Report: Chattanooga ranks best for costs to start a business

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Authored By chloe.morrison

A SmartAsset report ranked Chattanooga as the U.S. city with the lowest startup costs for the second consecutive year.

The financial technology company looked at 80 of the largest cities and ranked them based on the costs that a new company would need to cover during its first year of operation, such as filing fees, legal and accounting fees, payroll costs, and the cost of utilities.

The expenses that SmartAsset considered were the same used in their 2015 study

In the Scenic City, it costs $225,442 for a business owner with five employees and a 1,000-square-foot office to run a first-year startup, according to the report. 

Here are a couple of other key takeaways from the report, which can be found here

-Tennessee is home to three of the top 10 cities with the lowest startup costs.

-The largest U.S. cities are expensive places to live and start a business. Although there is access to a bigger network and more resources, entrepreneurs need to be willing to pay higher prices for startups in places like Washington, D.C., or New York City.