Specifically the US but I guess this could be asked anywhere.
I am not of the assumption it is actually possible for any normal person that doesn’t already have millions. The days of an honest mom and pop seem long dead (since at least the 90s, maybe 80s). Or if there are any, they are struggling to even stay afloat.
Like many, I thought I’d always want to start some sort of good business that actually serves a need. I now see that as impossible. I know people who made small niche software in the 80s, ended up making it a decent size company and retired with millions. I do not think anyone could do that today, especially with how tech is now.
I see plenty of scammy tech startups. This isnt what I’m talking about. Imagine a CNC shop starting today. They largely dont exist because no one does engine work anymore and most things are throwaway. Similar thing for any type of repair, none exist because its all throwaway. The only businesses I ever see are reselling things made by slaves in China. No one makes anything (other than 3d printed junk).
I’d be quite surprised if anyone is living decently off a real, honest business that they didnt get millions from their parents to start and that doesn’t exploit the hell out of others.
In the USA you need hardly anything to start a company. A sole proprietorship is literally just a person saying “I am a business” and that’s that. If you’re going to sell stuff you need a state sales tax number, if you’re going to employ people you need an EIN from the IRS. Otherwise you just…start a business. Whatever that business is decides your costs. You want to clean houses? You need a bucket of cleaning supplies maybe (maybe your clients just need a helping hand and they already have the supplies!). You want to start a construction company? You’re gonna need a lot more. I’ve been trying to start my own company and honestly the hardest part isn’t the money, it’s how much stuff you have to do to get a website running and looking good, to make sure your product is good, to try to find places to sell, business cards, marketing, etc.
I’m, for once, jealous of the USA.
Here in Spain to open a business is bureaucratic hell.
Before doing anything you need to register in several administrations, not one, several. Once registered no matter you have sales or not, you have to pay a monthly social security quota. Several hundred euros a month even if you are not yet made a sale.
Then even if you don’t sell absolutely anything, because your business was shit or whatever, you have to present sale tax models, even if they are at 0.
And there’s no minimum, you have to do all this even if tou just want to sell one cool t-shirt you made for 1€.
At the end even the smallest business end up hiring some specialized person just to handle the bureaucratic mess for them, which add up to the monthly cost of having a business opened.
Oof. I’m sorry.
It’s pretty easy in Norway too. “I am a business”-scale is registered online, and there’s a miniscule fee, and after a few days you get the paperwork in the mail confirming it.
If you’re very low volume and revenue, that’s it, basically. Above a certain level you need to file for a VAT number, but it’s pretty simple. And scaling up as you need to is no biggy.
Source: I’m kind of a business owner. Revenue: around 400$ equivalent last year.