expenses for startups
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Being a business owner means being independent. We find many benefits in business ownership, we eager to independence it brings but when we fall from our dreams and to the reality, it comes with a lot of hassle and numerous calculations.

If you have taken out a short term business loan or any other kind of it and you have your business plan ready, don’t hurry to celebrate your independence. Starting a business is a complicated process consisting of many details and every small step you make can cost you good money. That’s what you have to take into account before hanging an “OPEN” sign on a door where your business lives in.

Permits and Licenses

You want your business to be legal, don’t you? Then after checking all the necessary small business loan application terms, consider hiring professional to make everything according to the law standards. It’s especially actually, if you’re going to open an LLC.

For example, if you’re starting an alcohol business, you have to be ready to many additional expenses for getting the necessary permits. Also, if you want to do online sales together with offline ones (you sell something on your website, but you want your consumers to have an opportunity to get products directly to their doors), you should keep in mind a need of different permit to be able to perform off-site sales.


As a new entrepreneur, you may think that if you aren’t making much money there’s not so much to tax. But American tax system is quite complicated and there are many details you have to consider before starting a business. If you are self-employed you have to pay a so-called self-employment tax. It’s not worth hoping that it’s not a significant amount of money. Get ready that this tax will eat around 7-8% of your gross income. If you’re starting an LLC, you have to pay an additional special tax. Keep in mind that some taxes can be called fees.


You may not need a business insurance in the very beginning when more likely, you have nothing to insure. But when your business will get a little bigger, it’s worth considering insuring because you never know what may happen. If you have special expensive equipment and something will happen to it, business insurance will help to cover expenses and your business won’t be so much damaged.

If there’s a chance that in case of an unexpected issue a consumer can sue you, it’s worth considering liability insurance. Basically, there are many options for start ups. Don’t hurry to make a decision, maybe in your situation you not necessarily need business insurance. But in any case, it’s better to ask a consultant and check your options. It’s always better to protect what you own than simply hope that nothing wrong happens.


If you decided to start own business, for sure you’re ready to spend time and putting your efforts in it. But it’s always worth keeping in mind that it’s a complicated job consisting of many steps. All the risks are on you and if something goes wrong, there’s no one else to blame.

You must be ready that your business won’t become successful and profitable as quickly as you would like it to and you have to plan another source of income to provide yourself and your family. Make a detailed business plan, read business literature, communicate and talk to people who already have some experience and ready to share it. We listed only a few hidden costs but indeed, there’s a lot. Try to plan and calculate everything as much as possible and remember that you only can avoid mistakes when you do nothing.