Small Business Startup Tax Cost Estimator

US Small Business Startup Tax Cost Estimator

Provide some basic details about your planned business.

Planned Business Structure:

The structure affects registration requirements and fees.

Primary Operating State (2-letter abbreviation):

State filing fees vary significantly. Enter your primary state.

Primary Operating City:

Local license and permit fees may apply. Enter your primary city.

Planned Number of Employees (Initially):

Enter 0 if you don't plan to hire employees initially. This affects EIN and payroll tax registration.

Estimate the potential costs for initial tax and regulatory requirements. **You will need to research the actual fees for your specific location and business type.**

Estimated State Business Registration / Filing Fee ($):

Cost to register your business entity (e.g., LLC formation fee). Sole Proprietors often have low or no state filing fees unless registering a DBA.

Estimated Total State & Local License/Permit Fees ($):

Estimate for required state and local licenses/permits based on your activity and city/county. These vary greatly.

Cost Paid for EIN Assistance ($):

Enter cost if you paid a third party for EIN application. **Getting an EIN directly from the IRS is FREE.**

Estimated Initial Accounting / Legal Setup Fees ($):

Estimate for professional help with initial setup (optional but common).

Other Estimated Startup Tax/Compliance Fees ($):

Any other initial fees related to tax or regulatory setup not covered above.

Estimated Startup Tax & Compliance Costs

Based on the estimated fees you provided.

Cost Category	Estimated Cost
Estimated State Business Registration / Filing Fee	$0.00
Estimated Total State & Local License/Permit Fees	$0.00
Cost Paid for EIN Assistance	$0.00
Estimated Initial Accounting / Legal Setup Fees	$0.00
Other Estimated Startup Tax/Compliance Fees	$0.00
TOTAL ESTIMATED STARTUP COST	$0.00

This total is an estimate based on the fees you entered. Actual costs for licenses and permits vary significantly by location and specific business activities.

Important Considerations for New Businesses:

EIN is FREE from the IRS: You do not need to pay a third party to get an Employer Identification Number. Apply directly on the IRS website.
Ongoing Costs: Many licenses and permits require annual renewal fees. Be sure to budget for these recurring costs.
Sales Tax Permit: If your business sells taxable goods or services, you will likely need to register for a sales tax permit in each state where you have nexus and collect/remit sales tax. This is separate from a general business license.
Estimated Income Taxes: As a business owner, you will need to pay estimated income taxes (federal and potentially state) throughout the year on your business profits. These are not included in the startup costs estimated here.
Payroll Taxes: If you plan to hire employees, you will need to register for federal and state payroll tax accounts and understand your obligations for withholding and paying payroll taxes.
Professional Advice: Consult with a CPA or tax advisor to understand all your tax obligations and plan appropriately.

This estimator focuses on initial fees related to establishing the business entity and basic licenses/permits. It does not cover all potential startup expenses or ongoing tax liabilities.

This tool provides an estimation based on user-input fees. Actual startup costs vary widely.