Best States for Security Alarm Installers 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 security alarm installers.

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

Top 5 Best States

1
Colorado
No license neededMedian: $29.69/hrLLC: $50No services tax
Score

98

2
Kentucky
No license neededMedian: $26.94/hrLLC: $40No services tax
Score

98

3
Missouri
No license neededMedian: $27.49/hrLLC: $50No services tax
Score

98

4
Indiana
No license neededMedian: $23.84/hrLLC: $100No services tax
Score

94

5
New Hampshire
No license neededMedian: $25.31/hrLLC: $100No services tax
Score

94

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ColoradoNo$29.69/hr$5098
2KentuckyNo$26.94/hr$4098
3MissouriNo$27.49/hr$5098
4IndianaNo$23.84/hr$10094
5New HampshireNo$25.31/hr$10094
6OhioNo$29.34/hr$9994
7KansasNo$27.51/hr$16590
8NebraskaNo$28.55/hr$11090
9North DakotaNo$28.48/hr$13590
10PennsylvaniaNo$28.48/hr$12590
11South DakotaNo$24.80/hr$15090
12VermontNo$35.35/hr$12590
13WisconsinNo$29.46/hr$13090
14NevadaNo$28.59/hr$42585
15MarylandYes$113$31.40/hr$10079
16GeorgiaYes$237$24.06/hr$10074
17West VirginiaYes$276$23.81/hr$10074
18ArizonaYes$410$25.72/hr$5073
19MontanaYes$475$28.21/hr$3573
20DelawareYes$195$29.24/hr$11070
21MaineYes$256$29.76/hr$17570
22New YorkYes$288$31.87/hr$20070
23North CarolinaYes$185$27.61/hr$12570
24WyomingYes$255$20.36/hr$10270
25IdahoYes$390$24.24/hr$10069
26OregonYes$425$37.54/hr$10069
27IowaYes$915$29.74/hr$5068
28MichiganYes$628$25.97/hr$5068
29MississippiYes$1290$22.11/hr$5068
30New MexicoYes$502$21.84/hr$5068
31AlabamaYes$323$28.68/hr$20065
32AlaskaYes$350$30.04/hr$25065
33IllinoisYes$316$30.07/hr$15065
34MinnesotaYes$316$37.11/hr$15565
35New JerseyYes$271$30.24/hr$12565
36CaliforniaYes$579$31.74/hr$7064
37HawaiiYes$694$29.19/hr$5164
38LouisianaYes$1574$22.17/hr$10064
39OklahomaYes$510$23.50/hr$10064
40UtahYes$653$28.30/hr$5464
41VirginiaYes$700$28.94/hr$10064
42ArkansasYes$1165$22.74/hr$5063
43ConnecticutYes$435$30.97/hr$12060
44FloridaYes$695$28.64/hr$12560
45Rhode IslandYes$505$34.81/hr$15060
46South CarolinaYes$744$22.68/hr$11060
47TexasYes$478$23.74/hr$30060
48TennesseeYes$978$22.79/hr$30055
49WashingtonYes$699$31.05/hr$20055
50District of ColumbiaYes$266$9954
51MassachusettsYes$630$50040

5 Most Challenging States

Massachusetts
Fee: $63040
Washington
Fee: $699$31.05/hr55
Tennessee
Fee: $978$22.79/hr55
Texas
Fee: $478$23.74/hr60

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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