For the wandering entrepreneur among us, there is always a desire to start one’s own business. Potentially unlimited income, independence, being your own boss, realizing your creative juices, making a mark on your community, and building up the future for your family and staff, are all important factors. More and more people are capturing this entrepreneur spirit. But what are the set up costs for a business?
LLC or Corporation
First, it is recommended you set up an LLC or Corporation. It typically costs about $100 by doing so online with your state’s Secretary of State. You fill-out articles of incorporation, typically online with basic information as to the name of your business, location, initial registered agent, and incorporator.
If your principal place of business or residence is in the in another state, you have to have a local registered agent. That typically costs $100-$200.
Assuming you do not have a brick-and-mortar operation, there is the set up cost of developing a website, registering your URL, having a hosting service, and possibly hiring a graphic artist for the images on your site.
If you are using photos, a number of online photo services usually sell them in the neighborhood of $50.
Advertising on Google can be very expensive if you are not going the organic search method. That could easily cost between $100 and $1000 a day.
Then there it is the requirement of having office furniture, software, computers, copying and fax machines, scanners, stationery, business cards, and even signage.
Of course, if you set up a brick-and-mortar store, it can be quite expensive including lease and security deposits, monthly rent, tenant improvements, and much more elaborate office furniture.
Franchises are a good idea, because it means you do not have to invent the wheel. The cost can be anywhere from $25,000 to $2 million for the larger franchises. It has the benefit of built-in advertising, name recognition and customers, but it can be quite expensive. Also a good idea is to make sure you are in a geographical area that is not too competitive.
If you wish to trademark your name, the United States Patent and Trademark Office usually charges about $275 online.
All in all, the set up cost for a business can be expensive, but in the long run, isn’t it worth it?