How Much Does It Cost to Start a Company in the U.S.? A Quick Guide to Startup Costs!

How Much Does It Cost to Start a Company in the U.S.? Read This and You’ll Know Everything

In recent years, the United States-recognized as one of the world’s most dynamic economies-has remained a top destination for entrepreneurs and business owners. Whether it's tech startups, restaurant chains, or cross-border e-commerce platforms, more and more entrepreneurs are setting their sights on the U.S. market. However, launching a business in the U.S. is no easy task, especially when it comes to financial preparation. Many people are unclear about how much it really costs to start a company in the U.S. Below, we break down the main expenses you should consider.

1. Basic Company Registration Fees

Let’s begin with the basics company registration. In the U.S., common business structures include Limited Liability Companies LLCs, Corporations, and Partnerships. Among these, LLCs are the most popular among small and medium-sized business owners due to their flexibility in taxation and liability protection.

Take California as an example. The basic fees for registering an LLC include

Company name reservation fee $10

Filing fee $70

Annual tax $800 per year waived in the first year

Registered agent service fee $50-$300 per year, depending on the provider

If you're not a U.S. citizen or green card holder, you may also need to hire a lawyer to assist with the registration process. Legal fees typically range from $500 to $2,000.

2. Office Space and Rental Costs

For businesses requiring physical space, office rental can be a major expense. In high-demand cities like San Francisco, New York, and Los Angeles, commercial rents are particularly steep.

According to CBRE’s Q1 2025 report, the average downtown office rent in San Francisco is around $6.50 per square foot per month. If you plan to rent a 500-square-foot office, your monthly cost would be approximately $3,250-or nearly $40,000 annually.

However, if you opt for home offices or shared workspaces such as WeWork, the cost drops significantly. Monthly rates at WeWork start at around $350, making it ideal for startups and freelancers.

3. Labor Costs and Employee Salaries

Hiring employees in the U.S. is another significant expense. According to PayScale data, the average hourly wage in 2025 is about $29.50, while the median annual salary for full-time employees ranges between $60,000 and $80,000, depending on the industry and location.

For instance, a junior software engineer in Silicon Valley might earn over $100,000 per year, whereas the same role in Austin, Texas, could be closer to $80,000. Employers are also responsible for payroll taxes, including Social Security, Medicare, and state unemployment insurance, which typically amount to 7%-10% of an employee’s salary.

4. Business Licenses and Compliance Fees

In addition to company registration, most business types require a business license. Fees vary by state and city, generally ranging from $50 to $500. For example

A small business license in Phoenix, Arizona costs around $100

In San Diego, California, it may exceed $300

Certain industries-such as food services, healthcare, and finance-require additional permits and compliance checks, which can range from hundreds to thousands of dollars.

5. Tax and Accounting Service Fees

Running a business in the U.S. means complying with federal, state, and local tax laws. Hiring a professional accountant or using accounting software is essential.

On average, annual accounting fees for small businesses range from $1,000 to $5,000, depending on the complexity of the business. While tools like QuickBooks or Xero can help reduce costs, it’s still advisable to consult professionals regularly to ensure compliance.

6. Marketing and Advertising Budget

No matter how great your product is, marketing is crucial to gaining visibility. Digital marketing has become the mainstream approach in the U.S., with Google Ads, Facebook ads, and Instagram promotions being widely used.

According to Statista, in 2025, the average monthly digital marketing budget for small and midsize businesses in the U.S. ranges from $2,500 to $12,000. Traditional advertising methods-such as trade shows, TV commercials, or outdoor billboards-are more expensive.

7. Initial Capital and Operating Cash Flow

Finally, let’s look at the overall startup capital required. According to the U.S. Small Business Administration SBA, new businesses should prepare at least six to twelve months of operating expenses to cover initial losses.

For a small service-based business like a consulting firm or design studio, startup costs can range from $10,000 to $50,000. Retail stores or restaurants may require $100,000 to $500,000 or more.

Conclusion

The total cost of starting a business in the U.S. varies widely based on industry, location, and company size. It can range from tens of thousands to hundreds of thousands of dollars. The key lies in effective planning and cost control.

As the global economy continues to recover, the U.S. market remains full of opportunities. With thorough preparation, you too can realize your entrepreneurial dreams on this land of opportunity.