How Much Does It Cost to Start a Accounting Firm?
Last updated: March 2026
National Average
Low
$7,000
Medium
$20,000
High
$46,000
Start an accounting firm offering tax preparation, bookkeeping, auditing, and financial advisory services.
Time to Launch
1-4 months
Profit Margins
35-60%
Break-Even Timeline
4-12 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Accounting Firm in Nationally
Budget:
$1,500
$2,000
$2,500
$1,200
$6,000
$600
$1,500
$2,500
$800
Options
Employees:
One-Time Costs
$18,600
Monthly Costs
$0
First Year Total
$18,600
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $5,950 | $17,000 | $39,100 | $50 | 7.0% |
| West Virginia | $6,020 | $17,200 | $39,560 | $100 | 6.0% |
| Alabama | $6,160 | $17,600 | $40,480 | $200 | 4.0% |
| Arkansas | $6,230 | $17,800 | $40,940 | $45 | 6.5% |
| Oklahoma | $6,230 | $17,800 | $40,940 | $100 | 4.5% |
| Kansas | $6,300 | $18,000 | $41,400 | $160 | 6.5% |
| Indiana | $6,370 | $18,200 | $41,860 | $95 | 7.0% |
| Iowa | $6,370 | $18,200 | $41,860 | $50 | 6.0% |
| Michigan | $6,370 | $18,200 | $41,860 | $50 | 6.0% |
| Nebraska | $6,370 | $18,200 | $41,860 | $105 | 5.5% |
| Ohio | $6,370 | $18,200 | $41,860 | $99 | 5.8% |
| Kentucky | $6,440 | $18,400 | $42,320 | $40 | 6.0% |
| Louisiana | $6,440 | $18,400 | $42,320 | $100 | 4.5% |
| Missouri | $6,440 | $18,400 | $42,320 | $50 | 4.2% |
| Tennessee | $6,440 | $18,400 | $42,320 | $300 | 7.0% |
| Texas | $6,440 | $18,400 | $42,320 | $300 | 6.3% |
| Georgia | $6,580 | $18,800 | $43,240 | $100 | 4.0% |
| Illinois | $6,650 | $19,000 | $43,700 | $150 | 6.3% |
| New Mexico | $6,650 | $19,000 | $43,700 | $50 | 5.1% |
| Wisconsin | $6,650 | $19,000 | $43,700 | $130 | 5.0% |
| North Carolina | $6,720 | $19,200 | $44,160 | $125 | 4.8% |
| South Carolina | $6,720 | $19,200 | $44,160 | $110 | 6.0% |
| South Dakota | $6,790 | $19,400 | $44,620 | $150 | 4.5% |
| Minnesota | $6,860 | $19,600 | $45,080 | $155 | 6.9% |
| North Dakota | $6,930 | $19,800 | $45,540 | $135 | 5.0% |
| Wyoming | $7,000 | $20,000 | $46,000 | $100 | 4.0% |
| Nevada | $7,140 | $20,400 | $46,920 | $425 | 6.8% |
| Arizona | $7,210 | $20,600 | $47,380 | $50 | 5.6% |
| Florida | $7,210 | $20,600 | $47,380 | $125 | 6.0% |
| Idaho | $7,210 | $20,600 | $47,380 | $100 | 6.0% |
| Pennsylvania | $7,210 | $20,600 | $47,380 | $125 | 6.0% |
| Delaware | $7,280 | $20,800 | $47,840 | $110 | 0.0% |
| Virginia | $7,280 | $20,800 | $47,840 | $100 | 4.3% |
| Colorado | $7,420 | $21,200 | $48,760 | $50 | 2.9% |
| Montana | $7,420 | $21,200 | $48,760 | $70 | 0.0% |
| Utah | $7,420 | $21,200 | $48,760 | $54 | 4.8% |
| Oregon | $7,840 | $22,400 | $51,520 | $100 | 0.0% |
| Vermont | $7,840 | $22,400 | $51,520 | $125 | 6.0% |
| Maine | $7,980 | $22,800 | $52,440 | $175 | 5.5% |
| Rhode Island | $8,120 | $23,200 | $53,360 | $150 | 7.0% |
| New Hampshire | $8,190 | $23,400 | $53,820 | $102 | 0.0% |
| Washington | $8,260 | $23,600 | $54,280 | $200 | 6.5% |
| Connecticut | $8,330 | $23,800 | $54,740 | $120 | 6.3% |
| New Jersey | $8,750 | $25,000 | $57,500 | $125 | 6.6% |
| Alaska | $8,890 | $25,400 | $58,420 | $250 | 0.0% |
| Maryland | $9,030 | $25,800 | $59,340 | $100 | 6.0% |
| California | $9,450 | $27,000 | $62,100 | $70 | 7.3% |
| New York | $9,730 | $27,800 | $63,940 | $200 | 4.0% |
| Massachusetts | $10,500 | $30,000 | $69,000 | $500 | 6.3% |
| Hawaii | $13,510 | $38,600 | $88,780 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$17,000
- West Virginia$17,200
- Alabama$17,600
- Arkansas$17,800
- Oklahoma$17,800
5 Most Expensive States
- Hawaii$38,600
- Massachusetts$30,000
- New York$27,800
- California$27,000
- Maryland$25,800
Frequently Asked Questions
Starting an accounting firm typically costs $12,000–$35,000, covering CPA licensing, professional liability insurance ($800–$2,000/year), tax software ($800–$2,500/year), and initial marketing. Home-based practices can start for under $15,000.
You don't need a CPA license to offer bookkeeping services, but you must be a licensed CPA to offer auditing services or sign tax returns as a paid preparer. Using 'CPA' in your firm name typically requires a licensed CPA as the majority owner.
Drake Tax ($1,600–$1,800/year) is popular for solo practices. Lacerte and ProSeries are preferred by larger firms. UltraTax is common at mid-size firms. All handle individual and business returns.
A solo CPA charging $200–$400/hour can be profitable with 20-30 regular business clients or 100-150 individual tax clients. The key is mix — monthly bookkeeping retainers provide predictable revenue, while tax season creates seasonal peaks.