Best States for Cosmetologists 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 cosmetologists.
0 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 | Iowa | Yes | $118 | $18.20/hr | $50 | 83 |
| 2 | California | Yes | $125 | $18.93/hr | $70 | 79 |
| 3 | Hawaii | Yes | $92 | $25.00/hr | $51 | 79 |
| 4 | Colorado | Yes | $177 | $21.00/hr | $50 | 78 |
| 5 | Montana | Yes | $269 | $18.38/hr | $35 | 78 |
| 6 | Maine | Yes | $150 | $23.31/hr | $175 | 75 |
| 7 | Nebraska | Yes | $78 | $18.84/hr | $110 | 75 |
| 8 | South Dakota | Yes | $100 | $23.58/hr | $150 | 75 |
| 9 | New Hampshire | Yes | $218 | $20.19/hr | $100 | 74 |
| 10 | Virginia | Yes | $277 | $18.20/hr | $100 | 74 |
| 11 | Idaho | Yes | $109 | $16.26/hr | $100 | 72 |
| 12 | Indiana | Yes | $88 | $15.14/hr | $100 | 72 |
| 13 | Maryland | Yes | $104 | $17.52/hr | $100 | 72 |
| 14 | Oregon | Yes | $90 | $17.19/hr | $100 | 72 |
| 15 | Arizona | Yes | $247 | $16.93/hr | $50 | 71 |
| 16 | Kentucky | Yes | $200 | $15.47/hr | $40 | 71 |
| 17 | Michigan | Yes | $200 | $17.17/hr | $50 | 71 |
| 18 | Minnesota | Yes | $280 | $20.60/hr | $155 | 70 |
| 19 | District of Columbia | Yes | $175 | $23.10/hr | $99 | 69 |
| 20 | Missouri | Yes | $138 | $14.61/hr | $50 | 68 |
| 21 | New York | Yes | $70 | $16.33/hr | $200 | 68 |
| 22 | North Dakota | Yes | $145 | $16.29/hr | $135 | 68 |
| 23 | Wyoming | Yes | $148 | $15.58/hr | $102 | 68 |
| 24 | Utah | Yes | $234 | $16.81/hr | $54 | 67 |
| 25 | Alaska | Yes | $450 | $21.49/hr | $250 | 65 |
| 26 | Massachusetts | Yes | $218 | $22.95/hr | $500 | 65 |
| 27 | New Jersey | Yes | $179 | $21.21/hr | $125 | 65 |
| 28 | Vermont | Yes | $375 | $23.87/hr | $125 | 65 |
| 29 | Georgia | Yes | $139 | $14.81/hr | $100 | 64 |
| 30 | Ohio | Yes | $76 | $14.15/hr | $99 | 64 |
| 31 | Oklahoma | Yes | $60 | $14.75/hr | $100 | 64 |
| 32 | Arkansas | Yes | $125 | $12.72/hr | $50 | 63 |
| 33 | Connecticut | Yes | $100 | $17.82/hr | $120 | 63 |
| 34 | Illinois | Yes | $230 | $16.73/hr | $150 | 63 |
| 35 | Kansas | Yes | $210 | $16.70/hr | $165 | 63 |
| 36 | Mississippi | Yes | $245 | $13.63/hr | $50 | 63 |
| 37 | New Mexico | Yes | $263 | $13.54/hr | $50 | 63 |
| 38 | North Carolina | Yes | $222 | $17.37/hr | $125 | 63 |
| 39 | Florida | Yes | $63 | $14.31/hr | $125 | 60 |
| 40 | Pennsylvania | Yes | $104 | $14.27/hr | $125 | 60 |
| 41 | Rhode Island | Yes | $100 | $14.67/hr | $150 | 60 |
| 42 | South Carolina | Yes | $100 | $14.00/hr | $110 | 60 |
| 43 | Washington | Yes | $319 | $28.33/hr | $200 | 60 |
| 44 | West Virginia | Yes | $186 | $14.97/hr | $100 | 59 |
| 45 | Wisconsin | Yes | $391 | $17.57/hr | $130 | 58 |
| 46 | Louisiana | Yes | $75 | $11.29/hr | $100 | 56 |
| 47 | Alabama | Yes | $255 | $14.26/hr | $200 | 55 |
| 48 | Delaware | Yes | $225 | $14.90/hr | $110 | 55 |
| 49 | Nevada | Yes | $195 | $14.27/hr | $425 | 50 |
| 50 | Tennessee | Yes | $200 | $14.03/hr | $300 | 50 |
| 51 | Texas | Yes | $172 | $13.64/hr | $300 | 50 |
▼ 5 Most Challenging States
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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