not at all, in most states the state and federal filing fees are only a few hundred bucks combined. You have to register with your secretary of state and the irs and you’re in business. More of course if you need licensing and overhead and insurance but not all businesses require these things.
Sure, pick a business. Once you file the paperwork, you need the actual infrastructure to make the business functional. That runs more than a couple hundred dollars.
Unless you’re a kid with a lawnmowing business borrowing dad’s lawnmower, you’re going to need a place of business and all the tools necessary to run said business. Even then you need a vehicle to get the lawnmower to and from jobsites. I guess you could borrow dad’s truck as well, but at that point you aren’t so much “running a business” as you are “doing chores for other people.”
For something like retail, you need a storefront and starting stock. To get into the storefront there are re-modeling costs since you can’t run a store out of a bare cement building with no fixtures.
For a professional office, you need the cerifications, and all the hardware and software needed for that, say you’re a CPA - there are computers and software involved.
Say you’re in a service industry like hair and nails, you again need a storefront and all the assorted equipment.
Oh, and insurance. And likely lawyers. Trademark searches on business names, things like that.
I came up with an invention, had to do all the patent filings, product searches, materials searches, proto-typing, etc. etc. all before going into production. That was $16,000 before I ever saw a dime. Thank god for tax credits.
All of that requires more than a couple hundred dollars.
Again, more than just paperwork. “Signing a lease” is just paperwork. What you do AFTER you sign the lease is what runs the business and you aren’t doing that on a couple hundred dollars.
"On average, small business owners spend $40,000 in their first full year. (Shopify)
The business formation fee (initial incorporation filing fee + report fees needed to maintain an LLC) is the least expensive at about $50 to $500. The most expensive cost can be equipment, typically $10,000 to $130,000. (Stripe, FreshBooks)
77 percent of startups without employees used personal funds to finance their business (Fed Small Business)
The top financial challenges for nonemployer startups are increased costs of goods, services and wages, and handling operating expenses and uneven cash flow. (Fed Small Business)
Average hourly pay for an administrative assistant is $22. (Salary)
Average cost to build a website using a website builder is $120 to $360 per year. (WebsiteBuilderExpert)
Average cost of adding a new employee to your payroll usually ranges from $4,000 to $20,000, not including employee salary and benefits. (Indeed)"
you’re picking out all the possible extra things you might do if you start certain kinds of businesses. None of this is required to own a business you literally have to fill out a few forms and you’re legal in most if not all states.
not at all, in most states the state and federal filing fees are only a few hundred bucks combined. You have to register with your secretary of state and the irs and you’re in business. More of course if you need licensing and overhead and insurance but not all businesses require these things.
You need to do a lot more than file paperwork to start a business. :)
i have started several successful businesses please educate me
Sure, pick a business. Once you file the paperwork, you need the actual infrastructure to make the business functional. That runs more than a couple hundred dollars.
Unless you’re a kid with a lawnmowing business borrowing dad’s lawnmower, you’re going to need a place of business and all the tools necessary to run said business. Even then you need a vehicle to get the lawnmower to and from jobsites. I guess you could borrow dad’s truck as well, but at that point you aren’t so much “running a business” as you are “doing chores for other people.”
For something like retail, you need a storefront and starting stock. To get into the storefront there are re-modeling costs since you can’t run a store out of a bare cement building with no fixtures.
For a professional office, you need the cerifications, and all the hardware and software needed for that, say you’re a CPA - there are computers and software involved.
Say you’re in a service industry like hair and nails, you again need a storefront and all the assorted equipment.
Oh, and insurance. And likely lawyers. Trademark searches on business names, things like that.
I came up with an invention, had to do all the patent filings, product searches, materials searches, proto-typing, etc. etc. all before going into production. That was $16,000 before I ever saw a dime. Thank god for tax credits.
All of that requires more than a couple hundred dollars.
that’s almost entirely just paperwork, and you clearly didn’t read my comment which carved out these kinds of expenses.
Again, more than just paperwork. “Signing a lease” is just paperwork. What you do AFTER you sign the lease is what runs the business and you aren’t doing that on a couple hundred dollars.
https://www.bankrate.com/loans/small-business/small-business-average-cost/
"On average, small business owners spend $40,000 in their first full year. (Shopify)
The business formation fee (initial incorporation filing fee + report fees needed to maintain an LLC) is the least expensive at about $50 to $500. The most expensive cost can be equipment, typically $10,000 to $130,000. (Stripe, FreshBooks)
77 percent of startups without employees used personal funds to finance their business (Fed Small Business)
The top financial challenges for nonemployer startups are increased costs of goods, services and wages, and handling operating expenses and uneven cash flow. (Fed Small Business)
Average hourly pay for an administrative assistant is $22. (Salary)
Average cost to build a website using a website builder is $120 to $360 per year. (WebsiteBuilderExpert)
Average cost of adding a new employee to your payroll usually ranges from $4,000 to $20,000, not including employee salary and benefits. (Indeed)"
you’re picking out all the possible extra things you might do if you start certain kinds of businesses. None of this is required to own a business you literally have to fill out a few forms and you’re legal in most if not all states.
Cited sources suck, don’t they?
https://www.lendingtree.com/business/startup-costs-by-industry/