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What your first year costs, by type of business

Forming the business is the cheap part. Here's a rough budget for the whole first year for ten common kinds of business, from government data, industry surveys and published prices.

By FormCost editorial team · Reviewed by our founder, an attorney by training with an MBA, who is part of the editorial team · Last reviewed October 30, 2026 · How we check sources

Planning ranges, not quotes. Rent, wages, permits and insurance vary a lot by state and city. Use these to size your savings or loan, then replace each line with your own quotes.

At a glance (typical case)

Kind of businessYear-one costCash before you openYear-one range
Home-based service or freelancer$6k$3k$1k–$25k
Online store$23k$16k$2k–$120k
Local retail shop$210k$110k$63k–$670k
Restaurant or café$890k$480k$360k–$1.8M
Food truck$130k$83k$41k–$330k
Salon or barbershop$280k$160k$11k (booth rent)–$640k
Car washabout $1M project$130k–$225k of your own cash$11k (mobile)–$4.8M
Contractor or trades$130k$72k$9k–$340k
Professional office$97k$34k$7k–$270k
Small nonprofit$5k$2k$1k–$47k

What moves the number most

By type of business

Tap a type to open its line-by-line budget.

Home-based service or freelancer$6k typical year-one cost

One person working from home: consulting, design, tutoring, bookkeeping.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Local business license / DBA · once$100$0–$500once
Insurance · yearly$1.4k$300–$3.1kyearly
Workspace · yearly$0$0–$3kyearly
Equipment (computer, phone, desk) · once$1.5k$500–$4konce
Software and website · yearly$900$300–$1.8kyearly
Marketing · yearly$1.2k$0–$6kyearly
Professional fees (tax prep, bookkeeping) · yearly$500$0–$3.8kyearly
Phone and internet (business share) · yearly$600$0–$1.8kyearly
Year-one cost$6.3k$1.2k–$25k
Cash to line up before opening$2.9k$600–$15k

What moves it

  • Whether clients require professional liability insurance (about $88 a month on average).
  • Coworking instead of home: a dedicated desk starts at about $250 a month.
  • Electing S-corp tax treatment adds payroll service and a corporate return. S-corp calculator →

Calculators: LLC cost by state · S-corp calculator · Quarterly tax calculator

Based on: Insureon; Google Workspace, Squarespace and QuickBooks price pages; National Society of Accountants; WeWork. Full sources

Online store$23k typical year-one cost

Selling products online from home through Shopify, Etsy or Amazon.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Sales tax registration and local license · once$100$0–$500once
Insurance · yearly$1.1k$500–$2.9kyearly
Storage / fulfillment space · yearly$0$0–$6kyearly
Equipment (camera, shipping scale, printer) · once$1k$300–$3konce
Inventory / product costs (year one) · once$13k$0–$50konce
Software and platform fees · yearly$1.6k$400–$4.8kyearly
Marketing (ads, samples) · yearly$6k$600–$30kyearly
Payroll (part-time helper, high only) · yearly$0$0–$20kyearly
Professional fees · yearly$500$0–$5.4kyearly
Year-one cost$23k$1.9k–$120k
Cash to line up before opening$16k$500–$89k

What moves it

  • Inventory and ads are most of the bill. Platform plans are about $29–$79 a month.
  • Card fees of about 2.9% + 30¢ per sale come out of revenue.
  • Register for sales tax in your state before you sell taxable goods.

Calculators: LLC cost by state · Quarterly tax calculator

Based on: Shopify, Amazon and Stripe price pages; Insureon; a Shopify survey of 300 owners (first-year spend about $40k, product costs 31.6%). Full sources

Local retail shop$210k typical year-one cost

An independent shop of about 1,500 sq ft in a neighborhood or strip center, with two staff.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Licenses and permits · once$1k$100–$5konce
Rent (annual base rent) · yearly$38k$13k–$150kyearly
Security deposit (about 1-2 months) · once$6.3k$1.1k–$25konce
Build-out, fixtures, signs · once$44k$12k–$200konce
Opening inventory · once$28k$15k–$85konce
Insurance (excl. workers comp) · yearly$1.1k$1.1k–$2.5kyearly
Payroll incl. employer taxes · yearly$77k$17k–$150kyearly
Workers' comp · yearly$800$200–$1.7kyearly
Software and POS · yearly$1.2k$500–$3kyearly
Marketing incl. grand opening · yearly$10k$1k–$25kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Utilities (electric + other) · yearly$4.1k$1.6k–$9.2kyearly
Year-one cost$210k$63k–$670k
Cash to line up before opening$110k$31k–$490k

What moves it

  • Rent per sq ft, and whether the lease adds taxes and maintenance (NNN).
  • How much stock you open with.
  • A space that's already fitted out for retail versus a bare shell.

Calculators: LLC cost by state · Cost of hiring · Licenses and permits

Based on: Cushman & Wakefield retail rents (Q4 2025); BLS wages (May 2025); Insureon; Oregon workers' comp study; a franchise disclosure for a 3,500–4,500 sq ft store; EIA electricity data. Full sources

Restaurant or café$890k typical year-one cost

An independent restaurant or café of about 3,000 sq ft and 120 seats, based on a survey of independent operators. Staff wages are the biggest yearly cost, but sales pay for most of them once you're open. Food cost (about 32% of sales) isn't included.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Licenses and permits (health, food service, liquor, building) · once$5k$500–$25konce
Construction / build-out · once$200k$70k–$470konce
Kitchen and bar equipment · once$95k$40k–$200konce
Pre-opening expenses (training, opening marketing) · once$20k$10k–$50konce
Opening food inventory · once$10k$5k–$20konce
Security deposit · once$13k$5.4k–$35konce
Rent · yearly$78k$32k–$210kyearly
Insurance (excl. workers comp) · yearly$4k$2.3k–$5.3kyearly
Payroll (wages + benefits) · yearly$410k$170k–$690kyearly
Workers' comp · yearly$4.5k$1.9k–$7.5kyearly
POS and software · yearly$3k$1.2k–$8kyearly
Marketing (ongoing) · yearly$12k$3k–$40kyearly
Professional fees · yearly$8.1k$3k–$13kyearly
Utilities · yearly$24k$14k–$50kyearly
Year-one cost$890k$360k–$1.8M
Cash to line up before opening$480k$150k–$1.3M

What moves it

  • Taking over a former restaurant with its hood and grease trap versus building new. Construction was about 36–73% of startup cost in the survey.
  • Liquor licenses: modest in some states, very expensive in quota states.
  • The survey dates from 2018, and building costs have risen since, so treat these as floors.

Calculators: LLC cost by state · Cost of hiring · Licenses and permits

Based on: RestaurantOwner.com cost-to-open survey; National Restaurant Association labor and food-cost ratios (2024 data); Insureon; Florida DBPR fee schedule (example); EIA. Full sources

Food truck$130k typical year-one cost

One used truck and one cook. Renting a truck (about $2,000–$3,000 a month) is the low-cost start.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Permits and licenses (first year) · once$1.9k$600–$17konce
Truck (used typical, new high) · once$60k$0–$150konce
Truck rent instead of buying ($2k–$3k/mo) · yearly$0$0–$24kyearly
Serveware, POS, small equipment · once$1k$300–$3konce
Opening inventory · once$2.5k$2k–$3konce
Insurance (excl. workers comp) · yearly$3.7k$2.9k–$4.4kyearly
Payroll incl. employer taxes · yearly$41k$0–$98kyearly
Workers' comp · yearly$400$0–$1,000yearly
Commissary kitchen · yearly$9.6k$4.8k–$18kyearly
Fuel and maintenance · yearly$6.5k$4k–$10kyearly
Marketing · yearly$3k$500–$8kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Propane / generator · yearly$2.4k$1.2k–$4.8kyearly
Year-one cost$130k$41k–$330k
Cash to line up before opening$83k$6.1k–$250k

What moves it

  • Used ($40k–$80k) versus new ($75k–$150k) versus renting.
  • City permits: about $600 a year in Indianapolis versus $17,000 in Boston in a 2018 study.
  • Commissary kitchen fees, which many cities require.

Calculators: LLC cost by state · Cost of hiring

Based on: Square food truck cost guide; U.S. Chamber Foundation "Food Truck Nation"; Insureon; BLS. Full sources

Salon or barbershop$280k typical year-one cost

A 1,200 sq ft independent shop with three stylists on payroll. Renting a booth or suite (from about $400 a month) is the low-cost start.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Salon/shop license and local permits · once$500$95–$2konce
Build-out and site costs · once$70k$0–$200konce
Fixtures, chairs, equipment · once$40k$2k–$55konce
Opening inventory and supplies · once$4.7k$1k–$6konce
Security deposit · once$5.1k$400–$14konce
Rent (booth/suite or shop) · yearly$30k$4.8k–$84kyearly
Insurance (excl. workers comp) · yearly$1.3k$900–$2.7kyearly
Payroll incl. employer taxes · yearly$120k$0–$230kyearly
Workers' comp · yearly$1.2k$0–$2.3kyearly
Booking/POS software · yearly$1.2k$300–$3kyearly
Marketing incl. grand opening · yearly$5k$500–$25kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Utilities · yearly$4.7k$0–$8.7kyearly
Year-one cost$280k$11k–$640k
Cash to line up before opening$160k$4.1k–$460k

What moves it

  • Booth rent, commission or W-2 staff. This is the biggest swing.
  • Plumbing for shampoo bowls, and the build-out.
  • State shop and personal licenses. Florida's salon license is $95.

Calculators: LLC cost by state · Cost of hiring

Based on: Great Clips franchise disclosure (published investment range); Insureon; Florida DBPR; Vagaro booth-rent guide; BLS. Full sources

Car washabout $1M project typical year-one cost

Most car washes are real estate projects financed with loans. Mobile detailing is the low-cost start. A small self-serve site runs roughly $0.6M–$1.5M (our estimate), and a new express tunnel about $4M or more.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Project cost (land, building, equipment, soft costs) · once$900k$4.5k–$4Monce
Operating capital · once$25k$0–$100konce
Insurance · yearly$8k$3.5k–$25kyearly
Payroll · yearly$16k$0–$310kyearly
Chemicals, utilities, other variable costs · yearly$41k$1.5k–$300kyearly
Marketing · yearly$4.7k$500–$30kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Year-one cost$1M$11k–$4.8M
Your own cash, if financed (10–20% equity + operating capital + reserve)$130k–$225kexpress tunnel: about $0.7M–$1.2M

What moves it

  • Land and site work, which can be about half of construction cost.
  • SBA loans need at least 10–20% of the project in your own cash, plus operating capital: the car wash industry association suggests about $25k for a self-serve wash and $100k for an express tunnel.
  • Loan payments aren't included above, and they're usually the largest yearly cost.

Calculators: LLC cost by state · Cost of hiring

Based on: Auto Laundry News (2025 construction costs and self-serve survey); International Carwash Association via Professional Carwashing & Detailing; SBA SOP 50 10 8.1; BLS. Self-serve project cost is our estimate. Full sources

Contractor or trades$130k typical year-one cost

A small remodeling or trade business with a truck and one helper.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
State license and bond · once$600$100–$2konce
Work vehicle · once$44k$0–$68konce
Tools and equipment · once$10k$3k–$30konce
Shop or yard rent · yearly$0$0–$24kyearly
Insurance (excl. workers comp) · yearly$4.8k$1.1k–$7.1kyearly
Payroll incl. employer taxes · yearly$51k$0–$170kyearly
Workers' comp · yearly$2.2k$0–$7.1kyearly
Software · yearly$1.2k$500–$3kyearly
Marketing · yearly$3k$500–$12kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Fuel and phone · yearly$6k$3k–$12kyearly
Year-one cost$130k$8.7k–$340k
Cash to line up before opening$72k$3.6k–$220k

What moves it

  • Workers' comp by trade: about $2.37 per $100 of payroll for electricians and $9.64 for roofers (state medians).
  • Buying or financing the truck. New pickups average about $44k (mid-size) to $68k (full-size).
  • State license and bond rules. California charges $650 in license fees and requires a $25,000 bond.

Calculators: LLC cost by state · Cost of hiring

Based on: Kelley Blue Book (Sept 2026); California Contractors State License Board; Insureon; Oregon workers' comp study; BLS. Full sources

Professional office$97k typical year-one cost

An agency or bookkeeping firm with a 500 sq ft office and one assistant. Running a crew instead? Contractor or trades.

ItemTypicalRangeWhen
Forming the LLC (state fees) · once$100$35–$900once
Professional and local licenses · once$300$100–$1konce
Office rent · yearly$19k$3k–$67kyearly
Security deposit · once$3.2k$0–$11konce
Furniture and fit-out · once$5k$0–$30konce
Computers and equipment · once$4k$1.5k–$12konce
Insurance (excl. workers comp) · yearly$3.1k$900–$4.1kyearly
Payroll incl. employer taxes · yearly$51k$0–$110kyearly
Workers' comp · yearly$52$0–$100yearly
Software · yearly$2.4k$900–$6kyearly
Marketing · yearly$3k$500–$15kyearly
Professional fees · yearly$3k$500–$8.1kyearly
Utilities and internet · yearly$1.9k$0–$5.3kyearly
Year-one cost$97k$7.4k–$270k
Cash to line up before opening$34k$2.1k–$160k

What moves it

  • An office (about $39 per sq ft a year on average) versus coworking.
  • Hiring your first employee.
  • Professional liability insurance and any professional-firm license.

Calculators: LLC cost by state · Cost of hiring · S-corp calculator

Based on: Cushman & Wakefield office rents (Q3 2026); WeWork; Insureon; BLS. Full sources

Small nonprofit$5k typical year-one cost

A volunteer-run charity with under about $50,000 a year in gross receipts.

ItemTypicalRangeWhen
State formation + IRS exemption fee · once$300$300–$800once
Charitable solicitation registration · yearly$75$10–$1.5kyearly
Insurance · yearly$1.3k$500–$2.5kyearly
Workspace · yearly$0$0–$3kyearly
Equipment · once$500$0–$2konce
Website, donation and accounting software · yearly$900$200–$1.8kyearly
Fundraising and outreach · yearly$1k$0–$5kyearly
Payroll (part-time staff, high only) · yearly$0$0–$25kyearly
Workers' comp · yearly$0$0–$300yearly
Accounting and annual return · yearly$500$0–$5.4kyearly
Year-one cost$4.6k$1k–$47k
Cash to line up before opening$1.8k$300–$25k

What moves it

  • Paid staff, if any.
  • Charitable solicitation registration in each state where you raise money. In Florida it's $10–$75 a year at this size.
  • Moving past $50,000 in receipts means a Form 990-EZ or 990 instead of the free 990-N.

Calculators: Nonprofit cost by state · Nonprofit vs LLC

Based on: FormCost nonprofit fee data; IRS; Florida Statutes 496.405; Insureon; National Society of Accountants. Full sources

Before you count on these numbers

Sources (56)

Every figure, with its exact source and our confidence in it, is traced in our working notes. Rounded for display. Marketing budgets and the self-serve car wash project cost are our own estimates.

General information, not financial, legal or tax advice. These are planning ranges, not quotes, checked October 2026. Totals cover an owner-run business's typical costs and exclude the owner's pay, loan payments and the cost of goods sold.