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Average Startup Costs by Industry (2026 Data)

Real data from 53 business types across all 50 US states.

Data · 5 min read

We maintain startup cost data for 53 business types across all 50 US states — that's 2,650 unique data points. Here's what the numbers tell us about starting a business in 2026.

The Cheapest Businesses to Start

Service businesses dominate the low end. You can start a real, profitable business for under $10,000 — sometimes under $5,000. These businesses have low equipment costs, no storefront requirements, and can scale from a solo operation.

Business Low High
Dog Walking $500 $5,000
Notary Services $500 $5,000
Social Media Management $500 $5,000
Tutoring $500 $5,000
E-Commerce $500 $10,000
Pet Sitting $500 $3,000
Window Cleaning $1,000 $10,000
Consulting $1,000 $20,000
Web Design $1,000 $10,000
Graphic Design $1,000 $10,000

The Most Expensive Businesses to Start

Businesses that require a physical location, specialized equipment, or regulatory compliance sit at the high end. Restaurants, bakeries, and gyms need significant capital — but they also have higher revenue potential.

Business Low High
Restaurant $175,000 $750,000
Car Wash $50,000 $500,000
Gym $50,000 $500,000
Daycare $50,000 $500,000
Laundromat $100,000 $500,000
Coffee Shop $80,000 $350,000
Hair Salon $50,000 $250,000
Food Truck $50,000 $200,000
Nail Salon $40,000 $200,000
Bakery $20,000 $150,000

How Location Affects Costs

The same business can cost 70% more in one state versus another. Our state cost multipliers range from 0.84x (Mississippi, West Virginia) to 1.43x (Hawaii). Beyond the general cost of living, the biggest state-level variables are LLC filing fees ($40-$500), insurance requirements, and local permit costs.

States with no income tax — Florida, Texas, Nevada, Wyoming, Tennessee, South Dakota, Washington, Alaska, New Hampshire — are popular for entrepreneurs because more revenue becomes profit. But lower-tax states don't always mean lower startup costs: Texas has a $300 LLC fee, while Arizona charges just $50.

Want state-specific numbers?

We have detailed cost breakdowns for all 53 business types in every US state.

Browse All Businesses →

Key Takeaways

Most people overestimate startup costs. Of our 53 business types, 30 can be started for under $20,000. Service businesses are the most accessible — cleaning, lawn care, pressure washing, consulting, and personal training all start under $10,000 with "Easy" difficulty ratings. The businesses with the highest barriers are those needing physical space and equipment: restaurants, gyms, laundromats, and bakeries.

The smart move is starting lean. Many successful restaurant owners started as food trucks. Many gym owners started with personal training. Use our startup cost calculator to estimate your specific costs, and check your state's business requirements before you commit.

Frequently Asked Questions

What is the average cost to start a small business?
Based on our analysis of 53 business types, the median startup cost ranges from $2,000-$10,000 for service businesses to $50,000-$200,000 for food and retail businesses. The most affordable options are service-based businesses like cleaning, lawn care, and consulting.
What are the cheapest businesses to start?
The cheapest businesses to start are service-based: cleaning ($2,000-$10,000), lawn care ($3,000-$20,000), pressure washing ($3,000-$20,000), dog walking ($500-$3,000), and consulting ($1,000-$5,000). These require minimal equipment and no storefront.
Do startup costs vary by state?
Yes, significantly. Our data shows Hawaii and California have the highest cost multipliers (1.43x and 1.38x national average), while Mississippi and West Virginia are lowest (0.84x). LLC filing fees alone range from $40 in Kentucky to $500 in Massachusetts.