Best States for Iron/Steel 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 iron/steel 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 | — | $29.43/hr | $50 | 98 |
| 2 | Kentucky | No | — | $31.35/hr | $40 | 98 |
| 3 | Missouri | No | — | $38.62/hr | $50 | 98 |
| 4 | Georgia | No | — | $28.55/hr | $100 | 94 |
| 5 | Indiana | No | — | $30.28/hr | $100 | 94 |
| 6 | Ohio | No | — | $35.36/hr | $99 | 94 |
| 7 | Oklahoma | No | — | $24.48/hr | $100 | 94 |
| 8 | Illinois | No | — | $49.17/hr | $150 | 90 |
| 9 | Kansas | No | — | $26.32/hr | $165 | 90 |
| 10 | Minnesota | No | — | $43.80/hr | $155 | 90 |
| 11 | New York | No | — | $39.24/hr | $200 | 90 |
| 12 | Wisconsin | No | — | $38.95/hr | $130 | 90 |
| 13 | Wyoming | No | — | $22.12/hr | $102 | 90 |
| 14 | Texas | No | — | $23.63/hr | $300 | 85 |
| 15 | Arkansas | Yes | $50 | $28.76/hr | $50 | 83 |
| 16 | Michigan | No | — | — | $50 | 83 |
| 17 | Montana | No | — | — | $35 | 83 |
| 18 | New Hampshire | No | — | — | $100 | 79 |
| 19 | Delaware | No | — | — | $110 | 75 |
| 20 | Maine | No | — | — | $175 | 75 |
| 21 | South Dakota | No | — | — | $150 | 75 |
| 22 | Vermont | No | — | — | $125 | 75 |
| 23 | Louisiana | Yes | $255 | $32.80/hr | $100 | 74 |
| 24 | West Virginia | Yes | $194 | $38.09/hr | $100 | 74 |
| 25 | Arizona | Yes | $466 | $32.22/hr | $50 | 73 |
| 26 | Iowa | Yes | $50 | — | $50 | 73 |
| 27 | New Mexico | Yes | $323 | $24.40/hr | $50 | 73 |
| 28 | Mississippi | Yes | $290 | $17.76/hr | $50 | 71 |
| 29 | Nebraska | Yes | — | $34.30/hr | $110 | 70 |
| 30 | New Jersey | Yes | $110 | $37.39/hr | $125 | 70 |
| 31 | North Carolina | Yes | $154 | $24.76/hr | $125 | 70 |
| 32 | South Carolina | Yes | $270 | $22.62/hr | $110 | 70 |
| 33 | Washington | Yes | $117 | $51.12/hr | $200 | 70 |
| 34 | Idaho | Yes | $50 | — | $100 | 69 |
| 35 | Maryland | Yes | $433 | $29.11/hr | $100 | 69 |
| 36 | Oregon | Yes | $310 | $43.82/hr | $100 | 69 |
| 37 | Utah | Yes | $405 | $24.04/hr | $54 | 69 |
| 38 | Virginia | Yes | $320 | $28.24/hr | $100 | 69 |
| 39 | Alabama | Yes | $448 | $27.18/hr | $200 | 65 |
| 40 | Florida | Yes | $364 | $21.53/hr | $125 | 65 |
| 41 | Pennsylvania | Yes | $50 | — | $125 | 65 |
| 42 | California | Yes | $579 | $29.54/hr | $70 | 64 |
| 43 | North Dakota | Yes | $100 | — | $135 | 60 |
| 44 | Tennessee | Yes | $307 | $36.98/hr | $300 | 60 |
| 45 | Nevada | Yes | $1040 | $48.13/hr | $425 | 55 |
| 46 | Rhode Island | Yes | $200 | — | $150 | 55 |
| 47 | Alaska | Yes | $350 | — | $250 | 50 |
| 48 | Connecticut | Yes | $220 | — | $120 | 50 |
| 49 | District of Columbia | Yes | $442 | — | $99 | 49 |
| 50 | Hawaii | Yes | $694 | — | $51 | 49 |
| 51 | Massachusetts | Yes | $500 | — | $500 | 40 |
▼ 5 Most Challenging States
Massachusetts
Fee: $50040
Hawaii
Fee: $69449
District of Columbia
Fee: $44249
Connecticut
Fee: $22050
Alaska
Fee: $35050
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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