How Much Does It Cost to Start a Business in Montgomery, AL?

Population: 200,603 | Cost of living: 88.4% | Sales tax: 10% | Min wage: $7.25

Startup Costs by Industry in Montgomery

Industry Estimated Startup Cost National Average Local Difference
Accounting Firm $15,000 - $61,000 $15,000 - $60,000 +1%
Acupuncture Practice $7,000 - $43,000 $10,000 - $60,000 -29%
Affiliate Marketing Business $1,000 - $11,000 $500 - $5,000 +118%
After-School Program $16,000 - $97,000 $20,000 - $100,000 -6%
AI Consulting Business $6,000 - $47,000 $2,000 - $50,000 +2%
Airbnb Rental Business $9,000 - $49,000 $10,000 - $50,000 -3%
Amazon FBA Business $6,000 - $63,000 $5,000 - $50,000 +25%
App Development $15,000 - $97,000 $15,000 - $100,000 -3%
Aquaponics Farm $16,000 - $125,000 $20,000 - $150,000 -17%
Arcade & Gaming Center $80,000 - $469,000 $100,000 - $500,000 -9%
ATM Business $4,000 - $53,000 $3,000 - $30,000 +73%
Auto Detailing $8,000 - $60,000 $5,000 - $75,000 -15%
Auto Repair Shop $50,000 - $258,000 $50,000 - $300,000 -12%
Axe Throwing Venue $35,000 - $181,000 $50,000 - $200,000 -14%
Bakery $47,000 - $204,000 $60,000 - $250,000 -19%
Bar $75,000 - $302,000 $100,000 - $400,000 -25%
Barbershop $34,000 - $128,000 $50,000 - $150,000 -19%
Beauty Supply Store $19,000 - $91,000 $30,000 - $150,000 -39%
Bed & Breakfast $86,000 - $426,000 $100,000 - $500,000 -15%
Beekeeping Business $11,000 - $53,000 $10,000 - $50,000 +7%
Bike Shop $19,000 - $119,000 $30,000 - $200,000 -40%
Auto Body Shop $30,000 - $174,000 $50,000 - $300,000 -42%
Bookkeeping Service $3,000 - $17,000 $2,000 - $10,000 +67%
Bookstore $37,000 - $153,000 $40,000 - $200,000 -21%
Boutique $39,000 - $195,000 $50,000 - $250,000 -22%
Bowling Alley $369,000 - $2,294,000 $500,000 - $3,000,000 -24%
Brewery $181,000 - $1,017,000 $250,000 - $1,500,000 -32%
Campground $84,000 - $799,000 $100,000 - $1,000,000 -20%
Candy Shop $19,000 - $93,000 $20,000 - $100,000 -7%
Car Rental Business $50,000 - $473,000 $50,000 - $500,000 -5%
Car Wash $69,000 - $438,000 $75,000 - $500,000 -12%
Carpentry Business $18,000 - $91,000 $15,000 - $75,000 +21%
Carpet Cleaning Business $4,000 - $27,000 $5,000 - $30,000 -11%
Catering Business $22,000 - $119,000 $20,000 - $125,000 -3%
Chiropractic $75,000 - $272,000 $100,000 - $350,000 -23%
Christmas Tree Farm $22,000 - $127,000 $20,000 - $100,000 +24%
Cleaning Service $6,000 - $43,000 $5,000 - $50,000 -11%
Clothing Store $16,000 - $91,000 $25,000 - $150,000 -39%
Coding Bootcamp $7,000 - $64,000 $10,000 - $100,000 -35%
Coffee Roastery $20,000 - $248,000 $20,000 - $300,000 -16%
Coffee Shop $53,000 - $209,000 $80,000 - $300,000 -31%
Computer Repair Business $4,000 - $27,000 $5,000 - $30,000 -11%
Concrete Business $28,000 - $151,000 $30,000 - $150,000 -1%
Construction Company $57,000 - $488,000 $50,000 - $500,000 -1%
Consulting Business $9,000 - $61,000 $5,000 - $50,000 +27%
Convenience Store $40,000 - $258,000 $50,000 - $350,000 -26%
Courier & Delivery Service $7,000 - $53,000 $5,000 - $50,000 +9%
Coworking Space $59,000 - $285,000 $100,000 - $500,000 -43%
Cybersecurity Firm $7,000 - $64,000 $10,000 - $100,000 -35%
Dance Studio $23,000 - $110,000 $30,000 - $150,000 -26%
Daycare $38,000 - $156,000 $50,000 - $300,000 -45%
Demolition Company $60,000 - $279,000 $50,000 - $250,000 +13%
Dental Practice $283,000 - $699,000 $350,000 - $750,000 -11%
Digital Marketing $8,000 - $51,000 $5,000 - $50,000 +7%
Distillery $75,000 - $687,000 $100,000 - $1,000,000 -31%
Dog Daycare $29,000 - $199,000 $40,000 - $350,000 -42%
Dog Grooming Business $9,000 - $50,000 $10,000 - $50,000 -2%
Dog Training Business $3,000 - $22,000 $2,000 - $20,000 +14%
Dog Walking Business $2,000 - $8,000 $500 - $5,000 +82%
Donut Shop $40,000 - $192,000 $50,000 - $250,000 -23%
Driving School $22,000 - $97,000 $25,000 - $100,000 -5%
Drone Business $4,000 - $38,000 $3,000 - $50,000 -21%
Dropshipping Business $2,000 - $16,000 $500 - $10,000 +71%
Electrical $17,000 - $91,000 $15,000 - $100,000 -6%
Embroidery & Custom Apparel $7,000 - $38,000 $10,000 - $50,000 -25%
Escape Room $39,000 - $249,000 $50,000 - $300,000 -18%
Etsy Shop $1,000 - $10,000 $500 - $5,000 +100%
Event Planning Business $7,000 - $35,000 $5,000 - $30,000 +20%
Excavation Business $85,000 - $381,000 $80,000 - $350,000 +8%
Farm $39,000 - $435,000 $50,000 - $500,000 -14%
Fast Food Franchise $114,000 - $1,682,000 $100,000 - $2,500,000 -31%
Fencing Business $7,000 - $38,000 $10,000 - $50,000 -25%
Financial Advisory Practice $7,000 - $38,000 $10,000 - $50,000 -25%
Fitness Studio $30,000 - $174,000 $50,000 - $300,000 -42%
Flooring Business $12,000 - $72,000 $10,000 - $60,000 +20%
Flower Shop $27,000 - $139,000 $30,000 - $175,000 -19%
Food Delivery Service $14,000 - $79,000 $10,000 - $75,000 +9%
Food Truck $56,000 - $212,000 $50,000 - $200,000 +7%
Franchise Business $34,000 - $911,000 $20,000 - $1,000,000 -7%
Garage Door Business $7,000 - $38,000 $10,000 - $50,000 -25%
Gas Station $146,000 - $1,116,000 $250,000 - $2,000,000 -44%
General Contractor $32,000 - $192,000 $30,000 - $200,000 -3%
Ghost Kitchen $19,000 - $93,000 $20,000 - $100,000 -7%
Gift Shop $27,000 - $125,000 $30,000 - $150,000 -16%
Glamping Business $13,000 - $119,000 $20,000 - $200,000 -40%
Graphic Design Business $5,000 - $25,000 $3,000 - $20,000 +30%
Greenhouse Business $22,000 - $177,000 $30,000 - $200,000 -13%
Grocery Store $88,000 - $1,132,000 $80,000 - $2,000,000 -41%
Gym $73,000 - $361,000 $50,000 - $500,000 -21%
Hair Salon $48,000 - $178,000 $60,000 - $200,000 -13%
Handyman $8,000 - $45,000 $5,000 - $40,000 +18%
Home Health Care Agency $43,000 - $297,000 $40,000 - $350,000 -13%
Home Inspection Business $6,000 - $32,000 $5,000 - $25,000 +27%
Hostel $30,000 - $174,000 $50,000 - $300,000 -42%
Hotel $442,000 - $4,032,000 $500,000 - $5,000,000 -19%
HVAC $25,000 - $129,000 $20,000 - $150,000 -9%
Ice Cream Shop $45,000 - $237,000 $50,000 - $300,000 -19%
Insurance Agency $18,000 - $75,000 $20,000 - $80,000 -7%
Interior Design Business $4,000 - $27,000 $5,000 - $30,000 -11%
IT Services $15,000 - $93,000 $15,000 - $100,000 -6%
Jewelry Store $30,000 - $147,000 $50,000 - $250,000 -41%
Juice Bar $33,000 - $158,000 $40,000 - $200,000 -20%
Junk Removal Business $4,000 - $38,000 $5,000 - $50,000 -24%
Landscaping $13,000 - $77,000 $10,000 - $80,000 Avg
Language School $7,000 - $51,000 $10,000 - $75,000 -32%
Laundromat $130,000 - $699,000 $200,000 - $1,000,000 -31%
Lavender Farm $13,000 - $64,000 $20,000 - $100,000 -36%
Law Firm $36,000 - $164,000 $50,000 - $200,000 -20%
Liquor Store $75,000 - $291,000 $100,000 - $400,000 -27%
Locksmith Business $4,000 - $27,000 $5,000 - $30,000 -11%
Managed IT Services $7,000 - $51,000 $10,000 - $75,000 -32%
Manufacturing Business $55,000 - $931,000 $50,000 - $1,000,000 -6%
Marketing Agency $15,000 - $83,000 $10,000 - $75,000 +15%
Martial Arts Studio $23,000 - $113,000 $30,000 - $150,000 -24%
Masonry Business $18,000 - $94,000 $15,000 - $80,000 +18%
Massage Therapy Practice $4,000 - $38,000 $5,000 - $50,000 -24%
Meal Prep Business $14,000 - $73,000 $15,000 - $100,000 -24%
Med Spa $183,000 - $523,000 $250,000 - $600,000 -17%
Medical Practice $83,000 - $466,000 $70,000 - $500,000 -4%
Microgreens Farm $3,000 - $21,000 $2,000 - $15,000 +41%
Mini Golf Course $69,000 - $385,000 $100,000 - $500,000 -24%
Mobile Mechanic $7,000 - $51,000 $5,000 - $50,000 +5%
Moving Company $25,000 - $129,000 $20,000 - $150,000 -9%
Mushroom Farm $9,000 - $66,000 $10,000 - $80,000 -17%
Music School $22,000 - $106,000 $25,000 - $120,000 -12%
Nail Salon $30,000 - $120,000 $40,000 - $150,000 -21%
Notary Business $2,000 - $14,000 $1,000 - $5,000 +167%
Plant Nursery $23,000 - $138,000 $25,000 - $150,000 -8%
Oil Change Shop $37,000 - $202,000 $40,000 - $250,000 -18%
Online Coaching Business $2,000 - $22,000 $1,000 - $10,000 +118%
Online Store $3,000 - $43,000 $2,000 - $30,000 +44%
Painting $9,000 - $51,000 $5,000 - $50,000 +9%
Pawn Shop $30,000 - $119,000 $50,000 - $200,000 -40%
Personal Training $11,000 - $80,000 $10,000 - $100,000 -17%
Pest Control $15,000 - $76,000 $10,000 - $75,000 +7%
Pet Boarding Facility $37,000 - $314,000 $50,000 - $500,000 -36%
Pet Sitting Business $2,000 - $7,000 $500 - $5,000 +64%
Pet Store $46,000 - $234,000 $60,000 - $300,000 -22%
Pharmacy $246,000 - $1,279,000 $250,000 - $1,700,000 -22%
Phone Repair Shop $7,000 - $38,000 $10,000 - $50,000 -25%
Photography Business $11,000 - $67,000 $10,000 - $50,000 +30%
Physical Therapy Clinic $30,000 - $174,000 $50,000 - $300,000 -42%
Pilates Studio $19,000 - $91,000 $30,000 - $150,000 -39%
Pizza Shop $57,000 - $225,000 $75,000 - $300,000 -25%
Plumbing $16,000 - $88,000 $15,000 - $100,000 -10%
Podcast Studio $14,000 - $71,000 $15,000 - $80,000 -11%
Pool Construction Business $30,000 - $174,000 $50,000 - $300,000 -42%
Pool Cleaning & Service $4,000 - $24,000 $5,000 - $25,000 -7%
Preschool $60,000 - $233,000 $80,000 - $300,000 -23%
Pressure Washing Business $3,000 - $24,000 $3,000 - $20,000 +17%
Print-on-Demand Business $2,000 - $13,000 $500 - $8,000 +76%
Printing Business $42,000 - $211,000 $50,000 - $250,000 -16%
Property Management Company $5,000 - $30,000 $5,000 - $50,000 -36%
Real Estate Agency $24,000 - $100,000 $25,000 - $100,000 -1%
Real Estate Investment Business $21,000 - $363,000 $20,000 - $500,000 -26%
Recording Studio $36,000 - $173,000 $50,000 - $200,000 -16%
Restaurant $72,000 - $283,000 $75,000 - $250,000 +9%
Retail Store $35,000 - $192,000 $50,000 - $250,000 -24%
Roofing $25,000 - $137,000 $20,000 - $150,000 -5%
SaaS Company $23,000 - $194,000 $25,000 - $200,000 -4%
Security Company $15,000 - $103,000 $10,000 - $100,000 +7%
Self-Storage Facility $275,000 - $3,138,000 $500,000 - $5,000,000 -38%
Senior Care Facility $91,000 - $851,000 $100,000 - $1,500,000 -41%
SEO Agency $9,000 - $52,000 $5,000 - $50,000 +11%
Sign Shop $13,000 - $64,000 $20,000 - $100,000 -36%
Smoke Shop $19,000 - $91,000 $30,000 - $150,000 -39%
Solar Installation Business $30,000 - $174,000 $50,000 - $300,000 -42%
Spa $72,000 - $275,000 $100,000 - $350,000 -23%
Staffing Agency $30,000 - $135,000 $30,000 - $150,000 -8%
Subscription Box Business $6,000 - $55,000 $5,000 - $50,000 +11%
Swim School $30,000 - $174,000 $50,000 - $300,000 -42%
Tanning Salon $30,000 - $147,000 $50,000 - $250,000 -41%
Tattoo Shop $19,000 - $91,000 $30,000 - $150,000 -39%
Tax Preparation Business $8,000 - $42,000 $8,000 - $40,000 +4%
Tech Startup $19,000 - $143,000 $20,000 - $150,000 -5%
Thrift Store $16,000 - $88,000 $20,000 - $120,000 -26%
Tire Shop $48,000 - $228,000 $50,000 - $250,000 -8%
Tour Company $12,000 - $83,000 $10,000 - $80,000 +6%
Towing Company $50,000 - $259,000 $50,000 - $300,000 -12%
Trampoline Park $314,000 - $1,441,000 $500,000 - $2,000,000 -30%
Travel Agency $6,000 - $36,000 $5,000 - $30,000 +20%
Tree Service $10,000 - $64,000 $15,000 - $100,000 -36%
Trucking Company $21,000 - $286,000 $15,000 - $400,000 -26%
Tutoring Business $3,000 - $18,000 $2,000 - $15,000 +24%
Used Car Dealer $42,000 - $297,000 $50,000 - $350,000 -15%
Vape Shop $25,000 - $116,000 $25,000 - $150,000 -19%
Vending Machine Business $8,000 - $72,000 $5,000 - $50,000 +45%
Veterinary Clinic $237,000 - $1,380,000 $300,000 - $2,000,000 -30%
Videography Business $13,000 - $63,000 $10,000 - $60,000 +9%
Virtual Assistant Business $2,000 - $13,000 $500 - $3,000 +329%
Waste Management Business $35,000 - $419,000 $30,000 - $500,000 -14%
Web Design Business $4,000 - $29,000 $3,000 - $25,000 +18%
Wedding Planning Business $7,000 - $34,000 $5,000 - $30,000 +17%
Welding Business $19,000 - $105,000 $15,000 - $100,000 +8%
Window Cleaning Business $3,000 - $21,000 $2,000 - $15,000 +41%
Winery $68,000 - $781,000 $100,000 - $1,000,000 -23%
Yoga Studio $37,000 - $145,000 $50,000 - $200,000 -27%
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Local Market Factors in Montgomery

88.4%

Cost of Living Index

$10-$24

Commercial Rent ($/sqft/yr)

0.82x

Labor Rate Index

10%

Sales Tax Rate

Local Permit Fees in Montgomery

PermitCost Range
Business License $25 - $150
Food Service Permit $150 - $400
Liquor License $500 - $3,000
General Contractor License $75 - $250
Home Occupation Permit $0 - $50

About Starting a Business in Montgomery

Montgomery offers among the lowest startup costs in the Southeast, with affordable commercial rents and a labor pool shaped by Maxwell Air Force Base and several universities. The city's role as Alabama's capital creates steady demand for government-adjacent consulting, food service, and professional services.

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