Best States for Locksmiths 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 locksmiths.

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

Top 5 Best States

1
Arizona
No license neededMedian: $20.83/hrLLC: $50No services tax
Score

98

2
Colorado
No license neededMedian: $22.59/hrLLC: $50No services tax
Score

98

3
Iowa
No license neededMedian: $21.63/hrLLC: $50No services tax
Score

98

4
Kentucky
No license neededMedian: $21.56/hrLLC: $40No services tax
Score

98

5
Michigan
No license neededMedian: $28.16/hrLLC: $50No services tax
Score

98

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ArizonaNo$20.83/hr$5098
2ColoradoNo$22.59/hr$5098
3IowaNo$21.63/hr$5098
4KentuckyNo$21.56/hr$4098
5MichiganNo$28.16/hr$5098
6MississippiNo$21.64/hr$5098
7MissouriNo$22.83/hr$5098
8MontanaNo$22.96/hr$3598
9New MexicoNo$21.73/hr$5098
10GeorgiaNo$29.62/hr$10094
11IdahoNo$22.26/hr$10094
12IndianaNo$23.71/hr$10094
13MarylandNo$28.51/hr$10094
14New HampshireNo$26.48/hr$10094
15OhioNo$21.13/hr$9994
16UtahNo$22.93/hr$5494
17West VirginiaNo$22.42/hr$10094
18AlaskaNo$28.51/hr$25090
19DelawareNo$24.29/hr$11090
20FloridaNo$22.89/hr$12590
21KansasNo$24.00/hr$16590
22MaineNo$23.40/hr$17590
23MinnesotaNo$29.53/hr$15590
24NebraskaNo$22.82/hr$11090
25New YorkNo$28.63/hr$20090
26North DakotaNo$23.15/hr$13590
27PennsylvaniaNo$25.84/hr$12590
28Rhode IslandNo$35.15/hr$15090
29South CarolinaNo$22.09/hr$11090
30WisconsinNo$22.94/hr$13090
31District of ColumbiaNo$35.81/hr$9989
32ArkansasNo$17.76/hr$5086
33MassachusettsNo$30.13/hr$50085
34TennesseeNo$21.69/hr$30085
35WashingtonNo$24.29/hr$20085
36CaliforniaYes$104$29.57/hr$7079
37HawaiiNo$5179
38OklahomaYes$109$21.72/hr$10079
39VirginiaYes$75$27.88/hr$10079
40South DakotaNo$15075
41VermontNo$12575
42WyomingNo$10275
43LouisianaYes$264$19.42/hr$10074
44OregonYes$180$23.93/hr$10074
45AlabamaYes$213$21.22/hr$20070
46NevadaYes$66$26.12/hr$42570
47TexasYes$58$21.49/hr$30070
48ConnecticutYes$293$30.99/hr$12065
49North CarolinaYes$438$20.28/hr$12565
50IllinoisYes$550$22.77/hr$15060
51New JerseyYes$348$28.51/hr$12560

5 Most Challenging States

New Jersey
Fee: $348$28.51/hr60
Illinois
Fee: $550$22.77/hr60
North Carolina
Fee: $438$20.28/hr65
Connecticut
Fee: $293$30.99/hr65
Texas
Fee: $58$21.49/hr70

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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