Manufacturing Business Startup Cost Comparison

Los Angeles, CA vs Chicago, IL

Los Angeles, CA

$89,000 - $1,466,000

COL Index: 166.5

VS

Chicago, IL

$75,000 - $1,229,000

COL Index: 107.8

Detailed Cost Comparison

Expense Los Angeles, CA Chicago, IL Difference
Licensing & Compliance
$4,000 - $15,000 $5,600 - $15,000 -8%
Manufacturing Space
$25,000 - $500,000 $19,600 - $391,300 +28%
Manufacturing Equipment
$15,000 - $400,000 $15,000 - $400,000 Same
Initial Raw Materials
$5,000 - $100,000 $5,000 - $100,000 Same
Insurance & Compliance
$5,000 - $30,000 $5,000 - $30,000 Same
Production Staff & Training
$6,800 - $67,500 $5,800 - $57,500 +17%
Sales & Distribution
$3,000 - $20,000 $3,000 - $20,000 Same
Working Capital (3-6 Months)
$25,000 - $333,000 $16,200 - $215,600 +54%
Total Estimated Cost $89,000 - $1,466,000 $75,000 - $1,229,000 +19%

Local Market Factors

Factor Los Angeles Chicago
Cost of Living Index 166.5 107.8
Commercial Rent ($/sqft/yr) $30 - $85 $25 - $65
Labor Rate Index 1.35 1.15
Sales Tax 9.5% 10.25%
Minimum Wage $16.78/hr $15.80/hr
LLC Filing Fee $70 $150

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