Handyman Licenses in Montana – Everything you Need to Know

Understanding regulations is essential if you want to offer professional handyman services in Montana. Knowing what you can and can’t do will keep you safe from the law and confidently turning a profit.

I’ve poured over pages of difficult-to-understand legal jargon, spoken to state inspectors, and compiled the most critical information. And here’s what I’ve found.

Do you need a license to offer handyman services in Montana?

Yes. But the state doesn’t call it a license. In Montana, handymen need an Independent Contractor Exemption Certificate (ICEC) to perform home repair work legally. There’s no level of work that handymen can take on in the state without procuring this certificate.

As the name suggests, the certificate is designed for independent contractors who are exempt from the Workers’ Compensation mandate since they don’t have employees.

If you plan to have others working under you, you’ll need Montana’s Construction Contractor certification, and Worker’s Comp requirements will apply.

How do I apply for an Independent Contractor Exemption Certificate?

Montana law keeps the process simple and affordable.

There are no education or training prerequisites, and no exam requirements.

Handymen apply through Montana’s Department of Labor and Industry. The application for the ICEC has four steps:

1. Complete the form.
2. Sign the waiver and have it notarized.
3. Gather the business documentation noted.
4. Mail completed application to the address on the form, along with the $125 fee.

The fee can be paid online or enclosed with the application.

Montana sends certificate-holders a renewal application every two years. The cost is the same as for new applicants–$125.

For handymen who want to have employees working under them, they’ll need to apply for their Construction Contractor Certification rather than the ICEC.

Limitations for Handymen

Montana is a state that allows some electrical and plumbing work to be performed by handymen. I wasn’t able to locate information on permissible work in the HVAC field without an HVAC license.

Low-voltage electrical work (90 volts or less) is available to handymen, including the installation and repair of telecom, cable TV, computer networks, AV equipment, and security systems.

As for plumbing, handymen can make minor repairs to faucets, valves, pipes, and appliances, as well as clear drains and replace toilet flappers, without a speciality license.

I was fortunate to connect with Montana’s Executive Officer of the Plumbing and Electrical Boards, who summed it up quite nicely: “If the work needs a permit, you need a license. If you’re installing equipment, moving outlets, adding new connections, or working “inside the walls,” you need a license. Swapping out light fixtures or replacing faulty toilets is okay.”

The officer also stressed that different municipalities can have their own regulations, so it’s worth checking with the city clerk in the area you plan to work before embarking on your new venture.

Advertising Restrictions

Like in most states, handymen in Montana need to be careful not to “oversell” themselves in their ads, on their websites, or on proposals and invoices. To avoid a run-in with the law, avoid terms like “General Contractor” and language that can mislead consumers as to your true certification.

Once you obtain your ICEC, be sure to include your certification number on business communications. It’ll help establish credibility with prospective customers and avoid misconceptions from enforcers.

Insurance Requirements

Handymen in Montana aren’t required to have liability insurance. While they’re not obligated to carry coverage, it’s a wise choice. Just one serious claim can bankrupt your business and personal finances. Insurance is low-cost if you get it here.

Handymen without employees won’t need Workers’ Compensation either, as the Independent Contractor Exemption Certification name implies.

If handymen opt to obtain their Construction Contractor certification (and have employees), they WILL need to carry Workers’ Compensation insurance.

Penalties for Contracting Illegally

Handymen working on projects without their ICEC put themselves at risk. Fines start at $1,000 and reach $5,000 for repeat offenders. Violators can also have their ICEC suspended or revoked.

Penalties also apply to handymen who transfer their credentials to someone else. The ICEC certification applies only to the person named on the certificate.

Be smart—work within the parameters Montana has laid out for handymen, and tread the gray areas carefully. The penalties aren’t worth it.

Anything else you need to know to start a Handyman Business in Montana?

While a DBA registration (“Doing Business As”) isn’t required to perform handyman work in Montana, the process is so easy and the fee so modest ($20), most handymen opt to take this step. This simple act allows them to assign themselves a moniker to help their business stand out.

For example, if your name is Bob Jones and you want your business to be called “Bob Jones Handyman Services,” you’ll need to apply. If you plan to limit your business name to your legal name (i.e., “Bob Jones”), you can skip the DBA registration process.

DBA filing can be done online through the Secretary of State’s office.

Conclusion

Montana is a great place to start a handyman business.

Handymen in the state are fortunate that no education, training, or exam is required to provide services. Once handymen obtain their ICEC, a wide range of profit-turning projects are available to them.

Montana is also a state that allows handymen to perform light plumbing and electrical work, tasks that are often prohibited in other states.

And importantly, Montana doesn’t cap the price of jobs handymen can tackle, increasing the potential for greater earning power.

Do you offer handyman services in Montana?

If so, I’d love to hear about your experience. Please leave a comment below to share any insights I may have missed.