There's a number in your head right now.
Maybe it's $5,000. Maybe it's $10,000. Maybe it's some vague, terrifying sum that feels permanently out of reach.
That number is the reason you haven't started yet. It's the reason you're still "thinking about it" instead of doing it. It's the invisible wall between you and your business.
Here's the thing: that number is probably wrong.
The Myth of the Big Launch
Somewhere along the way, we all absorbed this idea that starting a business requires a war chest. You need lawyers and accountants and a fancy LLC and a registered agent and business insurance and... and... and...
Deep breath.
Most of that? You don't need it. At least not yet.
The business formation industry has done an incredible job convincing aspiring entrepreneurs that Day One requires a fully armored legal fortress. It doesn't. What it requires is clarity, a willingness to start, and about $50-200 in actual costs.
Yes, really.
What Starting Actually Costs
Let's break down what you actually need to begin operating a legitimate business:
The essentials (Year One):
- Domain name: $12-15/year
- Basic website or landing page: $0-20/month (plenty of free options)
- Business bank account: $0 (many banks offer free business checking)
- Accounting software: $0-15/month (free tiers exist)
- Business cards: $0 (you probably don't need them)
Total to start operating: Under $50
That's it. That's the barrier to entry.
"But wait," you're thinking, "what about my LLC?"
The LLC Can Wait (No, Really)
Here's something the filing services don't advertise: you don't need an LLC to start a business.
When you begin operating a business without a formal entity, you're automatically a sole proprietor. That's not a failure state. It's a legitimate business structure that millions of Americans use successfully.
And here's the part that might surprise you: you can operate your entire first year as a sole proprietor, deduct all your business expenses on Schedule C, and file your LLC the following January.
Read that again.
Your first year of business expenses, that laptop, those software subscriptions, your home office, your mileage, your marketing costs, all of it can be deducted on your personal tax return using Schedule C. No LLC required.
Then, when January rolls around and you've actually validated your idea, made some revenue, and know this thing has legs? That's when you file your LLC. You'll start the new tax year with a fresh entity, a year of real experience, and the confidence that you're not just playing business. You're running one.
"But I Need an LLC Because..."
Let's address the reasons people think they need to sprint to the Secretary of State's office on Day One.
"I need liability protection."
From what, exactly? If you're selling consulting services, digital products, or most service-based offerings, your liability exposure in Year One is minimal. You're not manufacturing heavy machinery. You're not operating a daycare. You're testing an idea.
And here's the uncomfortable truth: if your business plan requires significant liability protection from Day One, that's often a sign you're taking on more risk than you're financially ready for. An LLC doesn't make risky decisions safe. It just limits how much you personally lose when things go wrong.
"I need it to look legitimate."
To whom? Your first customers care about whether you can solve their problem, not whether you have "LLC" after your name. The most successful businesses in the world started in garages and dorm rooms, not law offices.
"My contract requires it."
If a client or partner is requiring you to have an LLC before they'll work with you, that's actually useful information. It means the deal is big enough and real enough to justify the filing. Now you file, because you have a concrete reason, not a theoretical one.
"I want to separate my business and personal finances."
You can do this today. Open a business checking account as a sole proprietor (most banks allow this with just your SSN), use it exclusively for business transactions, and you've got separation. The LLC is a legal structure, not a financial organization system.
The Costs That ARE Real
Here's where I'll be honest with you: there are real costs to starting a business. They're just not the ones you've been worrying about.
Time spent researching instead of building. Every hour you spend in the "should I file an LLC?" rabbit hole is an hour you're not spending on your actual product, service, or customers. This is the most expensive cost, and it's invisible.
Opportunity cost of delay. Your future customers are out there right now, looking for solutions. Every month you wait is a month of revenue and learning you'll never get back.
The wrong professional advice at the wrong time. Hiring a lawyer to set up your corporate structure before you've made a single dollar is like hiring an interior designer before you've bought the house. Sequence matters.
What You Actually Need to Start
- Clarity on what you're offering and to whom. Not a 50-page business plan. Just enough to explain it in two sentences.
- A way for people to find you. A simple website, a social media presence, even just a phone number and email.
- A way to get paid. A business bank account and a payment processor (Stripe, Square, PayPal, all free to set up).
- A way to track what comes in and goes out. A spreadsheet works. So does free accounting software.
- Permission to start before you feel ready. This one's free, and it's the hardest to obtain.
The OpenChamber Approach
We built OpenChamber because we watched someone we love spend months drowning in paperwork, forms, and conflicting advice, most of it premature.
Our philosophy is simple: know what you need before you need it.
Your personalized roadmap shows you the full journey, from validating your idea through scaling your operation. But it also shows you what you don't need to worry about yet. That LLC filing? It's in Phase 3 (Foundations), not Phase 1 (Spark).
Start where you are. Build something real. Let the legal formalities follow the business, not the other way around.
The Bottom Line
The real cost of starting a business is about $50 and a decision.
The LLC can wait until next January. The lawyer can wait until you have contracts worth reviewing. The accountant can wait until you have income worth optimizing.
What can't wait is you.
Your business is ready when you are. And you're more ready than you think.
Ready to see exactly what your first year looks like? Get your free personalized roadmap in under 5 minutes.
ā Warren, Founder of OpenChamber