Best States for Painting 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 painting contractor (residential)s.

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

Top 5 Best States

1
Colorado
No license neededMedian: $24.35/hrLLC: $50No services tax
Score

98

2
Kentucky
No license neededMedian: $21.94/hrLLC: $40No services tax
Score

98

3
Michigan
No license neededMedian: $23.73/hrLLC: $50No services tax
Score

98

4
Missouri
No license neededMedian: $24.11/hrLLC: $50No services tax
Score

98

5
Montana
No license neededMedian: $23.52/hrLLC: $35No services tax
Score

98

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ColoradoNo$24.35/hr$5098
2KentuckyNo$21.94/hr$4098
3MichiganNo$23.73/hr$5098
4MissouriNo$24.11/hr$5098
5MontanaNo$23.52/hr$3598
6New MexicoNo$22.07/hr$5098
7GeorgiaNo$22.93/hr$10094
8IndianaNo$24.05/hr$10094
9New HampshireNo$23.85/hr$10094
10OhioNo$25.79/hr$9994
11OklahomaNo$21.93/hr$10094
12DelawareNo$26.81/hr$11090
13FloridaNo$22.14/hr$12590
14IllinoisNo$29.99/hr$15090
15KansasNo$21.58/hr$16590
16MaineNo$27.06/hr$17590
17MinnesotaNo$29.28/hr$15590
18New YorkNo$26.93/hr$20090
19North CarolinaNo$21.10/hr$12590
20South DakotaNo$22.40/hr$15090
21VermontNo$23.78/hr$12590
22WisconsinNo$24.05/hr$13090
23WyomingNo$22.03/hr$10290
24IowaYes$50$23.45/hr$5088
25TexasNo$21.23/hr$30085
26IdahoYes$50$22.35/hr$10084
27ArkansasYes$50$18.47/hr$5083
28PennsylvaniaYes$50$24.15/hr$12580
29South CarolinaYes$50$20.65/hr$11080
30West VirginiaYes$141$20.89/hr$10079
31MississippiYes$290$19.59/hr$5078
32North DakotaYes$100$27.59/hr$13575
33LouisianaYes$255$21.01/hr$10074
34NebraskaYes$21.64/hr$11070
35New JerseyYes$110$28.99/hr$12570
36Rhode IslandYes$200$24.72/hr$15070
37WashingtonYes$117$28.13/hr$20070
38MarylandYes$433$23.59/hr$10069
39OregonYes$310$23.50/hr$10069
40UtahYes$405$22.07/hr$5469
41VirginiaYes$320$21.48/hr$10069
42ArizonaYes$596$22.74/hr$5068
43AlabamaYes$350$21.97/hr$20065
44AlaskaYes$350$31.54/hr$25065
45ConnecticutYes$220$25.78/hr$12065
46MassachusettsYes$250$26.86/hr$50065
47CaliforniaYes$579$27.62/hr$7064
48District of ColumbiaYes$442$28.76/hr$9964
49HawaiiYes$694$32.51/hr$5164
50TennesseeYes$307$19.57/hr$30060
51NevadaYes$1040$25.15/hr$42555

5 Most Challenging States

Nevada
Fee: $1040$25.15/hr55
Tennessee
Fee: $307$19.57/hr60
Hawaii
Fee: $694$32.51/hr64
District of Columbia
Fee: $442$28.76/hr64
California
Fee: $579$27.62/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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