How Much Does It Cost to Start a Business in Phoenix, AZ?

Population: 1,608,139 | Cost of living: 103.4% | Sales tax: 8.6% | Min wage: $14.35

Startup Costs by Industry in Phoenix

Industry Estimated Startup Cost National Average Local Difference
Accounting Firm $19,000 - $76,000 $15,000 - $60,000 +27%
Acupuncture Practice $10,000 - $59,000 $10,000 - $60,000 -1%
Affiliate Marketing Business $3,000 - $14,000 $500 - $5,000 +209%
After-School Program $21,000 - $121,000 $20,000 - $100,000 +18%
AI Consulting Business $7,000 - $52,000 $2,000 - $50,000 +13%
Airbnb Rental Business $11,000 - $53,000 $10,000 - $50,000 +7%
Amazon FBA Business $8,000 - $68,000 $5,000 - $50,000 +38%
App Development $17,000 - $116,000 $15,000 - $100,000 +16%
Aquaponics Farm $18,000 - $138,000 $20,000 - $150,000 -8%
Arcade & Gaming Center $94,000 - $572,000 $100,000 - $500,000 +11%
ATM Business $4,000 - $53,000 $3,000 - $30,000 +73%
Auto Detailing $9,000 - $64,000 $5,000 - $75,000 -9%
Auto Repair Shop $59,000 - $315,000 $50,000 - $300,000 +7%
Axe Throwing Venue $45,000 - $244,000 $50,000 - $200,000 +16%
Bakery $56,000 - $243,000 $60,000 - $250,000 -4%
Bar $87,000 - $361,000 $100,000 - $400,000 -10%
Barbershop $42,000 - $155,000 $50,000 - $150,000 -2%
Beauty Supply Store $27,000 - $131,000 $30,000 - $150,000 -12%
Bed & Breakfast $124,000 - $616,000 $100,000 - $500,000 +23%
Beekeeping Business $12,000 - $57,000 $10,000 - $50,000 +15%
Bike Shop $27,000 - $172,000 $30,000 - $200,000 -13%
Auto Body Shop $44,000 - $254,000 $50,000 - $300,000 -15%
Bookkeeping Service $3,000 - $18,000 $2,000 - $10,000 +75%
Bookstore $44,000 - $187,000 $40,000 - $200,000 -4%
Boutique $47,000 - $235,000 $50,000 - $250,000 -6%
Bowling Alley $446,000 - $2,879,000 $500,000 - $3,000,000 -5%
Brewery $234,000 - $1,323,000 $250,000 - $1,500,000 -11%
Campground $113,000 - $1,140,000 $100,000 - $1,000,000 +14%
Candy Shop $23,000 - $113,000 $20,000 - $100,000 +13%
Car Rental Business $53,000 - $494,000 $50,000 - $500,000 -1%
Car Wash $85,000 - $513,000 $75,000 - $500,000 +4%
Carpentry Business $20,000 - $102,000 $15,000 - $75,000 +36%
Carpet Cleaning Business $6,000 - $35,000 $5,000 - $30,000 +17%
Catering Business $26,000 - $136,000 $20,000 - $125,000 +12%
Chiropractic $86,000 - $313,000 $100,000 - $350,000 -11%
Christmas Tree Farm $27,000 - $166,000 $20,000 - $100,000 +61%
Cleaning Service $7,000 - $47,000 $5,000 - $50,000 -2%
Clothing Store $23,000 - $131,000 $25,000 - $150,000 -12%
Coding Bootcamp $10,000 - $91,000 $10,000 - $100,000 -8%
Coffee Roastery $23,000 - $284,000 $20,000 - $300,000 -4%
Coffee Shop $63,000 - $247,000 $80,000 - $300,000 -18%
Computer Repair Business $6,000 - $35,000 $5,000 - $30,000 +17%
Concrete Business $30,000 - $157,000 $30,000 - $150,000 +4%
Construction Company $60,000 - $510,000 $50,000 - $500,000 +4%
Consulting Business $10,000 - $66,000 $5,000 - $50,000 +38%
Convenience Store $50,000 - $330,000 $50,000 - $350,000 -5%
Courier & Delivery Service $8,000 - $57,000 $5,000 - $50,000 +18%
Coworking Space $87,000 - $419,000 $100,000 - $500,000 -16%
Cybersecurity Firm $10,000 - $91,000 $10,000 - $100,000 -8%
Dance Studio $30,000 - $142,000 $30,000 - $150,000 -4%
Daycare $47,000 - $198,000 $50,000 - $300,000 -30%
Demolition Company $62,000 - $286,000 $50,000 - $250,000 +16%
Dental Practice $309,000 - $773,000 $350,000 - $750,000 -2%
Digital Marketing $10,000 - $63,000 $5,000 - $50,000 +33%
Distillery $96,000 - $891,000 $100,000 - $1,000,000 -10%
Dog Daycare $41,000 - $305,000 $40,000 - $350,000 -11%
Dog Grooming Business $12,000 - $66,000 $10,000 - $50,000 +30%
Dog Training Business $4,000 - $28,000 $2,000 - $20,000 +45%
Dog Walking Business $3,000 - $11,000 $500 - $5,000 +155%
Donut Shop $50,000 - $243,000 $50,000 - $250,000 -2%
Driving School $25,000 - $110,000 $25,000 - $100,000 +8%
Drone Business $5,000 - $41,000 $3,000 - $50,000 -13%
Dropshipping Business $3,000 - $19,000 $500 - $10,000 +110%
Electrical $19,000 - $95,000 $15,000 - $100,000 -1%
Embroidery & Custom Apparel $10,000 - $51,000 $10,000 - $50,000 +2%
Escape Room $52,000 - $339,000 $50,000 - $300,000 +12%
Etsy Shop $3,000 - $12,000 $500 - $5,000 +173%
Event Planning Business $8,000 - $39,000 $5,000 - $30,000 +34%
Excavation Business $88,000 - $391,000 $80,000 - $350,000 +11%
Farm $46,000 - $582,000 $50,000 - $500,000 +14%
Fast Food Franchise $149,000 - $2,469,000 $100,000 - $2,500,000 +1%
Fencing Business $10,000 - $51,000 $10,000 - $50,000 +2%
Financial Advisory Practice $10,000 - $51,000 $10,000 - $50,000 +2%
Fitness Studio $44,000 - $254,000 $50,000 - $300,000 -15%
Flooring Business $14,000 - $76,000 $10,000 - $60,000 +29%
Flower Shop $32,000 - $166,000 $30,000 - $175,000 -3%
Food Delivery Service $16,000 - $91,000 $10,000 - $75,000 +26%
Food Truck $62,000 - $228,000 $50,000 - $200,000 +16%
Franchise Business $35,000 - $1,257,000 $20,000 - $1,000,000 +27%
Garage Door Business $10,000 - $51,000 $10,000 - $50,000 +2%
Gas Station $215,000 - $1,651,000 $250,000 - $2,000,000 -17%
General Contractor $34,000 - $201,000 $30,000 - $200,000 +2%
Ghost Kitchen $23,000 - $113,000 $20,000 - $100,000 +13%
Gift Shop $32,000 - $153,000 $30,000 - $150,000 +3%
Glamping Business $18,000 - $172,000 $20,000 - $200,000 -14%
Graphic Design Business $7,000 - $28,000 $3,000 - $20,000 +52%
Greenhouse Business $26,000 - $198,000 $30,000 - $200,000 -3%
Grocery Store $112,000 - $1,487,000 $80,000 - $2,000,000 -23%
Gym $87,000 - $432,000 $50,000 - $500,000 -6%
Hair Salon $58,000 - $213,000 $60,000 - $200,000 +4%
Handyman $10,000 - $48,000 $5,000 - $40,000 +29%
Home Health Care Agency $49,000 - $338,000 $40,000 - $350,000 -1%
Home Inspection Business $7,000 - $33,000 $5,000 - $25,000 +33%
Hostel $44,000 - $254,000 $50,000 - $300,000 -15%
Hotel $575,000 - $5,623,000 $500,000 - $5,000,000 +13%
HVAC $27,000 - $134,000 $20,000 - $150,000 -5%
Ice Cream Shop $53,000 - $275,000 $50,000 - $300,000 -6%
Insurance Agency $22,000 - $91,000 $20,000 - $80,000 +13%
Interior Design Business $6,000 - $35,000 $5,000 - $30,000 +17%
IT Services $17,000 - $99,000 $15,000 - $100,000 +1%
Jewelry Store $44,000 - $213,000 $50,000 - $250,000 -14%
Juice Bar $40,000 - $188,000 $40,000 - $200,000 -5%
Junk Removal Business $6,000 - $51,000 $5,000 - $50,000 +4%
Landscaping $15,000 - $81,000 $10,000 - $80,000 +7%
Language School $10,000 - $71,000 $10,000 - $75,000 -5%
Laundromat $152,000 - $847,000 $200,000 - $1,000,000 -17%
Lavender Farm $18,000 - $91,000 $20,000 - $100,000 -9%
Law Firm $44,000 - $204,000 $50,000 - $200,000 -1%
Liquor Store $96,000 - $373,000 $100,000 - $400,000 -6%
Locksmith Business $6,000 - $35,000 $5,000 - $30,000 +17%
Managed IT Services $10,000 - $71,000 $10,000 - $75,000 -5%
Manufacturing Business $64,000 - $1,096,000 $50,000 - $1,000,000 +10%
Marketing Agency $18,000 - $101,000 $10,000 - $75,000 +40%
Martial Arts Studio $29,000 - $142,000 $30,000 - $150,000 -5%
Masonry Business $20,000 - $98,000 $15,000 - $80,000 +24%
Massage Therapy Practice $6,000 - $51,000 $5,000 - $50,000 +4%
Meal Prep Business $18,000 - $88,000 $15,000 - $100,000 -8%
Med Spa $202,000 - $590,000 $250,000 - $600,000 -7%
Medical Practice $101,000 - $591,000 $70,000 - $500,000 +21%
Microgreens Farm $3,000 - $21,000 $2,000 - $15,000 +41%
Mini Golf Course $90,000 - $523,000 $100,000 - $500,000 +2%
Mobile Mechanic $8,000 - $54,000 $5,000 - $50,000 +13%
Moving Company $27,000 - $134,000 $20,000 - $150,000 -5%
Mushroom Farm $12,000 - $86,000 $10,000 - $80,000 +9%
Music School $27,000 - $130,000 $25,000 - $120,000 +8%
Nail Salon $36,000 - $144,000 $40,000 - $150,000 -5%
Notary Business $2,000 - $14,000 $1,000 - $5,000 +167%
Plant Nursery $29,000 - $174,000 $25,000 - $150,000 +16%
Oil Change Shop $46,000 - $247,000 $40,000 - $250,000 +1%
Online Coaching Business $4,000 - $25,000 $1,000 - $10,000 +164%
Online Store $4,000 - $45,000 $2,000 - $30,000 +53%
Painting $10,000 - $55,000 $5,000 - $50,000 +18%
Pawn Shop $44,000 - $172,000 $50,000 - $200,000 -14%
Personal Training $13,000 - $97,000 $10,000 - $100,000 Avg
Pest Control $17,000 - $81,000 $10,000 - $75,000 +15%
Pet Boarding Facility $53,000 - $486,000 $50,000 - $500,000 -2%
Pet Sitting Business $3,000 - $10,000 $500 - $5,000 +136%
Pet Store $55,000 - $282,000 $60,000 - $300,000 -6%
Pharmacy $288,000 - $1,513,000 $250,000 - $1,700,000 -8%
Phone Repair Shop $10,000 - $51,000 $10,000 - $50,000 +2%
Photography Business $13,000 - $81,000 $10,000 - $50,000 +57%
Physical Therapy Clinic $44,000 - $254,000 $50,000 - $300,000 -15%
Pilates Studio $27,000 - $131,000 $30,000 - $150,000 -12%
Pizza Shop $73,000 - $286,000 $75,000 - $300,000 -4%
Plumbing $17,000 - $92,000 $15,000 - $100,000 -5%
Podcast Studio $18,000 - $88,000 $15,000 - $80,000 +12%
Pool Construction Business $44,000 - $254,000 $50,000 - $300,000 -15%
Pool Cleaning & Service $6,000 - $31,000 $5,000 - $25,000 +23%
Preschool $73,000 - $287,000 $80,000 - $300,000 -5%
Pressure Washing Business $3,000 - $24,000 $3,000 - $20,000 +17%
Print-on-Demand Business $3,000 - $16,000 $500 - $8,000 +124%
Printing Business $49,000 - $241,000 $50,000 - $250,000 -3%
Property Management Company $7,000 - $38,000 $5,000 - $50,000 -18%
Real Estate Agency $30,000 - $124,000 $25,000 - $100,000 +23%
Real Estate Investment Business $29,000 - $571,000 $20,000 - $500,000 +15%
Recording Studio $44,000 - $206,000 $50,000 - $200,000 Avg
Restaurant $85,000 - $335,000 $75,000 - $250,000 +29%
Retail Store $42,000 - $239,000 $50,000 - $250,000 -6%
Roofing $27,000 - $142,000 $20,000 - $150,000 -1%
SaaS Company $25,000 - $203,000 $25,000 - $200,000 +1%
Security Company $16,000 - $107,000 $10,000 - $100,000 +12%
Self-Storage Facility $423,000 - $5,204,000 $500,000 - $5,000,000 +2%
Senior Care Facility $116,000 - $1,207,000 $100,000 - $1,500,000 -17%
SEO Agency $10,000 - $64,000 $5,000 - $50,000 +35%
Sign Shop $18,000 - $91,000 $20,000 - $100,000 -9%
Smoke Shop $27,000 - $131,000 $30,000 - $150,000 -12%
Solar Installation Business $44,000 - $254,000 $50,000 - $300,000 -15%
Spa $86,000 - $330,000 $100,000 - $350,000 -8%
Staffing Agency $37,000 - $163,000 $30,000 - $150,000 +11%
Subscription Box Business $7,000 - $59,000 $5,000 - $50,000 +20%
Swim School $44,000 - $254,000 $50,000 - $300,000 -15%
Tanning Salon $44,000 - $213,000 $50,000 - $250,000 -14%
Tattoo Shop $27,000 - $131,000 $30,000 - $150,000 -12%
Tax Preparation Business $10,000 - $52,000 $8,000 - $40,000 +29%
Tech Startup $21,000 - $168,000 $20,000 - $150,000 +11%
Thrift Store $21,000 - $117,000 $20,000 - $120,000 -1%
Tire Shop $57,000 - $274,000 $50,000 - $250,000 +10%
Tour Company $14,000 - $88,000 $10,000 - $80,000 +13%
Towing Company $56,000 - $290,000 $50,000 - $300,000 -1%
Trampoline Park $385,000 - $1,787,000 $500,000 - $2,000,000 -13%
Travel Agency $8,000 - $44,000 $5,000 - $30,000 +49%
Tree Service $14,000 - $91,000 $15,000 - $100,000 -9%
Trucking Company $22,000 - $292,000 $15,000 - $400,000 -24%
Tutoring Business $4,000 - $21,000 $2,000 - $15,000 +47%
Used Car Dealer $49,000 - $338,000 $50,000 - $350,000 -3%
Vape Shop $30,000 - $140,000 $25,000 - $150,000 -3%
Vending Machine Business $8,000 - $73,000 $5,000 - $50,000 +47%
Veterinary Clinic $309,000 - $1,933,000 $300,000 - $2,000,000 -3%
Videography Business $14,000 - $67,000 $10,000 - $60,000 +16%
Virtual Assistant Business $2,000 - $13,000 $500 - $3,000 +329%
Waste Management Business $36,000 - $432,000 $30,000 - $500,000 -12%
Web Design Business $5,000 - $31,000 $3,000 - $25,000 +29%
Wedding Planning Business $8,000 - $37,000 $5,000 - $30,000 +29%
Welding Business $21,000 - $121,000 $15,000 - $100,000 +23%
Window Cleaning Business $3,000 - $21,000 $2,000 - $15,000 +41%
Winery $79,000 - $1,011,000 $100,000 - $1,000,000 -1%
Yoga Studio $46,000 - $182,000 $50,000 - $200,000 -9%
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Local Market Factors in Phoenix

103.4%

Cost of Living Index

$18-$45

Commercial Rent ($/sqft/yr)

1x

Labor Rate Index

8.6%

Sales Tax Rate

Local Permit Fees in Phoenix

PermitCost Range
Business License $50 - $200
Food Service Permit $200 - $500
Liquor License $1,500 - $5,000
General Contractor License $200 - $600
Home Occupation Permit $25 - $100

About Starting a Business in Phoenix

Phoenix is one of the fastest-growing major cities in the U.S., with a business-friendly regulatory environment and low corporate taxes. The metro area has become a magnet for tech companies, logistics operations, and semiconductor manufacturing.

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