One of the first questions new handymen ask is whether they need a license. The honest answer is that it depends on your state, your city and the size of the job. The good news is that most small repair work is allowed without a contractor license almost everywhere, as long as you understand the limits.
Business license vs contractor license
These are two different things. A general business license or registration from your city or county is needed for almost any business, handyman or not. A contractor license is a trade license from your state that is required for larger construction and remodeling work. Most handymen need the first one and stay under the limits for the second.
Dollar limits
Many states let unlicensed handymen do jobs below a certain value, including labor and materials. These limits vary widely, from a few hundred dollars in some states to several thousand in others, and a few states have no general limit at all. Splitting one big job into several small invoices to stay under the limit is usually not allowed.
Work that almost always needs a license
- Electrical work beyond very minor tasks, such as running new circuits or replacing a panel
- Plumbing beyond simple repairs like faucets and toilet parts
- Gas lines and gas appliances
- HVAC installation and refrigerant work
- Structural work, roofing and anything that needs a building permit in many areas
Even swapping a light fixture or a faucet can be restricted in some places. When in doubt, refer the job to a licensed trade and build a referral relationship. Licensed electricians and plumbers often send small jobs back your way.
Jobs that are usually fine
- Drywall patching and painting
- Furniture and shelf assembly
- TV and picture mounting
- Door and cabinet adjustments, hardware swaps
- Caulking, weatherstripping and minor carpentry
- Fence and deck repairs
- Gutter cleaning and minor exterior repairs
Insurance matters either way
Licensed or not, general liability insurance protects you if you damage a customer’s home or someone gets hurt. Many customers and property managers will ask for proof of insurance before hiring you, and it lets you charge more than someone working without it.
How to check your state’s rules
Search for your state’s contractor licensing board and look for “handyman exemption” or “minor work exemption”. Then check your city or county for business license and permit rules. Write down your state’s limit and keep it on your quote template so you never quote a job you cannot legally do.
Get a state licensing guide with the starter kit
Our handyman starter kit includes a guide to licensing limits in your state, a job request form with photo upload, and quote and invoice templates. See our guide to handyman rates, then vote for the handyman kit. Voters get 20% off at launch.
This is general information, not legal advice. Licensing rules change and vary by state and city, so confirm with your local licensing board.
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