Best States for Sheet Metal Contractor, HVAC (Commercial)s 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 sheet metal contractor, hvac (commercial)s.

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

Top 5 Best States

1
Colorado
No license neededMedian: $27.82/hrLLC: $50No services tax
Score

98

2
Missouri
No license neededMedian: $31.90/hrLLC: $50No services tax
Score

98

3
Montana
No license neededMedian: $29.78/hrLLC: $35No services tax
Score

98

4
Indiana
No license neededMedian: $28.65/hrLLC: $100No services tax
Score

94

5
New Hampshire
No license neededMedian: $25.66/hrLLC: $100No services tax
Score

94

Full Ranking: All 51 States

#StateLicenseFeeMedian WageLLC CostScore
1ColoradoNo$27.82/hr$5098
2MissouriNo$31.90/hr$5098
3MontanaNo$29.78/hr$3598
4IndianaNo$28.65/hr$10094
5New HampshireNo$25.66/hr$10094
6IllinoisNo$44.99/hr$15090
7KansasNo$24.48/hr$16590
8MaineNo$29.00/hr$17590
9MinnesotaNo$30.07/hr$15590
10New YorkNo$35.32/hr$20090
11PennsylvaniaNo$33.29/hr$12590
12South DakotaNo$23.94/hr$15090
13VermontNo$27.35/hr$12590
14WyomingNo$24.64/hr$10290
15District of ColumbiaYes$45$36.76/hr$9979
16MichiganYes$200$29.65/hr$5078
17North DakotaYes$100$37.94/hr$13575
18GeorgiaYes$297$25.94/hr$10074
19MarylandYes$155$29.63/hr$10074
20OhioYes$210$30.26/hr$9974
21West VirginiaYes$295$34.52/hr$10074
22IowaYes$433$29.62/hr$5073
23KentuckyYes$405$23.61/hr$4073
24DelawareYes$153$30.70/hr$11070
25NebraskaYes$28.15/hr$11070
26North CarolinaYes$280$25.18/hr$12570
27WashingtonYes$117$44.82/hr$20070
28WisconsinYes$175$36.53/hr$13070
29IdahoYes$355$31.58/hr$10069
30LouisianaYes$400$26.38/hr$10069
31OregonYes$310$31.34/hr$10069
32UtahYes$405$29.08/hr$5469
33ArizonaYes$696$24.73/hr$5068
34MississippiYes$640$23.57/hr$5068
35New MexicoYes$536$28.47/hr$5068
36AlabamaYes$340$22.16/hr$20065
37FloridaYes$364$23.64/hr$12565
38South CarolinaYes$310$22.15/hr$11065
39TexasYes$209$26.84/hr$30065
40CaliforniaYes$579$38.28/hr$7064
41HawaiiYes$694$44.01/hr$5164
42OklahomaYes$615$30.97/hr$10064
43VirginiaYes$720$28.12/hr$10064
44ArkansasYes$535$20.50/hr$5063
45AlaskaYes$850$39.79/hr$25060
46MassachusettsYes$400$38.10/hr$50060
47New JerseyYes$331$45.34/hr$12560
48Rhode IslandYes$510$27.38/hr$15060
49TennesseeYes$364$25.81/hr$30060
50ConnecticutYes$705$29.98/hr$12055
51NevadaYes$1040$22.88/hr$42555

5 Most Challenging States

Nevada
Fee: $1040$22.88/hr55
Connecticut
Fee: $705$29.98/hr55
Tennessee
Fee: $364$25.81/hr60
Rhode Island
Fee: $510$27.38/hr60
New Jersey
Fee: $331$45.34/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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