Cheap Businesses to Start from Home
16 home-based business types with real cost data — 2026 guide
Starting a business from home eliminates the single largest expense most entrepreneurs face: commercial rent. Without a storefront or office lease, your startup costs drop dramatically and your break-even timeline shrinks from months to weeks.
Home-based businesses also remove the daily commute, cut utility costs, and offer a flexible schedule that adapts to your life. Whether you're a parent, a side-hustler, or making a full career switch, working from home lets you test an idea with minimal financial risk.
Below are all the home-based business types in our database, sorted from cheapest to most expensive. Each includes a full cost breakdown with an interactive calculator so you can see exactly where your money goes.
16 Home-Based Business Types
Dropshipping Business
$500 – $15K
Pet Sitting Business
$1K – $20K
Tutoring Business
$1K – $25K
Cleaning Business
$2K – $50K
E-Commerce Store
$2K – $50K
Consulting Business
$2K – $50K
Painting Business
$3K – $60K
Auto Detailing
$3K – $30K
Personal Training Business
$3K – $50K
Accounting Firm
$3K – $60K
App Development Business
$3K – $50K
Landscaping Business
$5K – $100K
Photography Business
$5K – $50K
Massage Therapy Business
$5K – $80K
Dog Grooming Business
$10K – $100K
Real Estate Agency
$10K – $150K
Tips for Starting a Home Business
- Designate a dedicated workspace — even a corner desk counts for productivity and tax deductions.
- Register your business and open a separate bank account from day one to keep finances clean.
- Check your homeowner's or renter's insurance — most standard policies do not cover business equipment or liability.
- Set clear working hours and communicate them to household members to maintain boundaries.
- Start lean: use free or low-cost tools for invoicing, scheduling, and marketing before upgrading to paid software.
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Frequently Asked Questions
What is the cheapest business to start from home?
Based on our data, Dropshipping Business is one of the cheapest home-based businesses to start, with costs beginning at $500. Several other home businesses also launch for under $2,000, making them accessible to almost anyone.
Do I need a business license to work from home?
Requirements vary by location. Most cities require a general business license ($50–$400), and some require a home occupation permit. Check your local zoning laws — certain residential zones restrict client visits or signage. Your state may also require a sales tax permit if you sell physical products.
What home-based businesses make the most money?
Consulting, accounting, and app development tend to have the highest earning potential among home-based businesses because they sell specialized expertise with minimal overhead. Margins above 60% are common since there is no rent, commute, or storefront to maintain.
Can I claim home office deductions?
Yes, if you use part of your home regularly and exclusively for business. The simplified method allows a $5/sq ft deduction (up to 300 sq ft). The regular method lets you deduct a percentage of actual expenses (mortgage interest, utilities, insurance) based on the office's share of your home's total area. Consult a tax professional for your specific situation.