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Some of the most overlooked aspects when forming a new company are business start up costs that sneak up on you.

Even when an entrepreneur has accounted for most major expenses, there will still be a few costs that might seem small, but they really add up. The start up costs for a business can include many different aspects.

You don’t want to be unprepared for whatever expenses might come your way. Here are 7 business start up costs that you might not have realized:

1. Getting, Training, And Retaining The Best Employees

Finding the right employees for a start up can be tricky. It takes the right type of worker to handle a start up environment. On top of that, it is just very difficult to recruit the top talent, unless you want to spend a lot of money. Even if your business hires someone, that doesn’t mean that they are the “right person” for the job. It might take a long time — and a lot of recruiting costs — to find the right person.

If you find the right workers, training them can also be costly. And if the training was successful, then you have to prepare to retain them. In the future, your best workers might want to leave your company and go to a competitor. This revolving door of losing employees can hurt your business.

2. Insurance

Nearly every single business will need to purchase some type of insurance. Even if you have a home-based business, it helps to purchase some form of insurance or to get an insurance rider for home insurance. This should be put in place to provide protection for your business.

Some of the most common insurances include liability, property, and casualty insurance. This could easily cost tens of thousands of dollars every year. It is one of the business start up costs that some new owners don’t think enough about.

3. Taxes

Taxes can take a big bite right out of your profit. There are numerous federal, state, and local taxes that a business has to take care of. If a business pays the wrong amount in taxes, then that business could owe a lot of money.

To avoid hefty tax fines, a business turns to accounting software or it hires an accountant. However, the costs associated with an accountant can also be expensive. Some new businesses do not factor this cost in.

4. Employee Benefits

Benefits are like the catch-22 for a new business. You’ll probably need to have good benefits in order to attract good workers and grow your business. But in order to get those quality benefits, you’ll need to pay a lot more than what you probably budgeted for.

Some of the leading employee business expenses 2018 include medical insurance and 401(K). Some businesses offer premium benefits such as pet insurance and student loan repayments to entice the best workers to join. If a new business neglects to consider benefits for employees, then that business probably won’t survive that long.

5. Data/Hosting

Tech companies obviously plan for expensive data and hosting costs. Many new non-tech businesses don’t consider how expensive these costs can be. Data usage is imperative for many new businesses. In a matter of no time, a new business can spend a lot of money on data.

Hosting is also one of the biggest start up costs for a business because a good website or mobile prescience is required. Some businesses might try to cut corners when it comes to hosting, and this could backfire when there is a surge of customers on a website. Hosting can be among the largest business start up costs, but it is important.

6. Acquiring New Customers

Finding customers — especially new ones — is easier said than done. Even if your product or service is amazing, it doesn’t mean you are getting new customers.

Many business underestimate how expensive a new customer really is. Once a business has received a new customer, then there’s a new — and costly — challenge of retaining that customer. It can be an endless cycle and a growing business expense.

7. Legal Fees Can Increase Business Start Up Costs

You don’t have to be a lawyer to know that legal fees can be expensive for a business, especially a new one. From incorporating the business to protecting intellectual property, paying for legal assistance is importance. However, it can also be one of the most expensive business start up costs.

Some start-ups are using free legal documents online to dodge the costs. If these documents meet your needs, then that could help you. If not, you will need to speak to a lawyer.