Mississippi ($50 with no annual report). However, you typically need to register in the state where you operate — registering in a cheap state and doing business elsewhere usually requires a foreign qualification fee anyway, so the savings are often offset.
Do I need a business license?
+
Almost all businesses need at least a general business license from their city or county ($25–$500). Many states require a state-level business license on top of that. Industry-specific licenses (food handler, contractor, cosmetology, real estate) are separate and required for regulated professions. Fines for operating without a required license can be steep.
LLC vs Sole Proprietorship — which costs less?
+
A sole proprietorship has the lowest upfront cost — often just a DBA filing for $10–$100. An LLC costs more ($50–$500 filing fee plus annual fees) but provides personal liability protection. If you're earning real revenue or carrying any risk (contracts, employees, physical locations), the LLC's protection is usually worth the extra cost.
What is an EIN and do I need one?
+
An EIN (Employer Identification Number) is your business's federal tax ID, issued by the IRS. It's free to get. You need one if you have employees, operate as a corporation or partnership, or want to open a business bank account. Even sole proprietors often get one to avoid using their Social Security Number on business documents.