How Much Does It Cost to Start a Staffing Agency?
Last updated: May 2026
National Average
Low
$20,000
Medium
$55,000
High
$150,000
Start a staffing agency placing temporary, contract, or permanent employees with client businesses in your target industry.
Time to Launch
2-4 months
Profit Margins
15-30%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Staffing Agency in Nationally
Budget:
$1,500
$8,000
$2,500
$3,000
$1,500
$1,500
$3,000
$30,000
Options
Employees:
Startup Costs
$51,000
Monthly Costs
$15,000
First Year Total
$231,000
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $15,400 | $42,350 | $115,500 | $50 | 7.0% |
| West Virginia | $15,400 | $42,350 | $115,500 | $100 | 6.0% |
| Oklahoma | $16,000 | $44,000 | $120,000 | $100 | 4.5% |
| Alabama | $16,200 | $44,550 | $121,500 | $200 | 4.0% |
| Arkansas | $16,200 | $44,550 | $121,500 | $45 | 6.5% |
| North Dakota | $16,400 | $45,100 | $123,000 | $135 | 5.0% |
| Iowa | $16,600 | $45,650 | $124,500 | $50 | 6.0% |
| Kansas | $16,600 | $45,650 | $124,500 | $160 | 6.5% |
| Missouri | $16,600 | $45,650 | $124,500 | $50 | 4.2% |
| South Dakota | $16,600 | $45,650 | $124,500 | $150 | 4.2% |
| Kentucky | $16,800 | $46,200 | $126,000 | $40 | 6.0% |
| Louisiana | $16,800 | $46,200 | $126,000 | $100 | 5.0% |
| Wyoming | $16,800 | $46,200 | $126,000 | $100 | 4.0% |
| Nebraska | $17,000 | $46,750 | $127,500 | $105 | 5.5% |
| Indiana | $17,200 | $47,300 | $129,000 | $95 | 7.0% |
| Michigan | $17,600 | $48,400 | $132,000 | $50 | 6.0% |
| Ohio | $17,600 | $48,400 | $132,000 | $99 | 5.8% |
| New Mexico | $18,000 | $49,500 | $135,000 | $50 | 4.9% |
| South Carolina | $18,000 | $49,500 | $135,000 | $110 | 6.0% |
| Wisconsin | $18,200 | $50,050 | $136,500 | $130 | 5.0% |
| Tennessee | $18,400 | $50,600 | $138,000 | $300 | 7.0% |
| Texas | $18,400 | $50,600 | $138,000 | $300 | 6.3% |
| Georgia | $18,800 | $51,700 | $141,000 | $100 | 4.0% |
| Minnesota | $18,800 | $51,700 | $141,000 | $155 | 6.9% |
| Illinois | $19,000 | $52,250 | $142,500 | $150 | 6.3% |
| Idaho | $19,200 | $52,800 | $144,000 | $100 | 6.0% |
| North Carolina | $19,200 | $52,800 | $144,000 | $125 | 4.8% |
| Pennsylvania | $19,200 | $52,800 | $144,000 | $125 | 6.0% |
| Montana | $19,400 | $53,350 | $145,500 | $35 | 0.0% |
| Utah | $20,000 | $55,000 | $150,000 | $54 | 6.1% |
| Delaware | $20,800 | $57,200 | $156,000 | $110 | 0.0% |
| Nevada | $21,000 | $57,750 | $157,500 | $425 | 6.8% |
| Virginia | $21,400 | $58,850 | $160,500 | $100 | 5.3% |
| Vermont | $21,800 | $59,950 | $163,500 | $125 | 6.0% |
| Arizona | $22,000 | $60,500 | $165,000 | $50 | 5.6% |
| Colorado | $22,000 | $60,500 | $165,000 | $50 | 2.9% |
| Florida | $22,400 | $61,600 | $168,000 | $125 | 6.0% |
| Oregon | $22,400 | $61,600 | $168,000 | $100 | 0.0% |
| Rhode Island | $22,400 | $61,600 | $168,000 | $150 | 7.0% |
| Maine | $22,800 | $62,700 | $171,000 | $175 | 5.5% |
| New Hampshire | $23,400 | $64,350 | $175,500 | $102 | 0.0% |
| Washington | $23,600 | $64,900 | $177,000 | $200 | 6.5% |
| Connecticut | $23,800 | $65,450 | $178,500 | $120 | 6.3% |
| Maryland | $24,200 | $66,550 | $181,500 | $100 | 6.0% |
| New Jersey | $25,000 | $68,750 | $187,500 | $125 | 6.6% |
| Alaska | $25,400 | $69,850 | $190,500 | $250 | 0.0% |
| New York | $27,800 | $76,450 | $208,500 | $200 | 4.0% |
| California | $30,400 | $83,600 | $228,000 | $70 | 7.3% |
| Massachusetts | $30,800 | $84,700 | $231,000 | $500 | 6.3% |
| Hawaii | $38,600 | $106,150 | $289,500 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$42,350
- West Virginia$42,350
- Oklahoma$44,000
- Alabama$44,550
- Arkansas$44,550
5 Most Expensive States
- Hawaii$106,150
- Massachusetts$84,700
- California$83,600
- New York$76,450
- Alaska$69,850
Frequently Asked Questions
Staffing agencies typically require a low-to-mid five-figure investment to start, with working capital being the largest component to cover the payroll float gap. Insurance (workers comp + general liability) adds a meaningful four-figure annual premium. The business model requires paying workers weekly while clients pay in 30–60 days.
Staffing agencies charge a meaningful markup over the worker's hourly wage; the client bill rate runs noticeably above the worker pay rate. On a seven-figure annual payroll book, the agency typically captures a high six-figure gross revenue uplift, with modest net margins after insurance, overhead, and recruiter costs.
Staffing agencies need workers comp covering all placed workers by job classification. Clerical workers carry the lowest rates as a share of payroll; construction and manufacturing workers carry materially higher rates. Misclassification triggers expensive audits.
Requirements vary by state. Some states (CA, NY, IL, FL) require employment agency licenses with surety-bond requirements that range widely by jurisdiction. Others have minimal requirements. Always check your state's labor department for current requirements.