Online Business Startup Costs
6 online business types with real cost data — 2026 breakdown
Online businesses have the lowest barriers to entry of any business category. There is no commercial lease to sign, no storefront to build out, and no geographic limit on your customer base. You can launch from a laptop and scale globally without ever signing a lease.
The tradeoff is competition. Because the barriers are low, every niche is crowded. Winning online means investing in marketing, building a strong brand, and delivering a product or service that stands out. Startup costs shift from rent and build-out to software, advertising, and content creation.
Below are all 6 online business types in our database, sorted from cheapest to most expensive. Each includes a full cost breakdown and interactive calculator.
6 Online Business Types
Online Business Cost Comparison
| Business Type | Min Cost | Max Cost | Key Expense |
|---|---|---|---|
| Dropshipping Business | $500 | $15,000 | Marketing & ads |
| Tutoring Business | $1,000 | $25,000 | Certifications |
| E-Commerce Store | $2,000 | $50,000 | Inventory & platform |
| Consulting Business | $2,000 | $50,000 | Marketing & branding |
| Accounting Firm | $3,000 | $60,000 | Software & licensing |
| App Development Business | $3,000 | $50,000 | Development tools |
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Frequently Asked Questions
How much does it cost to start an online business?
Based on our data, online businesses range from $500 (Dropshipping Business) to $50,000 (App Development Business). Most can launch for under $5,000 if you start lean and scale gradually.
What is the cheapest online business to start?
Dropshipping Business is the cheapest online business in our database, with startup costs beginning at $500. Low-overhead models like this are ideal for testing a business idea before investing more.
Do online businesses need insurance?
Yes. At minimum, most online businesses should carry general liability insurance ($300–$1,000/year) and professional liability (errors & omissions) insurance if you provide advice or services. If you sell physical products, product liability coverage is also recommended. Many clients and platforms require proof of insurance before working with you.
What ongoing costs do online businesses have?
Common recurring costs include web hosting ($10–$100/month), domain renewal ($10–$20/year), email and productivity software ($5–$30/month), marketing and advertising ($100–$2,000+/month), payment processing fees (2.9% + $0.30 per transaction), and accounting software ($20–$60/month). Total ongoing costs typically range from $200–$2,000/month depending on the business model and scale.