Best States for Carpenter/Cabinet Maker Contractor (Residential)s to Start a Home Business
We ranked all 51 states based on licensing requirements, earning potential, LLC costs, and tax burden. Here are the best (and worst) states for carpenter/cabinet maker contractor (residential)s.
21 states don't require a license · National median: N/A · Updated 2025
▲ Top 5 Best States
Full Ranking: All 51 States
| # | State | License | Fee | Median Wage | LLC Cost | Score |
|---|---|---|---|---|---|---|
| 1 | Colorado | No | — | $28.60/hr | $50 | 98 |
| 2 | Kentucky | No | — | $24.45/hr | $40 | 98 |
| 3 | Missouri | No | — | $29.40/hr | $50 | 98 |
| 4 | Montana | No | — | $27.94/hr | $35 | 98 |
| 5 | New Mexico | No | — | $25.00/hr | $50 | 98 |
| 6 | Georgia | No | — | $24.29/hr | $100 | 94 |
| 7 | Indiana | No | — | $29.09/hr | $100 | 94 |
| 8 | New Hampshire | No | — | $28.79/hr | $100 | 94 |
| 9 | Ohio | No | — | $28.04/hr | $99 | 94 |
| 10 | Oklahoma | No | — | $22.95/hr | $100 | 94 |
| 11 | Delaware | No | — | $29.38/hr | $110 | 90 |
| 12 | Illinois | No | — | $36.73/hr | $150 | 90 |
| 13 | Kansas | No | — | $24.79/hr | $165 | 90 |
| 14 | Maine | No | — | $28.46/hr | $175 | 90 |
| 15 | Minnesota | No | — | $31.08/hr | $155 | 90 |
| 16 | New York | No | — | $30.61/hr | $200 | 90 |
| 17 | South Dakota | No | — | $22.36/hr | $150 | 90 |
| 18 | Vermont | No | — | $29.91/hr | $125 | 90 |
| 19 | Wisconsin | No | — | $29.04/hr | $130 | 90 |
| 20 | Wyoming | No | — | $26.86/hr | $102 | 90 |
| 21 | Iowa | Yes | $50 | $26.00/hr | $50 | 88 |
| 22 | Texas | No | — | $23.15/hr | $300 | 85 |
| 23 | Idaho | Yes | $50 | $23.33/hr | $100 | 84 |
| 24 | Arkansas | Yes | $50 | $22.27/hr | $50 | 83 |
| 25 | Pennsylvania | Yes | $50 | $28.48/hr | $125 | 80 |
| 26 | South Carolina | Yes | $50 | $23.51/hr | $110 | 80 |
| 27 | West Virginia | Yes | $141 | $22.75/hr | $100 | 79 |
| 28 | Michigan | Yes | $294 | $29.52/hr | $50 | 78 |
| 29 | Mississippi | Yes | $290 | $22.19/hr | $50 | 78 |
| 30 | North Dakota | Yes | $100 | $28.07/hr | $135 | 75 |
| 31 | Louisiana | Yes | $255 | $23.88/hr | $100 | 74 |
| 32 | Nebraska | Yes | — | $23.84/hr | $110 | 70 |
| 33 | New Jersey | Yes | $110 | $29.75/hr | $125 | 70 |
| 34 | North Carolina | Yes | $154 | $22.90/hr | $125 | 70 |
| 35 | Rhode Island | Yes | $200 | $29.09/hr | $150 | 70 |
| 36 | Washington | Yes | $117 | $35.22/hr | $200 | 70 |
| 37 | Maryland | Yes | $433 | $28.91/hr | $100 | 69 |
| 38 | Oregon | Yes | $310 | $29.41/hr | $100 | 69 |
| 39 | Utah | Yes | $405 | $24.86/hr | $54 | 69 |
| 40 | Virginia | Yes | $320 | $24.15/hr | $100 | 69 |
| 41 | Arizona | Yes | $596 | $26.22/hr | $50 | 68 |
| 42 | Alabama | Yes | $448 | $23.02/hr | $200 | 65 |
| 43 | Alaska | Yes | $350 | $31.32/hr | $250 | 65 |
| 44 | Connecticut | Yes | $220 | $30.53/hr | $120 | 65 |
| 45 | Florida | Yes | $364 | $23.12/hr | $125 | 65 |
| 46 | California | Yes | $579 | $35.97/hr | $70 | 64 |
| 47 | District of Columbia | Yes | $442 | $31.78/hr | $99 | 64 |
| 48 | Hawaii | Yes | $694 | $41.33/hr | $51 | 64 |
| 49 | Tennessee | Yes | $307 | $23.81/hr | $300 | 60 |
| 50 | Massachusetts | Yes | $500 | $34.19/hr | $500 | 55 |
| 51 | Nevada | Yes | $1040 | $29.92/hr | $425 | 55 |
▼ 5 Most Challenging States
Nevada
Fee: $1040$29.92/hr55
Massachusetts
Fee: $500$34.19/hr55
Tennessee
Fee: $307$23.81/hr60
Hawaii
Fee: $694$41.33/hr64
District of Columbia
Fee: $442$31.78/hr64
How We Scored Each State
Each state starts with a base score of 50, then we add or subtract points based on:
- No license required: +20 points (biggest single factor — lower barriers to entry)
- License fee: −10 for fees over $500, −5 for over $300, +10 for under $50
- Wages above national median: Up to +15 points for states paying 20%+ above national median
- LLC formation cost: +8 for states under $50, −5 for states over $300
- No sales tax on services: +5 points
Data sources: Institute for Justice License to Work 3 (licensing), BLS OEWS May 2024 (wages), state Secretary of State offices (LLC costs). This ranking reflects factors relevant to home-based operators — commercial location costs, local zoning, and cost of living are not included.
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