How Much Does It Cost to Start a Staffing Agency?
Last updated: March 2026
National Average
Low
$20,000
Medium
$55,000
High
$150,000
Start a staffing agency placing temporary, contract, or permanent employees with client businesses in your target industry.
Time to Launch
2-4 months
Profit Margins
15-30%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Staffing Agency in Nationally
Budget:
$1,500
$8,000
$2,500
$3,000
$1,500
$1,500
$3,000
$30,000
Options
Employees:
One-Time Costs
$51,000
Monthly Costs
$0
First Year Total
$51,000
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $17,000 | $46,750 | $127,500 | $50 | 7.0% |
| West Virginia | $17,200 | $47,300 | $129,000 | $100 | 6.0% |
| Alabama | $17,600 | $48,400 | $132,000 | $200 | 4.0% |
| Arkansas | $17,800 | $48,950 | $133,500 | $45 | 6.5% |
| Oklahoma | $17,800 | $48,950 | $133,500 | $100 | 4.5% |
| Kansas | $18,000 | $49,500 | $135,000 | $160 | 6.5% |
| Indiana | $18,200 | $50,050 | $136,500 | $95 | 7.0% |
| Iowa | $18,200 | $50,050 | $136,500 | $50 | 6.0% |
| Michigan | $18,200 | $50,050 | $136,500 | $50 | 6.0% |
| Nebraska | $18,200 | $50,050 | $136,500 | $105 | 5.5% |
| Ohio | $18,200 | $50,050 | $136,500 | $99 | 5.8% |
| Kentucky | $18,400 | $50,600 | $138,000 | $40 | 6.0% |
| Louisiana | $18,400 | $50,600 | $138,000 | $100 | 4.5% |
| Missouri | $18,400 | $50,600 | $138,000 | $50 | 4.2% |
| Tennessee | $18,400 | $50,600 | $138,000 | $300 | 7.0% |
| Texas | $18,400 | $50,600 | $138,000 | $300 | 6.3% |
| Georgia | $18,800 | $51,700 | $141,000 | $100 | 4.0% |
| Illinois | $19,000 | $52,250 | $142,500 | $150 | 6.3% |
| New Mexico | $19,000 | $52,250 | $142,500 | $50 | 5.1% |
| Wisconsin | $19,000 | $52,250 | $142,500 | $130 | 5.0% |
| North Carolina | $19,200 | $52,800 | $144,000 | $125 | 4.8% |
| South Carolina | $19,200 | $52,800 | $144,000 | $110 | 6.0% |
| South Dakota | $19,400 | $53,350 | $145,500 | $150 | 4.5% |
| Minnesota | $19,600 | $53,900 | $147,000 | $155 | 6.9% |
| North Dakota | $19,800 | $54,450 | $148,500 | $135 | 5.0% |
| Wyoming | $20,000 | $55,000 | $150,000 | $100 | 4.0% |
| Nevada | $20,400 | $56,100 | $153,000 | $425 | 6.8% |
| Arizona | $20,600 | $56,650 | $154,500 | $50 | 5.6% |
| Florida | $20,600 | $56,650 | $154,500 | $125 | 6.0% |
| Idaho | $20,600 | $56,650 | $154,500 | $100 | 6.0% |
| Pennsylvania | $20,600 | $56,650 | $154,500 | $125 | 6.0% |
| Delaware | $20,800 | $57,200 | $156,000 | $110 | 0.0% |
| Virginia | $20,800 | $57,200 | $156,000 | $100 | 4.3% |
| Colorado | $21,200 | $58,300 | $159,000 | $50 | 2.9% |
| Montana | $21,200 | $58,300 | $159,000 | $70 | 0.0% |
| Utah | $21,200 | $58,300 | $159,000 | $54 | 4.8% |
| Oregon | $22,400 | $61,600 | $168,000 | $100 | 0.0% |
| Vermont | $22,400 | $61,600 | $168,000 | $125 | 6.0% |
| Maine | $22,800 | $62,700 | $171,000 | $175 | 5.5% |
| Rhode Island | $23,200 | $63,800 | $174,000 | $150 | 7.0% |
| New Hampshire | $23,400 | $64,350 | $175,500 | $102 | 0.0% |
| Washington | $23,600 | $64,900 | $177,000 | $200 | 6.5% |
| Connecticut | $23,800 | $65,450 | $178,500 | $120 | 6.3% |
| New Jersey | $25,000 | $68,750 | $187,500 | $125 | 6.6% |
| Alaska | $25,400 | $69,850 | $190,500 | $250 | 0.0% |
| Maryland | $25,800 | $70,950 | $193,500 | $100 | 6.0% |
| California | $27,000 | $74,250 | $202,500 | $70 | 7.3% |
| New York | $27,800 | $76,450 | $208,500 | $200 | 4.0% |
| Massachusetts | $30,000 | $82,500 | $225,000 | $500 | 6.3% |
| Hawaii | $38,600 | $106,150 | $289,500 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$46,750
- West Virginia$47,300
- Alabama$48,400
- Arkansas$48,950
- Oklahoma$48,950
5 Most Expensive States
- Hawaii$106,150
- Massachusetts$82,500
- New York$76,450
- California$74,250
- Maryland$70,950
Frequently Asked Questions
Staffing agencies require $20,000–$55,000 to start, with working capital being the largest component ($10,000–$30,000) to cover the payroll float gap. Insurance (workers comp + general liability) adds $4,000–$8,000/year. The business model requires paying workers weekly while clients pay in 30–60 days.
Staffing agencies charge a markup of 40–60% over worker wages. For a worker earning $15/hour, the client pays $21–$24/hour. On $1M in payroll, you earn $400,000–$600,000 gross revenue with 15–30% net margins after insurance, overhead, and staffing costs.
Staffing agencies need workers comp covering all placed workers by job classification. Clerical workers have the lowest rates (0.3–0.5% of payroll); construction and manufacturing workers have the highest (3–10%+ of payroll). Misclassification triggers expensive audits.
Requirements vary by state. Some states (CA, NY, IL, FL) require employment agency licenses with bond requirements ($1,000–$25,000). Others have minimal requirements. Always check your state's labor department for current requirements.