Best States for Preschool Teacher, Public Schools 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 preschool teacher, public schools.
1 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 | Utah | No | — | $16.45/hr | $54 | 87 |
| 2 | California | Yes | $149 | $22.06/hr | $70 | 79 |
| 3 | Montana | Yes | $66 | $17.11/hr | $35 | 76 |
| 4 | Georgia | Yes | $281 | $20.35/hr | $100 | 74 |
| 5 | Hawaii | Yes | $256 | $21.53/hr | $51 | 74 |
| 6 | Colorado | Yes | $349 | $21.10/hr | $50 | 73 |
| 7 | Missouri | Yes | $195 | $16.89/hr | $50 | 71 |
| 8 | Oklahoma | Yes | $340 | $18.26/hr | $100 | 69 |
| 9 | New Mexico | Yes | $944 | $18.22/hr | $50 | 68 |
| 10 | Arizona | Yes | $431 | $16.94/hr | $50 | 66 |
| 11 | Kansas | Yes | $456 | $20.77/hr | $165 | 65 |
| 12 | Minnesota | Yes | $392 | $18.58/hr | $155 | 65 |
| 13 | Nebraska | Yes | $361 | $24.17/hr | $110 | 65 |
| 14 | Vermont | Yes | $368 | $21.52/hr | $125 | 65 |
| 15 | District of Columbia | Yes | $409 | $21.68/hr | $99 | 64 |
| 16 | Maryland | Yes | $517 | $18.54/hr | $100 | 64 |
| 17 | New Hampshire | Yes | $566 | $18.03/hr | $100 | 64 |
| 18 | Oregon | Yes | $812 | $18.92/hr | $100 | 64 |
| 19 | Delaware | Yes | $156 | $15.09/hr | $110 | 63 |
| 20 | Indiana | Yes | $441 | $16.98/hr | $100 | 62 |
| 21 | Louisiana | Yes | $486 | $17.50/hr | $100 | 62 |
| 22 | Ohio | Yes | $305 | $15.75/hr | $99 | 62 |
| 23 | Michigan | Yes | $549 | $17.66/hr | $50 | 61 |
| 24 | Alaska | Yes | $740 | $18.18/hr | $250 | 60 |
| 25 | Massachusetts | Yes | $376 | $21.65/hr | $500 | 60 |
| 26 | New York | Yes | $743 | $21.91/hr | $200 | 60 |
| 27 | North Dakota | Yes | $720 | $21.15/hr | $135 | 60 |
| 28 | Washington | Yes | $410 | $20.84/hr | $200 | 60 |
| 29 | Kentucky | Yes | $403 | $14.41/hr | $40 | 58 |
| 30 | Maine | Yes | $421 | $17.82/hr | $175 | 58 |
| 31 | Mississippi | Yes | $367 | $12.80/hr | $50 | 58 |
| 32 | South Dakota | Yes | $346 | $16.03/hr | $150 | 58 |
| 33 | Virginia | Yes | $595 | $17.94/hr | $100 | 57 |
| 34 | Connecticut | Yes | $1010 | $20.75/hr | $120 | 55 |
| 35 | New Jersey | Yes | $752 | $22.39/hr | $125 | 55 |
| 36 | Idaho | Yes | $363 | $13.62/hr | $100 | 54 |
| 37 | West Virginia | Yes | $423 | $14.23/hr | $100 | 54 |
| 38 | Arkansas | Yes | $429 | $14.45/hr | $50 | 53 |
| 39 | Florida | Yes | $505 | $16.48/hr | $125 | 53 |
| 40 | Illinois | Yes | $685 | $17.90/hr | $150 | 53 |
| 41 | Iowa | Yes | $507 | $14.32/hr | $50 | 53 |
| 42 | Pennsylvania | Yes | $699 | $16.47/hr | $125 | 53 |
| 43 | Rhode Island | Yes | $586 | $17.33/hr | $150 | 53 |
| 44 | South Carolina | Yes | $594 | $15.99/hr | $110 | 53 |
| 45 | Texas | Yes | $377 | $16.28/hr | $300 | 53 |
| 46 | Wisconsin | Yes | $575 | $16.80/hr | $130 | 53 |
| 47 | Wyoming | Yes | $355 | $14.06/hr | $102 | 50 |
| 48 | Nevada | Yes | $642 | $17.29/hr | $425 | 48 |
| 49 | Tennessee | Yes | $827 | $17.30/hr | $300 | 48 |
| 50 | Alabama | Yes | $664 | $13.28/hr | $200 | 45 |
| 51 | North Carolina | Yes | $580 | $14.90/hr | $125 | 45 |
▼ 5 Most Challenging States
North Carolina
Fee: $580$14.90/hr45
Alabama
Fee: $664$13.28/hr45
Tennessee
Fee: $827$17.30/hr48
Nevada
Fee: $642$17.29/hr48
Wyoming
Fee: $355$14.06/hr50
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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