How Much Does It Cost to Start a Consulting Business?
Last updated: May 2026
National Average
Low
$2,000
Medium
$9,000
High
$26,000
Start an independent consulting business providing expert advice and strategy to businesses in your area of expertise.
Time to Launch
2-8 weeks
Profit Margins
10-30% net
Break-Even Timeline
1-3 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Consulting Business in Nationally
Budget:
$400
$1,000
$1,500
$800
$600
$1,500
$1,000
$2,000
Options
Employees:
Startup Costs
$8,800
Monthly Costs
$2,000
First Year Total
$32,800
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $1,540 | $6,930 | $20,020 | $50 | 7.0% |
| West Virginia | $1,540 | $6,930 | $20,020 | $100 | 6.0% |
| Oklahoma | $1,600 | $7,200 | $20,800 | $100 | 4.5% |
| Alabama | $1,620 | $7,290 | $21,060 | $200 | 4.0% |
| Arkansas | $1,620 | $7,290 | $21,060 | $45 | 6.5% |
| North Dakota | $1,640 | $7,380 | $21,320 | $135 | 5.0% |
| Iowa | $1,660 | $7,470 | $21,580 | $50 | 6.0% |
| Kansas | $1,660 | $7,470 | $21,580 | $160 | 6.5% |
| Missouri | $1,660 | $7,470 | $21,580 | $50 | 4.2% |
| South Dakota | $1,660 | $7,470 | $21,580 | $150 | 4.2% |
| Kentucky | $1,680 | $7,560 | $21,840 | $40 | 6.0% |
| Louisiana | $1,680 | $7,560 | $21,840 | $100 | 5.0% |
| Wyoming | $1,680 | $7,560 | $21,840 | $100 | 4.0% |
| Nebraska | $1,700 | $7,650 | $22,100 | $105 | 5.5% |
| Indiana | $1,720 | $7,740 | $22,360 | $95 | 7.0% |
| Michigan | $1,760 | $7,920 | $22,880 | $50 | 6.0% |
| Ohio | $1,760 | $7,920 | $22,880 | $99 | 5.8% |
| New Mexico | $1,800 | $8,100 | $23,400 | $50 | 4.9% |
| South Carolina | $1,800 | $8,100 | $23,400 | $110 | 6.0% |
| Wisconsin | $1,820 | $8,190 | $23,660 | $130 | 5.0% |
| Tennessee | $1,840 | $8,280 | $23,920 | $300 | 7.0% |
| Texas | $1,840 | $8,280 | $23,920 | $300 | 6.3% |
| Georgia | $1,880 | $8,460 | $24,440 | $100 | 4.0% |
| Minnesota | $1,880 | $8,460 | $24,440 | $155 | 6.9% |
| Illinois | $1,900 | $8,550 | $24,700 | $150 | 6.3% |
| Idaho | $1,920 | $8,640 | $24,960 | $100 | 6.0% |
| North Carolina | $1,920 | $8,640 | $24,960 | $125 | 4.8% |
| Pennsylvania | $1,920 | $8,640 | $24,960 | $125 | 6.0% |
| Montana | $1,940 | $8,730 | $25,220 | $35 | 0.0% |
| Utah | $2,000 | $9,000 | $26,000 | $54 | 6.1% |
| Delaware | $2,080 | $9,360 | $27,040 | $110 | 0.0% |
| Nevada | $2,100 | $9,450 | $27,300 | $425 | 6.8% |
| Virginia | $2,140 | $9,630 | $27,820 | $100 | 5.3% |
| Vermont | $2,180 | $9,810 | $28,340 | $125 | 6.0% |
| Arizona | $2,200 | $9,900 | $28,600 | $50 | 5.6% |
| Colorado | $2,200 | $9,900 | $28,600 | $50 | 2.9% |
| Florida | $2,240 | $10,080 | $29,120 | $125 | 6.0% |
| Oregon | $2,240 | $10,080 | $29,120 | $100 | 0.0% |
| Rhode Island | $2,240 | $10,080 | $29,120 | $150 | 7.0% |
| Maine | $2,280 | $10,260 | $29,640 | $175 | 5.5% |
| New Hampshire | $2,340 | $10,530 | $30,420 | $102 | 0.0% |
| Washington | $2,360 | $10,620 | $30,680 | $200 | 6.5% |
| Connecticut | $2,380 | $10,710 | $30,940 | $120 | 6.3% |
| Maryland | $2,420 | $10,890 | $31,460 | $100 | 6.0% |
| New Jersey | $2,500 | $11,250 | $32,500 | $125 | 6.6% |
| Alaska | $2,540 | $11,430 | $33,020 | $250 | 0.0% |
| New York | $2,780 | $12,510 | $36,140 | $200 | 4.0% |
| California | $3,040 | $13,680 | $39,520 | $70 | 7.3% |
| Massachusetts | $3,080 | $13,860 | $40,040 | $500 | 6.3% |
| Hawaii | $3,860 | $17,370 | $50,180 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$6,930
- West Virginia$6,930
- Oklahoma$7,200
- Alabama$7,290
- Arkansas$7,290
5 Most Expensive States
- Hawaii$17,370
- Massachusetts$13,860
- California$13,680
- New York$12,510
- Alaska$11,430
Frequently Asked Questions
A consulting business is one of the lowest-cost businesses to start — typically a low-to-mid four-figure investment covering LLC formation, professional website, liability insurance, and working capital. If you're starting from a home office with existing computer equipment, you can launch for an even smaller four-figure outlay.
Entry-level consultants charge a healthy two-figure to low three-figure hourly rate; experienced specialists charge a strong three-figure rate; elite strategy consultants charge a high three-figure rate or more. Project fees range from low five figures for small engagements to well into five figures (and beyond) for complex strategy work. Price based on value and results, not cost.
Legally, no — you can consult as a sole proprietor. But an LLC protects personal assets if a client claims your advice caused losses. Most corporations require vendors to carry E&O insurance and provide a W-9, which works for both sole proprietors and LLCs.
Former employers, colleagues, and professional networks are the most reliable first-client sources. Let your LinkedIn network know you've launched. Attend industry conferences. Offer to speak at trade groups. Referrals from the first 2-3 clients typically sustain most new consulting practices.