Startup Costs in California
California has the largest economy of any US state and massive consumer demand, but high taxes, strict regulations, and expensive real estate make it one of the costliest places to launch. The state's $800 annual LLC franchise tax applies even if your business earns zero revenue.
California (CA) by the Numbers
$70
$800
13.30%
7.25%
$16.90/hr
1.38x
1.30x
1.50x
What California's Numbers Mean for Founders
- State income tax tops out at 13.30%, one of the higher rates in the country.
- Labor costs run 30% above the national average, so factor higher payroll into your first-year budget.
- Commercial rent sits 50% above the national average, especially in Sacramento and the larger metros.
- Minimum wage is $16.90/hour - on the high end nationally, which lifts your entry-level labor costs.
California Cost Guides (10)
Bakery
How much does it cost to start a bakery in California? Expect $20,500-$345,500. California-specific
Cleaning Business
How much does it cost to start a cleaning business in California? Expect $2,100-$20,500. California-
Coffee Shop
Starting a coffee shop in California costs $34,500-$414,500. Full California cost breakdown with cit
Dog Grooming Business
Starting a dog grooming business in California costs $7,000-$138,000. Full California cost breakdown
Food Truck
California food truck startup costs: $38,500-$157,500. Complete guide to California licensing, hidde
Gym
Starting a gym in California costs $69,000-$691,000. Full California cost breakdown with city compar
Landscaping Business
How much does it cost to start a landscaping business in California? Expect $7,000-$69,000. Californ
Personal Training Studio
How much does it cost to start a personal training studio in California? Expect $27,500-$138,000. Ca
Pressure Washing Business
Starting a pressure washing business in California costs $4,100-$27,500. Full California cost breakd
Restaurant
Starting a restaurant in California costs $242,000-$1,036,500. Full California cost breakdown with c