Starting a small business is a rewarding experience, but it’s important to be aware of some of the lesser thought-about costs that typically accompany such an endeavor. While there will always be industry-specific costs to be knowledgeable of, below are some of the general expenses to plan for.

Legal Fees

As a small business owner, you’ll need legal assistance to help with legal contracts, permits, and licenses in order to ensure that your business is set up properly, and you’re protected in the even of a legal dispute.

Licenses and Permits

Depending on your industry and location, there may be a variety of permits and licenses you’ll need to obtain, such as registering your business in the state and city in which it’s located. Some permits and licenses may need to be renewed annually. Fees can vary and may be affected by how your business is classified (partnership, corporation, nonprofit, or LLC). Additional licenses and permits may also be needed depending on business operations. For example, a construction business will need its heavy equipment operators to be certified through OSHA-approved training programs.

Business Insurance

Liability insurance – general liability, professional liability, commercial auto and commercial property – is essential for protecting your small business from any legal or financial damages. Without proper insurance, you’re risking your business and personal assets. Bundling some coverage into a business owner’s policy to save money is generally an option.

Business Software

Whether you use software programs or outsource tasks like accounting and payroll, you will incur costs via monthly fees or pricing packages. And if your business processes customer payments via a point-of-sale system, expect to pay a processing fee for each debit and credit card transaction.

Social Security and Medicare Taxes

Small business owners pay a self-employment tax rate of 15.3% on net earnings – 12.4% for Social Security and 2.9% for Medicare. This cost is split between employer and employee. You might also want to budget for federal and state unemployment taxes.

Marketing and Advertising

It’s important to invest in marketing and advertising in order to build brand awareness and attract customers, so it’s necessary to budget for these when creating a business plan. From creating a website to advertising on social media, marketing costs can add up quickly.

Equipment and Supplies

Along with the initial cost of equipment, be sure to plan for the ongoing cost of maintenance, repairs, and replacements. Unexpected expenses in these areas can be damaging to your bottom line.