Tech Startup Startup Cost Comparison
Sacramento, CA vs Chicago, IL
Sacramento, CA
$24,000 - $184,000
COL Index: 125.8
VS
Chicago, IL
$25,000 - $190,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Sacramento, CA | Chicago, IL | Difference |
|---|---|---|---|
|
Incorporation & Legal Formation
|
$2,700 - $8,700 | $5,600 - $10,900 | -31% |
|
Legal & Intellectual Property
|
$2,000 - $15,000 | $2,000 - $15,000 | Same |
|
Computers & Hardware
|
$3,000 - $15,000 | $3,000 - $15,000 | Same |
|
Software & Cloud Services
|
$1,000 - $12,000 | $1,000 - $12,000 | Same |
|
Office or Coworking Space (Optional)
|
$0 - $32,900 | $0 - $47,000 | -30% |
|
Marketing & Product Launch
|
$2,000 - $20,000 | $2,000 - $20,000 | Same |
|
Business Insurance
|
$1,000 - $5,000 | $1,000 - $5,000 | Same |
|
Working Capital & Runway (3-6 months)
|
$12,600 - $75,500 | $10,800 - $64,700 | +17% |
| Total Estimated Cost | $24,000 - $184,000 | $25,000 - $190,000 | -3% |
Local Market Factors
| Factor | Sacramento | Chicago |
|---|---|---|
| Cost of Living Index | 125.8 | 107.8 |
| Commercial Rent ($/sqft/yr) | $18 - $45 | $25 - $65 |
| Labor Rate Index | 1.1 | 1.15 |
| Sales Tax | 8.75% | 10.25% |
| Minimum Wage | $16.00/hr | $15.80/hr |
| LLC Filing Fee | $70 | $150 |
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