How Much Does It Cost to Start a Business in Alaska?
Last updated: March 2026
Alaska Business Overview
LLC Filing Fee
$250
Sales Tax Rate
0.0%
Minimum Wage
$11.73/hr
Cost of Living Index
127.1
Workers Comp
Required
Annual Report Fee
$100
Starting a Business in Alaska
Alaska requires a business license from the Division of Corporations at $50 for two years. Many industries have additional professional licensing requirements.
Alaska has no state income tax and no state sales tax. Local municipalities may impose their own sales taxes up to 7.5%.
Alaska's remote geography significantly increases shipping and supply costs. Businesses must account for higher logistics expenses and limited local market size.
For official formation documents, visit the Alaska Secretary of State.
Startup Costs for 100 Business Types in Alaska
The table below shows estimated startup costs for every major business type, adjusted for Alaska’s cost of living index of 127.1. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $8,890 | $25,400 | $58,420 |
| Airbnb / Vacation Rental | Real Estate | $13,970 | $38,100 | $114,300 |
| Ambulance Service | Transportation & Logistics | $101,600 | $254,000 | $635,000 |
| App Development Company | Tech & Online | $12,700 | $38,100 | $101,600 |
| Architecture Firm | Professional Services | $25,400 | $69,850 | $165,100 |
| Auto Detailing Business | Automotive | $6,350 | $38,100 | $127,000 |
| Auto Repair Shop | Automotive | $95,250 | $254,000 | $635,000 |
| Bakery | Food & Beverage | $25,400 | $120,650 | $381,000 |
| Bar & Nightclub | Food & Beverage | $127,000 | $444,500 | $1,079,500 |
| Barbershop | Beauty & Personal Care | $19,050 | $82,550 | $222,250 |
| Beauty Supply Store | Beauty & Personal Care | $38,100 | $127,000 | $381,000 |
| Bookstore | Retail | $31,750 | $127,000 | $381,000 |
| Brewery / Microbrewery | Food & Beverage | $127,000 | $508,000 | $1,270,000 |
| Cannabis Dispensary | Specialty & Regulated | $158,115 | $421,640 | $1,581,150 |
| Car Wash | Automotive | $158,115 | $690,880 | $1,973,580 |
| Carpentry & Woodworking Shop | Construction & Trades | $13,335 | $35,560 | $88,900 |
| Catering Business | Food & Beverage | $15,240 | $67,310 | $165,100 |
| Chiropractic Office | Health & Wellness | $50,800 | $152,400 | $381,000 |
| Cleaning Business | Home Services | $1,905 | $13,970 | $46,990 |
| Clothing Boutique | Retail | $38,100 | $127,000 | $381,000 |
| Coffee Shop | Food & Beverage | $31,750 | $152,400 | $444,500 |
| Concrete Business | Construction & Trades | $31,750 | $82,550 | $190,500 |
| Consulting Business | Professional Services | $2,540 | $11,430 | $33,020 |
| Convenience Store | Retail | $63,500 | $355,600 | $952,500 |
| Courier & Delivery Service | Transportation & Logistics | $10,160 | $27,940 | $69,850 |
| Cybersecurity Firm | Tech & Online | $25,400 | $69,850 | $190,500 |
| Dance Studio | Childcare & Education | $25,400 | $101,600 | $317,500 |
| Daycare Center | Childcare & Education | $76,200 | $228,600 | $635,000 |
| Demolition Company | Construction & Trades | $38,100 | $101,600 | $254,000 |
| Dental Practice | Health & Wellness | $317,500 | $635,000 | $1,270,000 |
| Digital Marketing Agency | Tech & Online | $5,080 | $15,240 | $40,640 |
| E-Commerce Store | Tech & Online | $6,350 | $19,050 | $63,500 |
| Electrical Business | Home Services | $19,050 | $69,850 | $203,200 |
| Esthetics & Skincare Business | Beauty & Personal Care | $10,160 | $50,800 | $152,400 |
| Excavation Company | Construction & Trades | $63,500 | $165,100 | $444,500 |
| Financial Planning Practice | Professional Services | $25,400 | $69,850 | $165,100 |
| Flower Shop | Retail | $25,400 | $95,250 | $254,000 |
| Food Delivery Service | Food & Beverage | $12,700 | $66,040 | $165,100 |
| Food Processing Business | Food & Beverage | $95,250 | $317,500 | $952,500 |
| Food Truck | Food & Beverage | $57,150 | $152,400 | $254,000 |
| Freight Brokerage | Transportation & Logistics | $20,320 | $45,720 | $101,600 |
| Furniture Store | Retail | $63,500 | $254,000 | $762,000 |
| General Contracting Business | Construction & Trades | $25,400 | $69,850 | $165,100 |
| Ghost Kitchen | Food & Beverage | $25,400 | $76,200 | $190,500 |
| Gift Shop | Retail | $25,400 | $88,900 | $254,000 |
| Gym & Fitness Center | Health & Wellness | $63,500 | $317,500 | $1,270,000 |
| Hair Salon | Beauty & Personal Care | $19,050 | $95,250 | $317,500 |
| Handyman Business | Home Services | $2,540 | $12,700 | $41,910 |
| Home Health Care Agency | Health & Wellness | $50,800 | $165,100 | $381,000 |
| HVAC Business | Home Services | $25,400 | $88,900 | $254,000 |
| Ice Cream Shop | Food & Beverage | $25,400 | $95,250 | $254,000 |
| Insurance Agency | Professional Services | $19,050 | $50,800 | $114,300 |
| IT Services Business | Tech & Online | $19,050 | $50,800 | $127,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $31,750 | $114,300 | $317,500 |
| Landscaping Business | Home Services | $12,700 | $50,800 | $152,400 |
| Laundromat | Real Estate | $127,000 | $317,500 | $762,000 |
| Law Firm | Professional Services | $15,240 | $43,180 | $102,870 |
| Limousine & Car Service | Transportation & Logistics | $50,800 | $114,300 | $279,400 |
| Liquor Store | Retail | $63,500 | $228,600 | $635,000 |
| Marketing Agency | Professional Services | $6,350 | $22,860 | $63,500 |
| Martial Arts Studio | Childcare & Education | $25,400 | $88,900 | $254,000 |
| Meal Prep Business | Food & Beverage | $25,400 | $82,550 | $254,000 |
| Med Spa | Health & Wellness | $127,000 | $444,500 | $1,270,000 |
| Medical Practice | Health & Wellness | $190,500 | $508,000 | $1,270,000 |
| Mental Health Practice | Health & Wellness | $19,050 | $63,500 | $190,500 |
| Moving Company | Home Services | $38,100 | $127,000 | $381,000 |
| Music School | Childcare & Education | $12,700 | $63,500 | $190,500 |
| Nail Salon | Beauty & Personal Care | $25,400 | $114,300 | $317,500 |
| Painting Business | Home Services | $6,350 | $31,750 | $101,600 |
| Personal Training Business | Health & Wellness | $6,350 | $31,750 | $127,000 |
| Pest Control Business | Home Services | $12,700 | $50,800 | $152,400 |
| Pet Store | Retail | $38,100 | $127,000 | $381,000 |
| Pharmacy | Health & Wellness | $190,500 | $508,000 | $1,270,000 |
| Physical Therapy Clinic | Health & Wellness | $76,200 | $228,600 | $571,500 |
| Pizza Shop | Food & Beverage | $63,500 | $222,250 | $508,000 |
| Plumbing Business | Home Services | $19,050 | $63,500 | $190,500 |
| Podcast Production Company | Tech & Online | $2,540 | $7,620 | $22,860 |
| Preschool | Childcare & Education | $63,500 | $190,500 | $508,000 |
| Property Management Company | Real Estate | $13,335 | $30,480 | $69,850 |
| Real Estate Agency | Professional Services | $12,700 | $35,560 | $88,900 |
| Real Estate Investing (Rental) | Real Estate | $31,750 | $95,250 | $317,500 |
| Restaurant | Food & Beverage | $222,250 | $476,250 | $952,500 |
| Roofing Company | Home Services | $19,050 | $76,200 | $228,600 |
| SaaS Company | Tech & Online | $25,400 | $76,200 | $254,000 |
| Spa & Massage Therapy | Health & Wellness | $12,700 | $88,900 | $317,500 |
| Staffing Agency | Professional Services | $25,400 | $69,850 | $190,500 |
| Storage Unit Facility | Real Estate | $254,000 | $762,000 | $2,540,000 |
| Tattoo Shop | Beauty & Personal Care | $25,400 | $74,930 | $254,000 |
| Tax Preparation Business | Professional Services | $4,445 | $12,700 | $34,290 |
| Thrift Store | Retail | $25,400 | $95,250 | $254,000 |
| Tire Shop | Automotive | $63,500 | $190,500 | $508,000 |
| Towing Company | Automotive | $63,500 | $190,500 | $508,000 |
| Trucking Company | Transportation & Logistics | $38,100 | $101,600 | $254,000 |
| Tutoring Business | Childcare & Education | $2,540 | $30,480 | $127,000 |
| Used Car Dealership | Automotive | $63,500 | $254,000 | $762,000 |
| Vape Shop | Retail | $31,750 | $95,250 | $254,000 |
| Web Development Agency | Tech & Online | $4,445 | $15,240 | $41,910 |
| Welding Business | Construction & Trades | $19,050 | $50,800 | $127,000 |
| Winery | Food & Beverage | $190,500 | $967,740 | $3,810,000 |
| Yoga Studio | Health & Wellness | $19,050 | $101,600 | $254,000 |
Most Popular Business Types in Alaska
Licenses & Permits in Alaska
General Business License
Alaska requires a Business License from the Division of Corporations, Business, and Professional Licensing at a cost of $50 for a two-year license. This statewide license is required for most business activities. Many industries have additional professional licensing requirements beyond the general business license.
Industry-Specific Licenses
- Food Establishment Permit — Alaska Department of Environmental Conservation — Division of Environmental HealthCost: $200-$1,000 • Renewal: Annual
- Contractor Registration — Alaska Department of Commerce, Community, and Economic DevelopmentCost: $250-$500 • Renewal: Biennial
- Commercial Operator Permit — Alaska Department of Natural ResourcesCost: $100-$2,000 • Renewal: Annual
- Commercial Fishing License — Alaska Department of Fish and GameCost: $60-$600 • Renewal: Annual
- Cosmetology Establishment License — Alaska Board of Barbers and HairdressersCost: $100-$300 • Renewal: Biennial
- Child Care Facility License — Alaska Department of Health — Child Care ProgramCost: $100-$400 • Renewal: Annual
- Liquor License — Alaska Alcoholic Beverage Control BoardCost: $500-$5,000 • Renewal: Biennial
- Motor Carrier Permit — Alaska Department of Transportation and Public FacilitiesCost: $100-$500 • Renewal: Annual
Home-Based Business Rules
Home-based businesses in Alaska are regulated by municipal ordinances where they exist and are generally permitted with limitations on exterior signage, employee visits, and storage of commercial equipment. Anchorage allows home occupations as an accessory use in residential zones with a home occupation permit. Remote areas outside municipal boundaries have minimal restrictions on home-based businesses.
Alaska Business Resources
SBA District Office
Alaska SBA District Office — Anchorage
Secretary of State
https://www.commerce.alaska.gov/web/cbpl/BusinessLicensing.aspxZoning Information
Zoning is limited outside of incorporated areas. Anchorage and Fairbanks have formal zoning codes; much of Alaska is unzoned state or federal land.
Health Department Notes
Food businesses must obtain a Food Establishment Permit from the Division of Environmental Health. Remote locations face additional inspection logistics costs.
Workers Compensation
Required for all employers with employees. Alaska has some of the highest workers comp rates in the nation due to the hazardous nature of many industries.