3 answers
Natalie
Student
7
Questions
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What is the average cost for starting a business in the United States vs overseas like germany??
I would like to travel around the world until I find a country I would like to live in after I start my pastry baking business there.
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2 answers
Tiana Haddad
10
Answers
Kissimmee, Florida
Updated
Tiana’s Answer
Natalie,
Since you’re based in Germany, you're already in one of the best countries to start a pastry business especially with its strong baking culture, love for quality ingredients, and respect for craftsmanship.
Germany makes it really affordable and straightforward to register a small business (Kleingewerbe), often costing just €20–€40. You'll need to register with your local Gewerbeamt (trade office), and depending on your pastry setup, possibly with the health department (Gesundheitsamt). Renting a small kitchen or sharing space with an existing bakery can help you keep initial costs low. You can start small—selling at markets or cafés—and build a local following while exploring nearby countries to see where else your baking style might flourish.
Below is the comparison between US and Germany to open business:
United States – Average Startup Cost
Business registration (LLC/Sole Prop): $50–$500 depending on the state
Licenses & Permits (food handling, local laws): $200–$2,000
Insurance: $500–$2,000/year
Commercial kitchen or equipment: $2,000–$10,000+
Website, branding, etc.: $500–$2,000
Total estimate: $5,000–$20,000 (can start lower from home)
Note: In some U.S. states, home baking is legal under “Cottage Food Laws,” which can reduce your cost to as low as $500–$2,000.
........
Germany ( Average Startup Cost)
Business registration (Gewerbeanmeldung): €20–€50
Chamber of Commerce registration : €50–€200
Permits & hygiene (for food businesses): €100–€1,000
Insurance (liability, health): €300–€1,200/year
Equipment or shared kitchen space: €3,000–€10,000
Website, marketing: €300–€1,000
Total estimate: €4,000–€12,000 (depending on setup)
Summary:
U.S. Germany
Low-end $2,000–$5,000 €3,000–€5,000
Full setup $10,000–$20,000+ €8,000–€12,000+
Permits Can vary a lot by state More structured/regulated
Home baking Easier in some states Tougher due to EU hygiene laws.
Start a checklist to start your pastry business
Since you’re based in Germany, you're already in one of the best countries to start a pastry business especially with its strong baking culture, love for quality ingredients, and respect for craftsmanship.
Germany makes it really affordable and straightforward to register a small business (Kleingewerbe), often costing just €20–€40. You'll need to register with your local Gewerbeamt (trade office), and depending on your pastry setup, possibly with the health department (Gesundheitsamt). Renting a small kitchen or sharing space with an existing bakery can help you keep initial costs low. You can start small—selling at markets or cafés—and build a local following while exploring nearby countries to see where else your baking style might flourish.
Below is the comparison between US and Germany to open business:
United States – Average Startup Cost
Business registration (LLC/Sole Prop): $50–$500 depending on the state
Licenses & Permits (food handling, local laws): $200–$2,000
Insurance: $500–$2,000/year
Commercial kitchen or equipment: $2,000–$10,000+
Website, branding, etc.: $500–$2,000
Total estimate: $5,000–$20,000 (can start lower from home)
Note: In some U.S. states, home baking is legal under “Cottage Food Laws,” which can reduce your cost to as low as $500–$2,000.
........
Germany ( Average Startup Cost)
Business registration (Gewerbeanmeldung): €20–€50
Chamber of Commerce registration : €50–€200
Permits & hygiene (for food businesses): €100–€1,000
Insurance (liability, health): €300–€1,200/year
Equipment or shared kitchen space: €3,000–€10,000
Website, marketing: €300–€1,000
Total estimate: €4,000–€12,000 (depending on setup)
Summary:
U.S. Germany
Low-end $2,000–$5,000 €3,000–€5,000
Full setup $10,000–$20,000+ €8,000–€12,000+
Permits Can vary a lot by state More structured/regulated
Home baking Easier in some states Tougher due to EU hygiene laws.
Tiana recommends the following next steps:
Dr Fisch
Flight Attendant
79
Answers
Denver, Colorado
Updated
Dr’s Answer
I'm not sure if Germany would be the right place for you. Germans love their regular kinds of pastries, which you can probably find every few blocks. The market is saturated. Also, there are certain ways to do things in Germany. First you'd go to a pastry training or school, then find an apprenticeship. You might work in a bakery or restaurant for quite a while to really learn the craft, and then perhaps you might find an opportunity to open your own place. I the US and definitely in many other countries, it would be easier to just start up your own place and, if you're good, it'll work. If not, it won't.
I like the "travel around the world" part, testing out different pastries in different countries. Sounds like a dream plan! Yum.
I like the "travel around the world" part, testing out different pastries in different countries. Sounds like a dream plan! Yum.
Thank you.
Natalie