When just starting out, many newly established business owners are fairly certain they have all the tools and funding they need to succeed. While that may be true in some respects, what some don’t realize is that there are also hidden costs lurking in the corners. Here are 5 costs that every startup should know about before they begin.

Business Insurance Must Haves 

Insurance does not usually seem all that important to startup businesses—unless they need it. If insurance is not purchased, disasters, including fires, theft and broken water mains, can destroy a business. In fact, many areas throughout the United States mandate business owners have insurance for unemployment, liability and property.

Don’t Forget About Legal Fees

Occasionally startups may require representation for legal matters such as contract agreements. Lawyers can charge as much as $500 or more for each hour they work on your behalf.

The Truth About Taxes

Startup businesses are sometimes surprised to learn that they must pay many types of local, state, and federal taxes, long before they are successful, according to U.S News. Plus, since taxes can sometimes be very confusing, startup businesses may need accounts, attorneys and tax specialists to help them wade through the paperwork. 

Get Ready for Industry Association Costs

It can pay off to have contacts in your industry, but the membership fees for joining trade associations can cost a great deal of money. Although associations keep you in tune with your industry, association fees can become a burden if you are short on cash or company credit cards are at their limit when they are due.

The Price of Professional Fees

If the format of your startup company is complex, you might also require the guidance of  lawyer to set up a LLC. The legal costs and filing fees to do this are different for each area. You also may need to pay for business and other types of licensing from government authorities.

Prior to opening the doors to your new business, you might want to meet with seasoned business owners and financial experts in your industry. They can let you know if there are any other hidden costs that you might want to know about.