Best States for Paving 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 paving contractor (residential)s.

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

Top 5 Best States

1
Colorado
No license neededMedian: $25.69/hrLLC: $50No services tax
Score

98

2
Kentucky
No license neededMedian: $21.95/hrLLC: $40No services tax
Score

98

3
Michigan
No license neededMedian: $26.29/hrLLC: $50No services tax
Score

98

4
Missouri
No license neededMedian: $33.91/hrLLC: $50No services tax
Score

98

5
Montana
No license neededMedian: $28.36/hrLLC: $35No services tax
Score

98

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ColoradoNo$25.69/hr$5098
2KentuckyNo$21.95/hr$4098
3MichiganNo$26.29/hr$5098
4MissouriNo$33.91/hr$5098
5MontanaNo$28.36/hr$3598
6GeorgiaNo$21.44/hr$10094
7IndianaNo$27.39/hr$10094
8New HampshireNo$29.30/hr$10094
9OhioNo$29.46/hr$9994
10OklahomaNo$22.71/hr$10094
11DelawareNo$23.08/hr$11090
12FloridaNo$21.55/hr$12590
13IllinoisNo$31.79/hr$15090
14KansasNo$25.74/hr$16590
15MaineNo$26.13/hr$17590
16MinnesotaNo$33.14/hr$15590
17New YorkNo$30.70/hr$20090
18South DakotaNo$27.70/hr$15090
19VermontNo$25.76/hr$12590
20WisconsinNo$38.19/hr$13090
21WyomingNo$28.33/hr$10290
22IowaYes$50$28.96/hr$5088
23MassachusettsNo$29.06/hr$50085
24TexasNo$22.51/hr$30085
25IdahoYes$50$23.21/hr$10084
26ArkansasYes$50$19.64/hr$5083
27PennsylvaniaYes$50$27.21/hr$12580
28South CarolinaYes$50$21.77/hr$11080
29West VirginiaYes$141$27.47/hr$10079
30MississippiYes$290$18.51/hr$5078
31LouisianaYes$255$21.50/hr$10074
32ArizonaYes$416$29.06/hr$5073
33New MexicoYes$323$22.03/hr$5073
34NebraskaYes$23.51/hr$11070
35New JerseyYes$110$23.11/hr$12570
36North CarolinaYes$154$22.89/hr$12570
37Rhode IslandYes$200$29.54/hr$15070
38WashingtonYes$117$37.11/hr$20070
39MarylandYes$433$28.23/hr$10069
40OregonYes$310$29.35/hr$10069
41UtahYes$405$23.02/hr$5469
42VirginiaYes$320$22.53/hr$10069
43AlabamaYes$350$18.75/hr$20065
44AlaskaYes$350$46.96/hr$25065
45ConnecticutYes$220$28.71/hr$12065
46CaliforniaYes$579$38.20/hr$7064
47District of ColumbiaYes$442$33.67/hr$9964
48HawaiiYes$694$52.20/hr$5164
49North DakotaYes$100$13560
50TennesseeYes$307$23.41/hr$30060
51NevadaYes$1040$29.17/hr$42555

5 Most Challenging States

Nevada
Fee: $1040$29.17/hr55
Tennessee
Fee: $307$23.41/hr60
North Dakota
Fee: $10060
Hawaii
Fee: $694$52.20/hr64
District of Columbia
Fee: $442$33.67/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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