Company startup costs refer to the expenses that are incurred when starting a new business. These costs can include legal fees, office rental and set up, inventory, marketing and advertising expenses, salaries, equipment, technology and other items required to get the business running effectively. Start-up costs are typically higher in the first year of business, with the majority of these costs necessary to establish the company’s presence in the market. A savvy entrepreneur understands that these start-up costs will pave the way for future success, so it is important to plan carefully and budget correctly.