The full category list
Use this as a checklist against your draft budget: every empty row is a question, not a zero.
| Category | Examples | Why founders miss it |
|---|---|---|
| Formation | LLC filing ($35–$500 for standard flat-fee filings, Oct 2026), EIN (free), licenses | Publication requirements; local permits |
| Professional services | Attorney, accountant, bookkeeper setup | Quoted as one-time, needed ongoing |
| Location | Deposits, first/last rent, buildout, signage | Budget a deposit set by your lease — often one or more months' rent; check your state law |
| Equipment | Machinery, computers, furniture, vehicles | Installation, calibration, spare parts |
| Inventory | Opening stock, packaging, labels | Minimum order quantities exceed the plan |
| Technology | Website, domains, software subscriptions | Annual renewals clustering in month 12 |
| People | Wages, payroll taxes, benefits, contractors | Employer payroll taxes add ~7–10%+ atop wages |
| Marketing | Brand design, ads, photography, launch event | Ongoing content costs after launch |
| Insurance | Liability, property, workers' comp | Paid annually upfront |
| Operating reserve | 3–6 months of core burn | Treated as optional; it's the plan for surprises |
| Taxes | Quarterly estimates, sales tax setup | First-year self-employment tax shock |
One-time vs. recurring: the split that matters
Label every line one-time or recurring. One-time costs determine how much you need to open; recurring costs determine how long you survive. A $40,000 launch that's $35,000 one-time is a different business than one that's $35,000 per year — but a single-column budget shows both as “$40,000.”
Illustrative: a $2,500 espresso machine is once; $400/month in beans, milk, and maintenance is forever. Budget the machine from launch capital; budget the $400 from revenue.
Build yours
Start from our startup budget template, check every category above, and get three real quotes per major line. Then add a 20% contingency — we recommend it on every budget; it is the only line item guaranteed to be spent.
Assumptions and limits
- Illustrative figures are examples, not benchmarks.
- Education only — not financial advice.
Sources
Figures as of October 2026, verified October 28, 2026; reviewed whenever the official sources below change and at least quarterly.
- State LLC formation filing fees for standard flat-fee filings run from $35 (Montana) to $500 (Massachusetts), before any expedited or electronic-filing charges — filing electronically in Massachusetts, for example, brings the total to $520. Per-member states can run higher: Tennessee charges $50 per member (minimum $300, maximum $3,000). Fees verified October 28, 2026, against Secretary of State fee schedules (MT, MA, TN linked in Sources). Basis: Montana Secretary of State, Business Services Filing Fees (articles of organization, $35); Massachusetts Corporations Division filing fees and 950 CMR 112.29 (certificate of organization, $500, plus the $20 expedited fee on fax/electronic filings); Tennessee Secretary of State, Form SS-4270 (per-member fee).
- Startup-cost deductions: Internal Revenue Code §195 and IRS Publication 535, Business Expenses — up to $5,000 of startup costs and $5,000 of organizational costs deductible in the first year, each amount reduced once those costs pass $50,000, with the remainder deducted ratably over 180 months.
Common questions
What startup costs are tax deductible?
Many startup and organizational costs are deductible over time: under Internal Revenue Code §195, you can generally deduct up to $5,000 of startup costs and $5,000 of organizational costs in the first year — each $5,000 amount shrinks once those costs pass $50,000 — and the remainder is deducted ratably over 180 months. Confirm your situation with a tax professional.
What's the most commonly forgotten startup cost?
Deposits and prepaid expenses. Lease deposits, insurance premiums paid annually upfront, and software on annual plans all land in month one, before revenue does, and together they can double the cash you thought you needed to open. The category table above flags the same pattern in other rows: annual renewals clustering, minimum order quantities, and employer payroll taxes on top of wages.
One-time vs recurring — why does the split matter?
One-time costs set how much capital you need to open; recurring costs set your burn rate and how long the business survives. A $40,000 launch that is $35,000 one-time is a different business from one that is $35,000 every year, yet a single-column budget shows both as “$40,000.” Label every line one-time or recurring so both numbers stay visible.
Prepared with AI assistance; editorial approach and corrections are described in our method & editorial policy. Examples are illustrative, not case-study results. Last reviewed: . Educational content only — not financial, legal, or tax advice. Budgets shown are illustrative examples, not benchmarks; your costs will differ.