Can You Set Up A Company With Less Than $100?

If you’re thinking about setting up and starting your own business, you might have seen at least a few articles online suggesting that the costs can be very low indeed. In fact, it’s not uncommon to see crazy articles stating that you can set up a new business with just five bucks. Is this realistic or are the writers of these articles just blowing smoke? Unfortunately, the answer is a little more complicated than just yes or no. So, let’s delve into the costs of your company and find out just how much you’re probably going to need to pay.

Where Does This Idea Of A Five Bucks  Company Come From?

Basically, if you wanted to, you can start your business without any costs at all. Do you want a website? Well, it’s possible to get one up and running for free using a site builder or CMS like WordPress. And suddenly, hey presto, you can sell products on that site. Note, you haven’t spent any money. So yes, you can set up a company with no money.

And, even if you do need to buy materials, products or invest in labour, this can all be handled with a business loan. Note, you still won’t have spent a single dime. Where then, is that five bucks being spent?

The Little Legal Bits

To trade legally and sell you need to officially form your business. That’s a legal process and will require the work of a professional. This means that you will need to pay for the services to get the right documents which will allow you to trade and operate legally on the world market. The good news is that these costs are relatively low but not quite as low as you might have heard. To set up a limited company, you’re looking at spending at least fifty dollars. Once you have paid for this type of service your business will be established. So, yes, it is possible to set up a company even if you just have a hundred dollars in your hand. But will it be successful? The answer is probably not.

What Else Do You Need?

The short answer would be a lot but let’s start with marketing. You need to make sure that customers can find your business online. The easiest way to do this is with SEO which will cost at least a couple hundred a month depending on the state your site is in currently. On top of this, you need to host the website which isn’t a massive cost but will still add on to what you’ll need to pay.

Then there’s employee wages, consultants, professional expertise and the list goes on. To conclude then, you can set up a company for less than $100. But if you want it to be successful in the first year, you need on average at least $3000 either through a business loan or from your own savings. It’s always a gamble setting up a business but spending a little more earlier on will strengthen your position.

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