How Much Does It Cost to Start a Business? (Price Guide)

There is no single price for starting a business, because the answer depends on what kind of business it is. A freelancer working from a laptop might launch with little more than software and registration fees. A restaurant needs a lease, a kitchen, staff, and months of working capital before the first sales come in.

The figure above comes from an owner survey reported by Business.org, checked on Oct 13, 2026. It covers spending over the whole first year. Treat it as a starting benchmark and read the model-specific tables below to find the cost that matches your plan.

The cost range changes sharply from one model to the next. Online stores and service businesses sit at the low end, while businesses with a physical location sit far higher.

The restaurant line shows a median together with the range most owners fell inside. Costs outside that range are possible, especially in expensive markets or when a building must be purchased.

A survey of owners found a clear gap between businesses that operate online only and those with physical operations.

Mobile and storefront businesses spend more because they carry costs an online business avoids, such as vehicles, equipment, and rent. Many of them also run an online presence, which adds to the total.

If you already know the kind of business, a figure for that trade is more useful than a general average.

Low-cost service work, such as dog walking, needs little equipment. Food businesses and shops with a physical location need much more, mainly for equipment, build-out, and inventory.

Legal setup is a small part of the budget for most businesses, but it is required.

Fees depend on your state, the business structure you choose, and your industry. Some regulated trades need extra permits that cost more. Check your state and city requirements before you budget, and consider asking a business attorney or a licensed accountant which structure suits your situation.

Most businesses carry some insurance. General liability coverage is one common type.

The right coverage depends on your risks, your contracts, and what your landlord or clients require. An insurance agent can quote options for your trade.

• Business model. Online, service, product, and storefront businesses have very different cost profiles.
• Location. Rent, licensing, and wages vary by state and city.
• Inventory and equipment. Product businesses often spend a large share of their budget here.
• Staff. Hiring from day one raises the budget well above a solo launch.
• Working capital. Cash to cover the months before revenue arrives is easy to underestimate.
• Professional help. Attorney, accountant, and design fees are optional but common.

Surveys and cost guides measure different things. One reports what owners actually spent in their first year. Another gives a range for a business model.

The first figure is an average from a group of respondents, so a few expensive launches can pull it up. The second is a range for one model, so it tells you more about that model than about business in general.

Start by listing every expense you will face before the first sale, then add a cushion for the months before revenue arrives. Get written quotes for the largest items, such as equipment or a lease. Separate one-time costs from monthly ones, since only the first group is a startup cost. Build a margin into the budget, because quotes and timelines tend to slip.