Open data · May 2025 wage release
Staffing Startup Cost Index
The cash required to open a staffing agency, modelled state by state and niche by niche from real wage data: setup, six months of overheads, and the payroll gap that actually sinks new agencies.
In short
Starting a staffing agency costs far more in working capital than in setup fees. Formation, insurance and software run around $9,000. Ten contractors on a 52-day cash cycle typically lock up six figures before a single invoice is paid. This index models that total for every US state and recruitment niche.
Cash to open, state by state
10 contractors, 40 hours a week, 45-day client terms and a 7-day pay cycle, against $9,000 of setup and 6 months of overheads.
| State | Anchor role | Median pay | Weekly payroll | Payroll gap | Total unfunded | Total with funding |
|---|---|---|---|---|---|---|
| Alabama | Registered Nurses | $37.06 | $16,677 | $123,886 | $159,886 | $48,389 |
| Alaska | Registered Nurses | $52.64 | $23,688 | $175,968 | $211,968 | $53,597 |
| Arizona | Registered Nurses | $47.84 | $21,528 | $159,922 | $195,922 | $51,992 |
| Arkansas | Registered Nurses | $37.95 | $17,078 | $126,861 | $162,861 | $48,686 |
| California | Registered Nurses | $67.44 | $30,348 | $225,442 | $261,442 | $58,544 |
| Colorado | Registered Nurses | $48.20 | $21,690 | $161,126 | $197,126 | $52,113 |
| Connecticut | Registered Nurses | $49.39 | $22,226 | $165,104 | $201,104 | $52,510 |
| Delaware | Registered Nurses | $47.85 | $21,533 | $159,956 | $195,956 | $51,996 |
| District of Columbia | Registered Nurses | $49.30 | $22,185 | $164,803 | $200,803 | $52,480 |
| Florida | Registered Nurses | $40.48 | $18,216 | $135,319 | $171,319 | $49,532 |
| Georgia | Registered Nurses | $44.98 | $20,241 | $150,362 | $186,362 | $51,036 |
| Guam | Nurse Practitioners | $57.05 | $25,673 | $190,710 | $226,710 | $55,071 |
| Hawaii | Registered Nurses | $65.54 | $29,493 | $219,091 | $255,091 | $57,909 |
| Idaho | Registered Nurses | $44.45 | $20,003 | $148,590 | $184,590 | $50,859 |
| Illinois | Registered Nurses | $46.15 | $20,768 | $154,273 | $190,273 | $51,427 |
| Indiana | Registered Nurses | $40.14 | $18,063 | $134,182 | $170,182 | $49,418 |
| Iowa | Registered Nurses | $37.80 | $17,010 | $126,360 | $162,360 | $48,636 |
| Kansas | Registered Nurses | $38.14 | $17,163 | $127,497 | $163,497 | $48,750 |
| Kentucky | Registered Nurses | $38.96 | $17,532 | $130,238 | $166,238 | $49,024 |
| Louisiana | Registered Nurses | $38.57 | $17,357 | $128,934 | $164,934 | $48,893 |
| Maine | Registered Nurses | $41.82 | $18,819 | $139,798 | $175,798 | $49,980 |
| Maryland | Registered Nurses | $47.98 | $21,591 | $160,390 | $196,390 | $52,039 |
| Massachusetts | Registered Nurses | $50.27 | $22,622 | $168,045 | $204,045 | $52,805 |
| Michigan | Registered Nurses | $45.34 | $20,403 | $151,565 | $187,565 | $51,157 |
| Minnesota | Registered Nurses | $48.80 | $21,960 | $163,131 | $199,131 | $52,313 |
| Mississippi | Registered Nurses | $37.06 | $16,677 | $123,886 | $159,886 | $48,389 |
| Missouri | Registered Nurses | $39.32 | $17,694 | $131,441 | $167,441 | $49,144 |
| Montana | Registered Nurses | $41.00 | $18,450 | $137,057 | $173,057 | $49,706 |
| Nebraska | Registered Nurses | $40.74 | $18,333 | $136,188 | $172,188 | $49,619 |
| Nevada | Registered Nurses | $49.84 | $22,428 | $166,608 | $202,608 | $52,661 |
| New Hampshire | Registered Nurses | $47.93 | $21,569 | $160,223 | $196,223 | $52,022 |
| New Jersey | Registered Nurses | $51.20 | $23,040 | $171,154 | $207,154 | $53,115 |
| New Mexico | Registered Nurses | $45.36 | $20,412 | $151,632 | $187,632 | $51,163 |
| New York | Registered Nurses | $52.62 | $23,679 | $175,901 | $211,901 | $53,590 |
| North Carolina | Registered Nurses | $40.56 | $18,252 | $135,586 | $171,586 | $49,559 |
| North Dakota | Registered Nurses | $38.81 | $17,465 | $129,736 | $165,736 | $48,974 |
| Ohio | Registered Nurses | $39.67 | $17,852 | $132,611 | $168,611 | $49,261 |
| Oklahoma | Registered Nurses | $39.87 | $17,942 | $133,280 | $169,280 | $49,328 |
| Oregon | Registered Nurses | $62.02 | $27,909 | $207,324 | $243,324 | $56,732 |
| Pennsylvania | Registered Nurses | $46.36 | $20,862 | $154,975 | $190,975 | $51,497 |
| Puerto Rico | Registered Nurses | $19.17 | $8,627 | $64,083 | $100,083 | $42,408 |
| Rhode Island | Registered Nurses | $48.39 | $21,776 | $161,761 | $197,761 | $52,176 |
| South Carolina | Registered Nurses | $39.60 | $17,820 | $132,377 | $168,377 | $49,238 |
| South Dakota | Registered Nurses | $37.53 | $16,889 | $125,457 | $161,457 | $48,546 |
| Tennessee | Registered Nurses | $39.18 | $17,631 | $130,973 | $166,973 | $49,097 |
| Texas | Registered Nurses | $46.14 | $20,763 | $154,239 | $190,239 | $51,424 |
| Utah | Registered Nurses | $40.67 | $18,302 | $135,954 | $171,954 | $49,595 |
| Vermont | Registered Nurses | $46.86 | $21,087 | $156,646 | $192,646 | $51,665 |
| Virgin Islands | Registered Nurses | $40.44 | $18,198 | $135,185 | $171,185 | $49,519 |
| Virginia | Registered Nurses | $45.00 | $20,250 | $150,429 | $186,429 | $51,043 |
| Washington | Registered Nurses | $59.71 | $26,870 | $199,602 | $235,602 | $55,960 |
| West Virginia | Registered Nurses | $38.52 | $17,334 | $128,767 | $164,767 | $48,877 |
| Wisconsin | Registered Nurses | $45.93 | $20,669 | $153,537 | $189,537 | $51,354 |
| Wyoming | Registered Nurses | $40.27 | $18,122 | $134,617 | $170,617 | $49,462 |
Common questions
- How much does it cost to start a staffing agency in the US?
- Setup itself is modest — around $9,000 for entity formation, insurance, contracts and software. The real cost is working capital: ten contractors on a 52-day cash cycle typically require six figures before the first invoice is paid, unless you use payroll funding or factoring.
- Can I start a staffing agency with no money?
- You can start a permanent recruitment desk on very little, because you invoice after the placement starts and carry no payroll. Contract and temp staffing is different: you pay workers weekly and get paid on 30 to 60 day terms, so you need either funding or capital from day one.
Methodology and sources
- Last updated
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- Free to reuse with attribution to LAUNCH.
- 01
Setup costs are held at $9,000 (entity formation, insurance binders, contracts, software, first-year compliance) and overheads at $4,500 per month over a six-month runway. Both are stated assumptions you can override in the calculator.
- 02
Contractor pay is the state median hourly wage for the highest-employment occupation in the niche, from the BLS OEWS May 2025 release.
- 03
The payroll gap assumes 10 contractors, 40 hours a week, 12.5% employer burden, a 7-day pay cycle and 45-day client payment terms — a 52-day cash cycle.
- 04
The funded column applies a 90% advance rate against invoices, leaving a 10% reserve plus the pay-cycle lag as the residual cash requirement.
Sources
Cite this index
This data is free to quote, cite and republish with attribution and a link.
LAUNCH. (2026). The LAUNCH. Staffing Startup Cost Index. Launch Found. Retrieved from https://launch-rec.com/data/startup-cost-index
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