20+ Hidden Costs of Running a Business

LOS ANGELES - Feb. 4, 2025 - PRLog -- We cherry picked a few from a longer article. Link at end.

14. Legal and Accounting Fees
The average total legal cost for a small business ranges between $2,000 and $10,000. (12) You will want an experienced attorney to help you if you decide to incorporate the business. It will cost much more, but is advisable. If you're doing a DIY incorporation that is for an uncomplicated business you may not need a lawyer. (3)

In 2023, it was reported that legal fees for American companies rose 29% in one year alone. One interesting fact is that 53% of companies' legal spend goes towards internal disputes and 47% external. Basically, a disgruntled employee may trigger legal spending. (11)

Your accounting fees will depend on whether or not you have an accounting department or if you need to consult an accountant a few times a year. The majority of small businesses in the U.S. spend $1,500 or less annually, but more complex financial needs may end up costing as much as $5,000. (13)

15. Credit Card Fees
Credit card processing fees are a big cost for retailers, and they can range from 1.5% to 3.5%. You're charged this fee for every sale you make, if the shopper uses a credit card network that you accept: Visa, Mastercard, American Express and Discover.

It is possible to negotiate better processing fees with each credit card processor, not network, and the more sales you make, the more inclined they will be to offer you a better rate. You'll also get a break if you charge in person.

Online purchases, or what's called "not present transactions" are riskier and more expensive because they pose a greater risk of fraud. If most of your transactions are online sales, you are paying higher processing fees.

If you use an address verification system, you will pay a lower interchange fee. Here are

The types of fees you'll be charged for:

Interchange Fees
This is the swiping fee, which you pay the card issuer (Chase, Visa, Wells Fargo, etc.)  each time a person makes a purchase of your goods or services. Fees are higher with ecommerce sales and any online purchase.

Payment Processor Fees
Payment processor fees are charged monthly or annually and go to processors like Square, Stripe, Stax, Shopify and Helcim to cover operating costs. These fees are usually the most negotiable.

Assessment Fees... Full article: https://smartfinancial.com/business-startup-costs