App Development Startup Cost Comparison

San Francisco, CA vs Los Angeles, CA

San Francisco, CA

$26,000 - $189,000

COL Index: 179.8

VS

Los Angeles, CA

$24,000 - $167,000

COL Index: 166.5

Detailed Cost Comparison

Expense San Francisco, CA Los Angeles, CA Difference
Business Registration & Legal
$4,200 - $18,500 $4,000 - $14,400 +23%
Development Hardware
$3,000 - $15,000 $3,000 - $15,000 Same
Software & Developer Tools
$1,000 - $8,000 $1,000 - $8,000 Same
Office or Coworking Space
$0 - $58,700 $0 - $45,000 +30%
Portfolio & Spec Projects
$0 - $10,000 $0 - $10,000 Same
Business Insurance (Annual)
$1,000 - $4,000 $1,000 - $4,000 Same
Marketing & Business Development
$2,000 - $12,000 $2,000 - $12,000 Same
Working Capital (3 Months)
$14,400 - $62,900 $13,300 - $58,300 +8%
Total Estimated Cost $26,000 - $189,000 $24,000 - $167,000 +13%

Local Market Factors

Factor San Francisco Los Angeles
Cost of Living Index 179.8 166.5
Commercial Rent ($/sqft/yr) $40 - $110 $30 - $85
Labor Rate Index 1.52 1.35
Sales Tax 8.625% 9.5%
Minimum Wage $18.67/hr $16.78/hr
LLC Filing Fee $70 $70

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