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How much does it cost to take a small company public?
A direct listing typically costs $300,000 to $500,000 in third-party costs, and it can be paid entirely from the pre-listing raise rather than the founder's pocket. A reverse merger typically runs $400,000 to $600,000 all-in, plus the equity the shell's shareholders keep. An IPO costs more, plus underwriting fees of 6% to 8% of the raise. Staying public costs about $300,000 to $500,000 a year for an early-stage OTC company, and $600,000 to $1 million or more on Nasdaq.
Joel Arberman, Meraki Partners · Updated October 25, 2026. Based on 17 companies taken public since 1999: 11 by direct listing, 4 by reverse merger and 2 by IPO.
Cost to go public in 2026, by path
| Direct listing | Reverse merger | IPO | |
|---|---|---|---|
| One-time third-party costs | $300,000 to $500,000 | $400,000 to $600,000, including a shell of about $300,000 | $600,000 or more; large IPOs can cost millions |
| Other costs | None | Equity kept by the shell's shareholders | Underwriting fees of 6% to 8% of the raise, plus expenses and warrants |
| Typical timing | About 10 months | About 6 months | About 7 to 8 months |
| Ongoing cost per year | About $300,000 to $500,000 on the OTC market | About $300,000 to $500,000 on the OTC market | $600,000 to $1 million or more on Nasdaq |
Who pays the cost of going public?
The company, usually from the private placement it raises before listing, typically $500,000 to $2 million from about 50 people who know the founder. The founder doesn't have to pay it personally. See raising before you go public.
What are the one-time costs?
Securities legal work, the audit, accounting preparation, SEC filing, transfer agent and market maker setup, the OTC Markets application and the adviser's fees. The amounts depend on the providers, the company's industry, size and complexity, and how organized its records are.
What does it cost to stay public?
For an early-stage company on the OTC market, about $300,000 to $500,000 a year: audit and quarterly reviews, legal, filing, insurance, OTC Markets fees and management time. On Nasdaq, $600,000 to $1 million or more. See the ongoing costs.
What does Meraki Partners charge?
Preparation fees start at about $10,000, and the listing work is billed monthly plus equity or options. See what a going-public consultant charges.
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