Sole proprietorship: what it costs a year in each state (2026)
The default for one person in business without filing anything with the state. Profit goes on Schedule C of the owner's Form 1040 and carries self-employment tax.
At $100,000 of profit a sole proprietorship costs from $22,365 a year (Florida) to $31,372 (Hawaii) in tax and fees. The full guide.
| State | Yearly cost at $100k | To set up |
|---|---|---|
| Florida | $22,365 | $0 |
| Ohio | $22,365 | $0 |
| South Dakota | $22,365 | $0 |
| Tennessee | $22,365 | $0 |
| Texas | $22,365 | $0 |
| Wyoming | $22,365 | $0 |
| Alaska | $22,399 | $0 |
| Nevada | $22,503 | $0 |
| North Dakota | $22,897 | $0 |
| New Hampshire | $23,668 | $0 |
| Washington | $23,929 | $0 |
| Arizona | $24,295 | $0 |
| Louisiana | $24,768 | $0 |
| Indiana | $25,077 | $0 |
| Pennsylvania | $25,218 | $0 |
| Rhode Island | $25,233 | $0 |
| Iowa | $25,285 | $0 |
| Mississippi | $25,350 | $0 |
| South Carolina | $25,459 | $0 |
| Kentucky | $25,500 | $0 |
| North Carolina | $25,564 | $0 |
| New Mexico | $25,588 | $0 |
| Arkansas | $25,632 | $0 |
| West Virginia | $25,732 | $0 |
| Colorado | $25,746 | $0 |
| Missouri | $25,796 | $0 |
| Nebraska | $25,890 | $0 |
| Connecticut | $25,901 | $0 |
| Wisconsin | $25,910 | $0 |
| Oklahoma | $26,002 | $0 |
| Vermont | $26,039 | $0 |
| Michigan | $26,064 | $0 |
| New Jersey | $26,095 | $0 |
| Idaho | $26,182 | $0 |
| Georgia | $26,254 | $0 |
| Montana | $26,255 | $0 |
| Maryland | $26,413 | $0 |
| Utah | $26,501 | $0 |
| Alabama | $26,747 | $0 |
| Kansas | $26,751 | $0 |
| Massachusetts | $26,792 | $0 |
| New York | $26,808 | $0 |
| Illinois | $26,821 | $0 |
| Virginia | $26,895 | $0 |
| California | $26,916 | $0 |
| Maine | $26,989 | $0 |
| Minnesota | $27,161 | $0 |
| Delaware | $27,315 | $0 |
| Oregon | $29,923 | $0 |
| District of Columbia | $30,600 | $0 |
| Hawaii | $31,372 | $0 |
Federal and state tax and fees, single filer, $150,000 revenue.