Best States for Landscape 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 landscape contractor (residential)s.

3 states don't require a license · National median: N/A · Updated 2025

Top 5 Best States

1
Rhode Island
No license neededMedian: $21.45/hrLLC: $150No services tax
Score

90

2
Michigan
License: $35Median: $18.22/hrLLC: $50No services tax
Score

88

3
Massachusetts
No license neededMedian: $22.62/hrLLC: $500No services tax
Score

85

4
New Hampshire
License: $25Median: $21.42/hrLLC: $100No services tax
Score

84

5
Iowa
License: $75Median: $18.01/hrLLC: $50No services tax
Score

83

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1Rhode IslandNo$21.45/hr$15090
2MichiganYes$35$18.22/hr$5088
3MassachusettsNo$22.62/hr$50085
4New HampshireYes$25$21.42/hr$10084
5IowaYes$75$18.01/hr$5083
6South CarolinaNo$17.37/hr$11083
7KentuckyYes$40$17.19/hr$4081
8MissouriYes$50$17.97/hr$5081
9IllinoisYes$50$20.73/hr$15080
10MaineYes$25$21.86/hr$17580
11PennsylvaniaYes$40$18.16/hr$12580
12VermontYes$30$19.83/hr$12580
13WisconsinYes$30$18.90/hr$13080
14IdahoYes$150$18.55/hr$10079
15ColoradoYes$170$21.61/hr$5078
16MontanaYes$175$19.01/hr$3578
17IndianaYes$50$17.78/hr$10077
18OklahomaYes$38$16.79/hr$10077
19New MexicoYes$75$17.18/hr$5076
20KansasYes$85$18.17/hr$16575
21NebraskaYes$97$18.22/hr$11075
22New YorkYes$100$21.49/hr$20075
23North DakotaYes$150$19.00/hr$13575
24FloridaYes$35$17.32/hr$12573
25WyomingYes$25$17.88/hr$10273
26GeorgiaYes$75$17.71/hr$10072
27OhioYes$125$17.90/hr$9972
28MinnesotaYes$225$22.47/hr$15570
29UtahYes$445$18.72/hr$5469
30VirginiaYes$320$18.07/hr$10069
31ArizonaYes$596$18.23/hr$5068
32South DakotaYes$70$15.11/hr$15068
33LouisianaYes$214$15.64/hr$10067
34ArkansasYes$200$16.56/hr$5066
35AlaskaYes$350$22.36/hr$25065
36ConnecticutYes$21.59/hr$12065
37New JerseyYes$185$19.42/hr$12565
38WashingtonYes$180$22.21/hr$20065
39CaliforniaYes$579$21.32/hr$7064
40District of ColumbiaYes$442$22.75/hr$9964
41HawaiiYes$694$21.54/hr$5164
42MarylandYes$533$18.30/hr$10064
43OregonYes$1065$20.76/hr$10064
44DelawareYes$17.81/hr$11063
45MississippiYes$14.83/hr$5063
46North CarolinaYes$285$17.74/hr$12563
47TexasYes$75$17.42/hr$30063
48West VirginiaYes$201$14.57/hr$10059
49AlabamaYes$325$16.91/hr$20058
50NevadaYes$1215$18.09/hr$42555
51TennesseeYes$307$17.84/hr$30053

5 Most Challenging States

Tennessee
Fee: $307$17.84/hr53
Nevada
Fee: $1215$18.09/hr55
Alabama
Fee: $325$16.91/hr58
West Virginia
Fee: $201$14.57/hr59
Texas
Fee: $75$17.42/hr63

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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