Best States for Packers 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 packers.
44 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 | Colorado | No | — | $18.75/hr | $50 | 98 |
| 2 | Indiana | No | — | $18.58/hr | $100 | 94 |
| 3 | Arizona | No | — | $17.97/hr | $50 | 91 |
| 4 | Iowa | No | — | $17.14/hr | $50 | 91 |
| 5 | Michigan | No | — | $17.28/hr | $50 | 91 |
| 6 | Mississippi | No | — | $15.26/hr | $50 | 91 |
| 7 | Missouri | No | — | $17.72/hr | $50 | 91 |
| 8 | Montana | No | — | $16.37/hr | $35 | 91 |
| 9 | Alaska | No | — | $19.40/hr | $250 | 90 |
| 10 | Nebraska | No | — | $18.24/hr | $110 | 90 |
| 11 | Vermont | No | — | $18.63/hr | $125 | 90 |
| 12 | District of Columbia | No | — | $19.33/hr | $99 | 89 |
| 13 | California | No | — | $17.57/hr | $70 | 87 |
| 14 | Georgia | No | — | $15.70/hr | $100 | 87 |
| 15 | Hawaii | No | — | $16.42/hr | $51 | 87 |
| 16 | Idaho | No | — | $17.43/hr | $100 | 87 |
| 17 | New Hampshire | No | — | $15.30/hr | $100 | 87 |
| 18 | Ohio | No | — | $17.79/hr | $99 | 87 |
| 19 | Oregon | No | — | $17.06/hr | $100 | 87 |
| 20 | Utah | No | — | $17.03/hr | $54 | 87 |
| 21 | Virginia | No | — | $17.11/hr | $100 | 87 |
| 22 | West Virginia | No | — | $15.92/hr | $100 | 87 |
| 23 | Arkansas | No | — | $15.74/hr | $50 | 86 |
| 24 | Nevada | No | — | $18.52/hr | $425 | 85 |
| 25 | New Jersey | No | — | $20.56/hr | $125 | 85 |
| 26 | Delaware | No | — | $16.94/hr | $110 | 83 |
| 27 | Illinois | No | — | $17.44/hr | $150 | 83 |
| 28 | Kansas | No | — | $17.15/hr | $165 | 83 |
| 29 | New York | No | — | $17.38/hr | $200 | 83 |
| 30 | North Carolina | No | — | $16.06/hr | $125 | 83 |
| 31 | Pennsylvania | No | — | $17.63/hr | $125 | 83 |
| 32 | Rhode Island | No | — | $16.14/hr | $150 | 83 |
| 33 | Wisconsin | No | — | $17.70/hr | $130 | 83 |
| 34 | Kentucky | Yes | $20 | $17.67/hr | $40 | 81 |
| 35 | Maine | Yes | $50 | $18.10/hr | $175 | 80 |
| 36 | Minnesota | Yes | $40 | $18.54/hr | $155 | 80 |
| 37 | Louisiana | No | — | $13.41/hr | $100 | 79 |
| 38 | Connecticut | No | — | $17.13/hr | $120 | 78 |
| 39 | Massachusetts | No | — | $16.40/hr | $500 | 78 |
| 40 | Tennessee | No | — | $16.50/hr | $300 | 78 |
| 41 | Texas | No | — | $15.00/hr | $300 | 78 |
| 42 | Washington | No | — | $17.47/hr | $200 | 78 |
| 43 | Maryland | Yes | $30 | $16.88/hr | $100 | 77 |
| 44 | Oklahoma | Yes | $35 | $15.68/hr | $100 | 77 |
| 45 | Alabama | No | — | $13.31/hr | $200 | 75 |
| 46 | North Dakota | No | — | $13.69/hr | $135 | 75 |
| 47 | South Carolina | No | — | $14.82/hr | $110 | 75 |
| 48 | South Dakota | No | — | $14.30/hr | $150 | 75 |
| 49 | Wyoming | No | — | $13.60/hr | $102 | 75 |
| 50 | New Mexico | Yes | $25 | $14.31/hr | $50 | 73 |
| 51 | Florida | Yes | $100 | $13.22/hr | $125 | 60 |
▼ 5 Most Challenging States
Florida
Fee: $100$13.22/hr60
New Mexico
Fee: $25$14.31/hr73
Wyoming
$13.60/hr75
South Dakota
$14.30/hr75
South Carolina
$14.82/hr75
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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