Construction Company Startup Cost Comparison

Sacramento, CA vs Los Angeles, CA

Sacramento, CA

$65,000 - $544,000

COL Index: 125.8

VS

Los Angeles, CA

$74,000 - $605,000

COL Index: 166.5

Detailed Cost Comparison

Expense Sacramento, CA Los Angeles, CA Difference
Licensing & Contractor License
$2,700 - $15,000 $4,000 - $15,000 -7%
Heavy Equipment & Tools
$15,000 - $200,000 $15,000 - $200,000 Same
Trucks & Vehicles
$10,000 - $80,000 $10,000 - $80,000 Same
Insurance & Bonding
$8,000 - $40,000 $8,000 - $40,000 Same
Project Management & Estimating
$2,000 - $10,000 $2,000 - $10,000 Same
Marketing & Bid Preparation
$2,000 - $10,000 $2,000 - $10,000 Same
Working Capital (3-6 Months)
$25,200 - $188,700 $33,300 - $249,800 -24%
Total Estimated Cost $65,000 - $544,000 $74,000 - $605,000 -10%

Local Market Factors

Factor Sacramento Los Angeles
Cost of Living Index 125.8 166.5
Commercial Rent ($/sqft/yr) $18 - $45 $30 - $85
Labor Rate Index 1.1 1.35
Sales Tax 8.75% 9.5%
Minimum Wage $16.00/hr $16.78/hr
LLC Filing Fee $70 $70

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