Cities in the USA with the Lowest Startup Costs

It is remarkable that Apple started from a garage with little up-front cash. Nevertheless, your startup may require more than just an empty space and a brilliant idea.  Creating a successful company needs some money to pay for recurring expenditures. This derails the entrepreneurs’ ability to bring their business ideas to life, especially when operating in an unfavorable business environment. Most cities in the USA are exorbitant while it comes to taxation. On the other hand, others are famously reputable for having an enabling tax regime and regulations. Below are the cities across the USA with the lowest start-up costs.

Chattanooga, Tennessee

Most entrepreneurs with ongoing investments in Chattanooga will concur that this is the most affordable place to start a company. Office space is accessible and hiring workers for your business will not drain your accounts without you noticing. The cost of hiring specialist employees for your business is not costly. Most notably, the average annual cost of running a new business in Chattanooga is about $236,600.

Texas City, Texas

Texas City is about 40 miles southeast of downtown Houston.  This deep-sea port city is famous for heavy industry. Port of Texas City is one of USA’s largest ports, making the City a shipping hot spot and a business hub. Furthermore, the town also has some of the state’s largest petrochemical manufacturing centers and refineries. This makes the city have a stable economic status that is an enabling environment for any business setup. For instance, the average revenue per business is $8.9 million while the total business revenue amounts to $23.4 billion per year.

Little Rock, Arkansas

Arkansas’ capital, Little Rock, is famous for being among the cities with the lowest startup costs in the country. Little Rock is more affordable than average in all metrics apart from one, filing fees. While filing fees in Little Rock is higher than average, it may not have any effect on a business. In particular, labor costs in this city are affordable. The cost of having five full-time employees is about 15% less than average from other major cities.

Wichita, Kansas

Wichita is Kansas’ largest city. Here, the filing fees are at $140 only. The cost of renting an office in this city is very reasonable. According to our research, you can get 1,000 square feet of office space for about $14,720 per year.

Moreover, the cost of hiring lawyers and accountants is lower as compared to other cities. However, the Bureau of Labor Statistics estimates that payroll costs may be a bit higher. Annually, five full-time employees will cost over $200,000 on average.

Greensboro, North Carolina

This is another city in the South offers existing entrepreneurs competitive rates for starting businesses. The recent payroll estimates for five employees $213,400 per year. The affordability of starting a business in this city attracts many entrepreneurs. It is easy to start a business in Greensboro than it is in other cities in North Carolina.

Louisville, Kentucky

Louisville, Kentucky ranks well among cities that have an enabling business environment. Notably, the annual cost of five full-time employees in Louisville is about $225,500. Therefore, the costs of labor in Louisville are about $6,000 less than the city with the highest labor costs in the country.

New Orleans, Louisiana

Operating a five-person startup in New Orleans will cost about $240,000 on average. Of course, this figure may change depending on what kind of business one wants to start. For example, if your business is massive on software developers, it may cost more. Notably, the average software developer in New Orleans costs about $76,000 compared to $43,300 per year for the average worker. Compared to other cities listed herein, New Orleans also has high property costs. The annual cost of renting 1,000 square feet of office space can cost nearly $19,000.

Memphis, Tennessee

The cost of employing five full-time employees is below the average in many cities in the US. It is about $2,900 below the average. Nevertheless, Memphis still cracks the list of best cities for startups with the annual cost of starting a business at just under $245,000. One major drawback of having a business startup in this city is an expensive office space cost.

Columbia, South Carolina

Columbia is another capital that has a business-enabling environment. Our experts estimate that it would cost just under $240,000 to get a startup off the ground in Columbia. A larger fraction of that cost would come from hiring full-time employees. The cost of having five full-time employees is $219,200 per year. Other essential costs including office space and legal and accounting costs are considerably low. Combined, these two metrics may eat up another $20,000 in the annual budget for a startup.

If you are planning to start a business and not sure which of these cities to select, contact us. We shall give you the most appropriate advice and help you rise to the peak.