How to Start a Business: Complete Guide by Type (2026)
Step-by-step guides for starting each type of small business — with startup cost estimates, LLC formation costs, and licensing requirements.
Starting a business requires knowing your startup costs, choosing the right legal structure, and completing state registration. Choose your business type below to get a complete guide — including typical startup costs, LLC formation steps for your state, licensing requirements, and recommended tools.
Choose Your Business Type
Get a complete startup guide tailored to your industry.
Auto Repair Shop
Open an automotive repair shop or garage. Heavy equipment investment is required upfront, along with certifications, bay setup, and parts inventory.
Bakery / Coffee Shop
Start a bakery, coffee shop, or cafe. Includes equipment, build-out, inventory, and ongoing operating costs.
Bar / Brewery
Open a bar, pub, or craft brewery. Key costs include liquor license, draft systems, and build-out — with a very different cost profile from restaurants.
Cleaning Service
Start a residential or commercial cleaning business. Low startup costs with equipment, supplies, transportation, and marketing.
Coffee Shop
Open a specialty coffee shop or espresso bar. Covers espresso equipment, build-out, licensing, and ongoing supply costs.
Consulting / Professional Services
Start a consulting firm or professional services business. Low overhead with focus on expertise, marketing, and client acquisition.
Daycare / Childcare Center
Start a licensed daycare or childcare center. Unique costs include state licensing, safety and childproofing requirements, high liability insurance, and regulated staff-to-child ratios.
E-Commerce / Online Store
Launch an online store or e-commerce business. Covers platform costs, initial inventory, shipping setup, and digital marketing.
Food Truck
Launch a mobile food truck business. The truck purchase or build-out is the primary startup cost, plus permits, commissary kitchen, and operating expenses.
Gym / Fitness Studio
Open a gym, fitness studio, yoga studio, or CrossFit box. Covers equipment, space build-out, and operations.
Landscaping
Start a residential or commercial landscaping business. Equipment and a reliable truck are the primary investments, with relatively low ongoing overhead.
Restaurant / Food Truck
Open a restaurant or food truck. Covers kitchen equipment, build-out, licensing, and monthly operating expenses.
Retail Store / Boutique
Start a retail store, boutique, or shop. Includes fixtures, inventory, point-of-sale, and monthly operating costs.
Salon / Barbershop
Launch a hair salon, barbershop, or beauty studio. Includes stations, build-out, licensing, and supplies.
Choosing a Business Structure
The right legal structure protects your personal assets and affects how you pay taxes.
Sole Proprietorship
$0 to start- ✓No registration required
- ✓Simplest taxes (Schedule C)
- ✗Personal liability for debts
- ✗Hard to get business credit
Best for: freelancers testing a new idea before formalizing.
LLC (Recommended)
$35–$500- ✓Personal asset protection
- ✓Flexible tax treatment
- ✓Professional credibility
- –Annual report fees in most states
Best for: most small businesses with physical locations, employees, or clients.
S-Corporation
$100–$500+- ✓Personal asset protection
- ✓Tax savings on self-employment
- ✗More complex accounting
- ✗Requires payroll setup
Best for: profitable businesses earning $50K+ in net profit looking to reduce self-employment tax.
Ready to Form Your LLC?
These services handle the paperwork, registered agent, and state filing — starting from $0 + state fees.
LLC formation with registered agent, operating agreement, and compliance alerts. Plans start at $0 + state fees.
Free LLC formation (you pay state fees only). Includes registered agent service for first year, EIN, and banking setup help.
Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.
LLC Formation by State
Filing fees, processing times, and annual report costs vary significantly by state. Find your state below.
Not sure how much you'll need?
Before you form your LLC, make sure you have enough capital. Use our interactive startup cost calculator to estimate one-time costs, monthly expenses, and first-year budget by city.
Calculate Startup Costs →Get the startup checklist for your industry
We'll send you a detailed startup cost breakdown, LLC formation guide, and licensing checklist for your business type.
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