How Much Does It Cost to Start a Accounting Firm?
Last updated: May 2026
National Average
Low
$7,000
Medium
$20,000
High
$46,000
Start an accounting firm offering tax preparation, bookkeeping, auditing, and financial advisory services.
Time to Launch
1-4 months
Profit Margins
35-60%
Break-Even Timeline
4-12 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Accounting Firm in Nationally
Budget:
$1,500
$2,000
$2,500
$1,200
$6,000
$600
$1,500
$2,500
$800
Options
Employees:
Startup Costs
$18,600
Monthly Costs
$5,000
First Year Total
$78,600
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $5,390 | $15,400 | $35,420 | $50 | 7.0% |
| West Virginia | $5,390 | $15,400 | $35,420 | $100 | 6.0% |
| Oklahoma | $5,600 | $16,000 | $36,800 | $100 | 4.5% |
| Alabama | $5,670 | $16,200 | $37,260 | $200 | 4.0% |
| Arkansas | $5,670 | $16,200 | $37,260 | $45 | 6.5% |
| North Dakota | $5,740 | $16,400 | $37,720 | $135 | 5.0% |
| Iowa | $5,810 | $16,600 | $38,180 | $50 | 6.0% |
| Kansas | $5,810 | $16,600 | $38,180 | $160 | 6.5% |
| Missouri | $5,810 | $16,600 | $38,180 | $50 | 4.2% |
| South Dakota | $5,810 | $16,600 | $38,180 | $150 | 4.2% |
| Kentucky | $5,880 | $16,800 | $38,640 | $40 | 6.0% |
| Louisiana | $5,880 | $16,800 | $38,640 | $100 | 5.0% |
| Wyoming | $5,880 | $16,800 | $38,640 | $100 | 4.0% |
| Nebraska | $5,950 | $17,000 | $39,100 | $105 | 5.5% |
| Indiana | $6,020 | $17,200 | $39,560 | $95 | 7.0% |
| Michigan | $6,160 | $17,600 | $40,480 | $50 | 6.0% |
| Ohio | $6,160 | $17,600 | $40,480 | $99 | 5.8% |
| New Mexico | $6,300 | $18,000 | $41,400 | $50 | 4.9% |
| South Carolina | $6,300 | $18,000 | $41,400 | $110 | 6.0% |
| Wisconsin | $6,370 | $18,200 | $41,860 | $130 | 5.0% |
| Tennessee | $6,440 | $18,400 | $42,320 | $300 | 7.0% |
| Texas | $6,440 | $18,400 | $42,320 | $300 | 6.3% |
| Georgia | $6,580 | $18,800 | $43,240 | $100 | 4.0% |
| Minnesota | $6,580 | $18,800 | $43,240 | $155 | 6.9% |
| Illinois | $6,650 | $19,000 | $43,700 | $150 | 6.3% |
| Idaho | $6,720 | $19,200 | $44,160 | $100 | 6.0% |
| North Carolina | $6,720 | $19,200 | $44,160 | $125 | 4.8% |
| Pennsylvania | $6,720 | $19,200 | $44,160 | $125 | 6.0% |
| Montana | $6,790 | $19,400 | $44,620 | $35 | 0.0% |
| Utah | $7,000 | $20,000 | $46,000 | $54 | 6.1% |
| Delaware | $7,280 | $20,800 | $47,840 | $110 | 0.0% |
| Nevada | $7,350 | $21,000 | $48,300 | $425 | 6.8% |
| Virginia | $7,490 | $21,400 | $49,220 | $100 | 5.3% |
| Vermont | $7,630 | $21,800 | $50,140 | $125 | 6.0% |
| Arizona | $7,700 | $22,000 | $50,600 | $50 | 5.6% |
| Colorado | $7,700 | $22,000 | $50,600 | $50 | 2.9% |
| Florida | $7,840 | $22,400 | $51,520 | $125 | 6.0% |
| Oregon | $7,840 | $22,400 | $51,520 | $100 | 0.0% |
| Rhode Island | $7,840 | $22,400 | $51,520 | $150 | 7.0% |
| Maine | $7,980 | $22,800 | $52,440 | $175 | 5.5% |
| New Hampshire | $8,190 | $23,400 | $53,820 | $102 | 0.0% |
| Washington | $8,260 | $23,600 | $54,280 | $200 | 6.5% |
| Connecticut | $8,330 | $23,800 | $54,740 | $120 | 6.3% |
| Maryland | $8,470 | $24,200 | $55,660 | $100 | 6.0% |
| New Jersey | $8,750 | $25,000 | $57,500 | $125 | 6.6% |
| Alaska | $8,890 | $25,400 | $58,420 | $250 | 0.0% |
| New York | $9,730 | $27,800 | $63,940 | $200 | 4.0% |
| California | $10,640 | $30,400 | $69,920 | $70 | 7.3% |
| Massachusetts | $10,780 | $30,800 | $70,840 | $500 | 6.3% |
| Hawaii | $13,510 | $38,600 | $88,780 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$15,400
- West Virginia$15,400
- Oklahoma$16,000
- Alabama$16,200
- Arkansas$16,200
5 Most Expensive States
- Hawaii$38,600
- Massachusetts$30,800
- California$30,400
- New York$27,800
- Alaska$25,400
Frequently Asked Questions
Starting an accounting firm typically requires a low-to-mid five-figure investment, covering CPA licensing, professional liability insurance, tax software, and initial marketing. Home-based practices can launch at the lower end of that range.
You don't need a CPA license to offer bookkeeping services, but you must be a licensed CPA to offer auditing services or sign tax returns as a paid preparer. Using 'CPA' in your firm name typically requires a licensed CPA as the majority owner.
Drake Tax (https://www.drakesoftware.com/products/drake-tax/) is popular for solo practices, billed as an annual subscription scaled to feature tier. Lacerte and ProSeries are preferred by larger firms. UltraTax is common at mid-size firms. All handle individual and business returns.
A solo CPA charging a healthy three-figure hourly rate can be profitable with a few dozen regular business clients or roughly 100-150 individual tax clients. The key is mix — monthly bookkeeping retainers provide predictable revenue, while tax season creates seasonal peaks.