Best States for Earth Driller, Water Wells 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 earth driller, water wells.
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 | Michigan | Yes | $40 | — | $50 | 73 |
| 2 | Missouri | Yes | $110 | — | $50 | 68 |
| 3 | Illinois | Yes | $50 | — | $150 | 65 |
| 4 | Indiana | Yes | $125 | — | $100 | 64 |
| 5 | Colorado | Yes | $230 | — | $50 | 63 |
| 6 | Iowa | Yes | $225 | — | $50 | 63 |
| 7 | New Mexico | Yes | $200 | — | $50 | 63 |
| 8 | Florida | Yes | $150 | — | $125 | 60 |
| 9 | Kansas | Yes | $145 | — | $165 | 60 |
| 10 | Pennsylvania | Yes | $88 | — | $125 | 60 |
| 11 | Wisconsin | Yes | $100 | — | $130 | 60 |
| 12 | Idaho | Yes | $275 | — | $100 | 59 |
| 13 | New Hampshire | Yes | $185 | — | $100 | 59 |
| 14 | Ohio | Yes | $250 | — | $99 | 59 |
| 15 | Oregon | Yes | $170 | — | $100 | 59 |
| 16 | Kentucky | Yes | $480 | — | $40 | 58 |
| 17 | Montana | Yes | $375 | — | $35 | 58 |
| 18 | Alabama | Yes | $275 | — | $200 | 55 |
| 19 | Delaware | Yes | $180 | — | $110 | 55 |
| 20 | Maine | Yes | $268 | — | $175 | 55 |
| 21 | Nebraska | Yes | — | — | $110 | 55 |
| 22 | New York | Yes | $160 | — | $200 | 55 |
| 23 | North Carolina | Yes | $250 | — | $125 | 55 |
| 24 | South Dakota | Yes | $200 | — | $150 | 55 |
| 25 | Utah | Yes | $350 | — | $54 | 54 |
| 26 | Virginia | Yes | $460 | — | $100 | 54 |
| 27 | Arizona | Yes | $871 | — | $50 | 53 |
| 28 | Mississippi | Yes | $620 | — | $50 | 53 |
| 29 | Alaska | Yes | $350 | — | $250 | 50 |
| 30 | Minnesota | Yes | $325 | — | $155 | 50 |
| 31 | North Dakota | Yes | $300 | — | $135 | 50 |
| 32 | Rhode Island | Yes | $380 | — | $150 | 50 |
| 33 | South Carolina | Yes | $417 | — | $110 | 50 |
| 34 | Texas | Yes | $267 | — | $300 | 50 |
| 35 | Vermont | Yes | $315 | — | $125 | 50 |
| 36 | Washington | Yes | $267 | — | $200 | 50 |
| 37 | Wyoming | Yes | $450 | — | $102 | 50 |
| 38 | California | Yes | $579 | — | $70 | 49 |
| 39 | Georgia | Yes | $525 | — | $100 | 49 |
| 40 | Hawaii | Yes | $694 | — | $51 | 49 |
| 41 | Louisiana | Yes | $510 | — | $100 | 49 |
| 42 | Maryland | Yes | $525 | — | $100 | 49 |
| 43 | Oklahoma | Yes | $550 | — | $100 | 49 |
| 44 | West Virginia | Yes | $566 | — | $100 | 49 |
| 45 | Arkansas | Yes | $750 | — | $50 | 48 |
| 46 | Connecticut | Yes | $433 | — | $120 | 45 |
| 47 | Massachusetts | Yes | $325 | — | $500 | 45 |
| 48 | District of Columbia | Yes | $654 | — | $99 | 44 |
| 49 | Nevada | Yes | $1140 | — | $425 | 40 |
| 50 | New Jersey | Yes | $725 | — | $125 | 40 |
| 51 | Tennessee | Yes | $557 | — | $300 | 40 |
▼ 5 Most Challenging States
Tennessee
Fee: $55740
New Jersey
Fee: $72540
Nevada
Fee: $114040
District of Columbia
Fee: $65444
Massachusetts
Fee: $32545
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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