Office space costs $4,000 to $12,000 per employee annually depending on city and square footage. Major metros like New York and San Francisco exceed $10,000 per employee per year, while secondary markets average $5,000-$7,000.
Fully remote teams save 40-60% on real estate, utilities, and office amenities compared to hybrid teams. However, remote teams may spend more on co-working stipends, home office equipment, and travel for in-person gatherings.
Every state where you have a remote employee creates legal obligations: state payroll registration, local tax withholding, multi-state workers' comp, and state-specific leave laws. A 20-person company with employees in 5 states faces 5 distinct compliance environments.
Remote work tools including Slack, Zoom, Notion, project management, and security software typically cost $50-$150 per employee per month. A 20-person remote team spends roughly $12,000-$36,000 annually on collaboration tools.