How Much Does It Cost to Start a Accounting Firm?
Start a certified public accounting or bookkeeping practice.
National average startup cost | Time to launch: 2-4 months
National Cost Breakdown
| Expense | National Average | Details |
|---|---|---|
|
Business Registration & Licenses
LLC/Corp filing, EIN, state CPA firm registration, and local business permits.
|
$300 - $2,000 | Varies by state |
|
CPA License & Certifications
CPA exam fees, state board application, continuing education credits, and professional association dues.
|
$1,000 - $4,000 | Varies by state |
|
Office Lease (First + Last + Security)
3 months upfront for 400-1,000 sq ft professional office space.
|
$3,000 - $15,000 | Varies by local rent |
|
Computers & Office Equipment
Workstations, multi-function printer, scanner, shredder, filing cabinets, and ergonomic furniture.
|
$2,000 - $8,000 | |
|
Accounting Software & Subscriptions
QuickBooks, tax preparation software (Lacerte, Drake), payroll platforms, and cloud backup services.
|
$1,500 - $5,000 | |
|
Professional Liability Insurance (Annual)
Errors and omissions, general liability, cyber liability, and fidelity bond coverage.
|
$1,200 - $5,000 | Varies by state |
|
Marketing & Client Acquisition
Website, Google Ads, local SEO, networking memberships, and referral program setup.
|
$1,500 - $8,000 | |
|
Working Capital (3 Months)
Rent, utilities, software subscriptions, and living expenses while building a client base.
|
$5,000 - $18,000 | Varies by cost of living |
| Total Estimated Startup Cost | $15,000 - $60,000 |
What Does It Cost to Start an Accounting Firm?
Starting an accounting firm is relatively affordable compared to other professional services businesses. The largest upfront investments are professional licensing, accounting software, and securing office space. Many CPAs start from a home office to minimize overhead, then move into commercial space once they have a stable client roster generating consistent monthly revenue.
Key Expenses That Drive Accounting Startup Costs
Professional liability insurance is non-negotiable for accounting firms and costs $1,200 to $5,000 annually depending on your services and state. Tax preparation software alone can run $1,500 to $3,000 per year for professional-grade platforms like Lacerte or Drake. Factor in cloud-based practice management tools, secure document portals, and continuing education requirements that add another $1,000 to $2,000 annually.
Essential Tools to Launch Your Accounting Firm
Accounting Firm Startup Costs by City
See how startup costs vary across major US cities. Costs are adjusted for local rent, labor, and cost of living.
| City | Estimated Total Cost | Cost of Living |
|---|---|---|
| Alexandria, VA | $24,000 - $93,000 | 143.6% |
| Arlington, VA | $24,000 - $96,000 | 148.2% |
| Anaheim, CA | $22,000 - $91,000 | 145.2% |
| Anchorage, AK | $20,000 - $82,000 | 132.5% |
| Allen, TX | $19,000 - $76,000 | 104.5% |
| Atlanta, GA | $19,000 - $79,000 | 101.4% |
| Ann Arbor, MI | $17,000 - $72,000 | 108% |
| Arlington, TX | $17,000 - $67,000 | 93.5% |
| Asheville, NC | $17,000 - $72,000 | 105.8% |
| Albany, NY | $16,000 - $65,000 | 93.6% |
| Albuquerque, NM | $16,000 - $66,000 | 93.2% |
| Athens, GA | $16,000 - $64,000 | 93.4% |
| Amarillo, TX | $15,000 - $59,000 | 85.5% |
| Appleton, WI | $15,000 - $61,000 | 90.5% |
| Akron, OH | $14,000 - $57,000 | 86% |
See Accounting Firm Costs in All Cities
Permits & Licenses Required
- Business license
- CPA license (state board of accountancy)
- CPA firm registration (most states)
- Sales tax permit (if applicable)
- Home occupation permit (if home-based)
Frequently Asked Questions
Starting an accounting firm typically costs between $15,000 and $60,000. A solo CPA working from home can launch for under $20,000, while leasing office space, hiring staff, and investing in premium software pushes costs toward the higher end. Your biggest ongoing expense will be professional liability insurance and software subscriptions.
You do not need a CPA license to offer bookkeeping or general accounting services. However, you must be a licensed CPA to perform audits, sign tax returns as a paid preparer in most states, or represent clients before the IRS. Most states also require CPA firm registration if you use the term CPA in your business name.
Most solo accounting firms reach profitability within 6 to 12 months, especially if the owner brings existing client relationships. Tax season provides a natural revenue boost in the first year. Building a steady year-round client base for bookkeeping and advisory services typically takes 12 to 18 months.
Related Industries
Consulting Business
$5,000 - $50,000
Start a professional consulting practice offering expert advice in management, strategy, IT, HR, or other specialized fields.
Tax Preparation Business
$8,000 - $40,000
Start a tax preparation service for individuals and small businesses.
Law Firm
$50,000 - $200,000
Open a law practice serving clients in your area of expertise.
Insurance Agency
$20,000 - $80,000
Start an independent insurance agency selling policies to individuals and businesses.
Web Design Business
$3,000 - $25,000
Start a web design and development business creating websites, landing pages, and digital experiences for small businesses and organizations.
Startup Guides
Learn more about starting and running a accounting firm:
Ready to Start Your Accounting Firm?
Start your Accounting Firm LLC in — free registered agent for 1 year.
Form Your LLC for $0 + State Fee →Trusted by 500,000+ businesses · Excellent rating on Trustpilot