The True Cost of Starting My Side Hustle (And Why I Chose a Private Ltd Over Sole Proprietorship)

Introduction

In my last post, I shared my plan to launch a low-time, high-impact side business, one designed to eventually replace 25% of my annual income by December 2026 without overtaking my full-time job.

But before the first dollar rolls in, there’s a financial hurdle: startup costs.

After months of research, I’ve crunched the numbers, here’s exactly what it costs to set up this business (and why I’m opting for a Private Limited (Pte Ltd) structure instead of the cheaper Sole Proprietorship route).

Upfront Costs (CapEx) – The $10,000 Kickstart

To launch properly, I budgeted ~$10,000 SGD in initial capital. Here’s the breakdown:

  • Corporate secretary firms: $500 
  • ACRA Registration: $300
  • Company Name Reservation: $15
  • Domain + Website Hosting: $200/year
  • Logo & Branding (Fiverr/Canva Pro): $100-$500
  • Office Security Deposit (3 months): $2,100 
  • Kick Start Marketing: $3,000
  • Office Furniture: $4,000
Monthly Costs (OpEx) – $2,000 SGD/Month

Once operational, these are my fixed monthly expenses:
  • Rental: $700
  • Utilities: $300
  • Marketing: $200
  • MISC: $800 (Freelancers, transport etc)
Why I Chose Pte Ltd (Despite Higher Costs)
Many advised me to start as a Sole Proprietor to save money. Here’s why I ignored them:

1. Liability Protection
  • Sole Prop = Unlimited Risk (Debtors can sue me personally).
  • Pte Ltd = My HDB/Savings Are Safe (Only the company’s assets are at stake).
2. Tax Benefits & Credibility
  • Corporate Tax Rate: ~17% (vs. personal income tax at 20%+).
  • Easier to Secure Loans/Grants (Govt. schemes favor incorporated businesses).
  • Client Trust: "Pte Ltd" looks more professional than "Sole Proprietor."
3. Scalability
  • If this grows beyond 25% of my income, Pte Ltd makes it easier to onboard investors, hire employees, or sell the business.
Why This Matters

Most side hustles fail because they’re underfunded or poorly structured. By:
  • Investing $10K upfront (for long-term stability)
  • Choosing Pte Ltd (for liability protection)
  • Budgeting $2K/month (sustainable scaling)
I’m treating this like a real business—not a hobby.

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