Unfortunately, we handymen can’t just go out, buy a few tools, and start building houses. That’s illegal without a contractor’s license, and for a good reason.
Without these laws in place, the quality of our homes would be seriously compromised. People with no business in construction would be scamming and endangering homeowners (more than they already do). Despite my issues with the contractor’s board, I understand that law enforcers are a necessary evil.
However, many home services can still be offered without a contractor’s license.
In fact, I’ve run a very profitable handyman business without one. For me, getting licensed in a trade just doesn’t make sense, at least not yet.
But the real question is should you get a contractor’s license? Many of my readers have asked me this same question, and the answers I give might surprise you. Read on to learn what you should consider before studying and applying for a contractor’s license.
Disclaimer: Construction law varies significantly in every country and state. Make sure to check your local regulations to help you make and informed decision.
Benefits of getting a contractors license
Obtaining a contractor’s license can make your business more profitable by offering a few benefits.
#1 – A boost in credibility – Credibility can help to build trust with your customers. It’s important to note that there are other, arguably easier, ways to gain credibility, but any way you can position yourself as a pro rather than cheap labor is beneficial. However, I wouldn’t expect that getting a contractor’s license will bring you a significant amount of new business. You still need to do some good marketing.
#2 – Ability to tackle larger projects – Having a license allows you to tackle larger and potentially more profitable jobs. Assuming you bid jobs appropriately, can sell your services, and then work efficiently, large projects such as kitchen and bath remodels can be more profitable than small repairs for several reasons.
#3 – Ability to tackle certain higher-paying projects – Speciality services like plumbing, electrical, HVAC, mold remediation, and many other projects can only be provided by contractors. That means there are usually fewer qualified people able to do these services, which allows you to demand a higher rate. As an unlicensed handyman, you are offering services that anyone can do, so in many cases, there is more competition.
#4 – Ability to hire subcontractors – Let’s say you were overly busy and needed to hire some help but didn’t want to bring on a permanent employee. You may consider subbing out jobs to other pros. That means you still get a chunk of the profits from each job you sell, but you don’t have to perform the labor. Having a contractor’s license allows you to do this legally. You can also hire subcontractors to help you complete parts of a project you are hired for.
While these benefits make getting a license seem like a no-brainer, here are some other things to consider before deciding.
How much contracting experience do you have?
If you are like me when I first started, meaning you have no experience bidding jobs, then a contractor’s license is probably the wrong choice.
For example, if you have never quoted a job, what are the chances that you are going to quote it accurately?
Close to zero.
And you’ll probably quote too low, which means you’ll lose money.
Trust me on this one. I’ve bid too low on way too many jobs. In fact, I lost over 50 grand in my first year to underbidding small jobs. If I had to learn my lesson on $10,000 jobs, I’d be out of business begging for food on the streets.
Regardless of how skilled at home repairs and improvements you may be, there are several business skills you must develop before quoting big jobs. And these business skills are arguably more important than your handy skills when it comes to making money.
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What services do you plan on providing?
Before getting a license, make sure you will still be able to offer all of the services you are planning to offer.
In many states, like Nevada, where I live, getting a contractor’s license can limit the services you can legally provide. For example, without a license, I can do just about anything as long as it’s under $1,000 and doesn’t include plumbing, electrical, or HVAC. This leaves a lot open.
If I was to get a contractor’s license, I would technically be limited to only performing jobs within that license. Meaning if I got a carpenters license, I would no longer be able to legally offer painting, tile, drywall repair, and several other services that I occasionally provide for my customers unless I also go licensed as a general contractor or for each trade. Even a general contractor’s license would limit my services because be limited to projects that require at least three trades.
Since I like smaller jobs and quick repairs while doing a wide range of trades, a contractor’s license doesn’t make sense for my business model.
Are you sure you want to provide those services?
People often get licensed in a trade for the wrong reasons. Maybe because that is the trade they know how to do, or that is the trade they think they can make the most money. I recommend against this.
I’m a strong believer that you should enjoy what you do.
Without a lot of experience, it’s hard to even know the types of projects you enjoy. I didn’t know what types of jobs I liked doing until I had a couple of years of experience.
I’ve talked to many contractors that don’t like what they are doing. I even received an e-mail from a plumber saying that he hated plumbing! Too bad he put all that effort into getting a license.
So before getting a contractor’s license, you should be sure you like offering services related to that specific trade. Even though you may enjoy plumbing in your own home, this doesn’t mean you’ll like fixing other people’s toilets!
Here’s what I recommend
Before running out and getting a license immediately, get some experience offering several services first. Starting as a handyman is a great way to expose yourself to various projects while learning key business skills.
Not only will acquiring experience help you to choose a path you enjoy, but it will also help you uncover profitable services that you didn’t even think of.
Your handyman business experience will also teach you the business skills you need before risking your ass on huge jobs.
After a while, you’ll know what you enjoy, what is profitable, how to get customers, and how to run a business. At that point, you can graduate to the next level and go big with a contractor’s license.
Regardless of what you decide, make sure you understand your state laws by visiting your local contractor’s board website.
Now, listen to the podcast version of this article, which includes extra content. Listen right here or on your favorite podcast app!
HS030 – Should you get a contractor’s license?
You DON’T Need A Contractors License To Start a Profitable Handyman Business
There are dozens of services you can start offering right now to start generating a profit. Learn 10 of the most common with this…
FREE REPORT: 10 Profitable Handyman Services You Can offer WITHOUT a Contractors License
What do you think? Is a contractor’s license right for you?
Good points D. I was a estimator for a very large drywall and paint company here in the Tidewater area until the housing market collapsed a few years ago. There is a world of difference between estimating smaller handyman jobs than that of a licensed contractor. It takes years of practice, and a sound working knowledge of materials and blueprints. Most good handymen should never really need to get a contractors license because there are plenty of smaller scale jobs out there. I like to call them ” hit and run” jobs because I seldom have to make a return trip to finish up. They are much more fun as well. I was thinking of getting a Virginia Class B builders license, but I am having too much fun with the handyman jobs right now. I just bought a new Texas Bragg 14′ foot tandem axle trailer to cut the cost of truck and dumpster rentals. I paid cash for it from the money I made from doing a couple Fannie Mae trash-outs and sales cleans.
Hey John. Thanks for the comment. I totally agree, small jobs are way more fun. They are also less stressful!
Hello my name is Manuel dehoyos I am in the process of starting my own sub contracting LLC company. I already got my tax is # and I already register with the state of MN. I will start by working on Hog farms. But I also wanted to do handyman work or home conservation is a job I found online and there are in high demind for subcontractors but I do not know what type of permit or license I need in fact I’m not a plumber or electrician just a real good hard-working handyman. Every were I see and people I ask they say I need to get license. But I have read some were they it said as long as I don’t do plumbing or electrical or roofing I should be fine I think. I also getting $1000000 insurance coverage for my company. What do you think I need to do.
MN requires anyone performing more than 1 job (hang drywall and taping, and yes, those area classified as two separate things) and earning more than 15K a year on all projects is required to be licensed. If you’re a licensed general contractor you can basically do anything except specific trades like Plumbing and electrical on clients homes. On commercial buildings however, no license is required.
Do I need a Handyman Services license in South Carolina
hey guys dont know what to say besides couple years ago i started a handyman business didnt last long but i didnt really know how to go about starting it besides buying a cargo van and tools and business cards
Hey Nick,
I’m sure you learned a lot in the process that you can use this time around to succeed. Thanks for the comment and please don’t be shy. If you’ve got a question, me or somebody else would be glad to try to answer it.
Dan
Hey dan ive been reading some of your stuff good reading but i used to b a handyman back a few years ago but i maid quit a few mistakes im thinking really hard on starting it back up again i think I started out to big last time any suggestions on how to get started i mean i had plenty of clientele but couldnt get going
Hey guys thanks for the tips.. finished a 2 year HVAC/R program a couple weeks ago and I’ve already been in the trade for 6 months and would like to work on the side. Is there a $ amount I can’t pass if I were to do a repair/install with out a contractors or handyman license? (Im in southern California)
Hey Grigor,
I’m not from California, but I believe you need a handyman license to do any home repairs in your state. To find out for sure go to the California state contractor’s board website and it should have the info you need there.
In California, any job $500 and over that includes material and labor requires a state contractors license. If you are doing 2-3 separate jobs, at different times and the total is under $500 for each, no, UNLESS these jobs were discussed at the same time. It is illegal to split up work to skirt the law.
you can do any job as a handy man in CA. as long as the cost of parts and labor dont exceed 500.00
Hey me and my dad are trying to start a business my dad is a really good handy man he has been doin this job for over 40 years now im planing to get the license and put the business under my name my dad will work with me for a few years show me how to do all this stuff. Quick question is this a profitable business to get in to? I mean I really like this job. Oh and do I have to be 18 and older to get the license?
This is absolutely a profitable business to get into. As far as needing to be 18 I have no idea. You’ll have to check with the contractors board in Illinois and with you city to see if you can get a business license.
How do you advertise. I’m a licensed general contractor in California , have had my license since 2007. I stopped contracting when the market hit the fan. I love doing handyman work more than anything else and that’s all I want to do now. I used to just put a small ad in the newspaper buy now there are so many more options out there.
Chris,
Not as many people check the paper for help. They now use the internet. It’s all about creating an online presence (website, online directories, youtube, etc.) Other traditional methods like door flyers and radio can work, too. But online will give you more bang for your buck.
Would you be looking for a job?
My Brother is a handyman. A friend of his wants to get him in his development. Putting new dryer hoses in. Do you need any kind of licensed for that. I’m sure he needs lnsurance.We live in New Jersey.Thanks so much!
So, you don’t need a license to do jobs under $1,000 in Virginia? Does anyone have a link to the specifics? I just did a job for a guy. It was set up in three parts, each $1000. He won’t pay the last bill (including material $1,700). I want to sue him but don’t want to get in trouble for working without a license.
thanks
Jay,
Visit the contractor’s board website in Virginia and read up on the laws so you know for sure. And honestly, it’s probably best to seek an attorney’s advice at this point. Even if it is legal to do the work that you did whether or not you can successfully sue your customer is going to depend on several other factors.
Sue him. The court is not going to deal with whether or not you were licenced. They will deal with civil side of things, money owed. You didn’t work for free. Do not let this customer think that you did. I do hope you had a signed contract. That will save you in court.
I take before and after picture, keep all receipts etc.
You can’t sue him. You can do under $1000 in a 12 month period. You can’t do a $4700 contract and chop it all up into 4 different contracts. I have to disagree with everyone and get your license. It was the best thing I ever did. I’m now a Class B paint contractor and I started 6 years ago and was going door to door trying and doing whatever to get my name out there. Last year I did $325,000 in sales. You can’t do that without a license. You can do contracts under a $1000 over and over. If your sales or contracts exceed $1000 in 12 month period then your illegal no matter what your doing. You have to still have insurance at least general liability.
U won’t get into trouble because u are a day labor u can still sue if u got a written signed agreement then your good
I have been a Handyman for over 10 years in Tampa,Fl. had many jobs and all satisfied customers. I place ad’s on craigs list and other internet sites.
the other day I received a certified letter from the City of Tampa Police department, building Construction Investigation unit. Inside was a citation for $2150.00 stating that I advertise on craigslist construction trades and I do not have a license. however, my AD’s say Handyman Service and a list of things I do.( Repairs, Drywall, Painting, Carpentry, etc;) According to my County, a handyman’s license is not available nor required ! However, since I placed cretin key words in my ad, like “minor plumbing” “minor electrical” Carpentry, They consider that Construction trades and without a license, you can NOT solicit this type of work. I am going to fight this but, it is a lesson cause the law is always out to screw you! so be careful of the wording in your ad’s!!!
Yes, it’s very important to be careful what you advertise. I think craigslist and grocery store flyers are the most common ways for the investigators to catch unlicensed service providers.
It’s all about the money, i agrre that on big projects u should have a licence. A handy man cannot advertize plumbing,electrical, hvac. These areas require u to have a licence. Or someone that is licence, and u can use there licence doing business as etc etc. the system makes it hard for the small guy to get ahead.most costomers don’t want someone with so much credentials. Because they don,t want to pay too much money. I was once told thet i needed a contractors licence to patch some dry wall.
just reading up and came across your post .recently got citation for 3000 in saint lucie county .just looking for some feed back thanks
Hi i am just starting out i plan to do painting jobs. I never did estimates before but i did work for a painting company not to long ago and i liked it. Guess I just really want to ne my own boss and lead. I pland on starting with small jobs first then levitate to the bigger jobs eventually. Questuion is, ok i understand that its any job under 1000 but does that 1000 include supplies and paint or is it just for the actual work and you can charge for supplies and thing as well. Also wouls i still need my business license for this and if so would it still but technically under painting and construction or a handyman business
I have a question I just recently got a business liscense for paving and sealing driveways not a contractor liscense most jobs I do are small repair work and sealing of driveways under 1000k but I had a guy hire me to cut down a tree for 650$ then when I got done he wouldn’t pay me what he owed me then proceeded to call his law enforcement family that came down and redneck me acting like I was a scammer and called me a piece of shit in front of the whole neighborhood where I worked not only did this embarrass me but called out the integrity of who I am as a person what can I do to handle the situation and to keep myself protected from homeowners that want to scam people out of hard work and to protect me legally
No matter what you do there will be people like this in the world. Your best bet is to try to avoid them and do your best to continue offering a great service and communicating clearly with your customers. Don’t let one customer experience ruin your friendly nature and how you approach the business.
I collect 40% up front and have home owner buy materials. I also collect payments as the work is completed. Hope that helps.
In many states you do NOT need a contractor license to remove a tree ( to trim trees you might need a specialist license). If your state allows a maximum amount to be considered handyman work (500 in CA 1000 in other states etc) and you did NOT exceed that amount then you are owed the money. In states where there is NO tree contractor license you do not need to worry about a maximum at all.
Even if you agreed on more as long as you only try and collect the maximum then you can win in small claims.
Here is the kicker: In almost EVERY state a worker has the right to claim unpaid wages against a property they worked on and file a lien against the title. If you have NO business license and no business card and do not advertise and someone hires you to do work then they are your employer under the law (just like you worked for General Motors etc.). Businesses have the same right as individuals generally speaking.
These kind of criminals that hire people without intent to pay them need to have their property liened by the proper filing, then they need to be taken to court for collection. Remember they will NOT be able to sell their property without paying the amount owed plus interest.
If you can find others that had the same thing happen by the same person you can file ongoing criminal conspiracy charges (include the officer in the conspiracy) against them all. Remember, a police officer can ONLY arrest you if you violate the law….and if you have not violated the law then they can make no legal statement that you are not owed anything, they must tell the parties that this is a matter for civil court. Anything else said by the officer makes him part of the conspiracy to defraud.
Not sure , but if you had a contract sighn you might have put a lean on his HOME. That way he could not sell it until paid In full and maybe plus interest.
So no contractors license to be a handyman in the Tidewater, VA area but do I need any type of license? Will I be able to get insurance without a license?
Carl, you will still need a business license no matter what.
In California I do both. I’m a licensed tradesman and unfortunately can’t get enough work in my trade to stay busy, so I’m also a handyman. The only way to do this legally is (A) Have two business with two sets of books or (B) Combine the two and risk the assessment of a (less than professional) perception. It may be a detriment on my website to list handyman services along with my specialty trade but a man’s gotta do what a man’s gotta do!
Hi so I live in Northern California and I was going to obtain a business license etc to start up my company with my fiancee. He has a contractor license for flooring, so I guess my question is if I’m the one obtaining the jobs for him is there a way I can just contract him out to do all the jobs and be able to pay myself and him too? I’m the one who keeps all of his records together as well as his clients and I’d like to get paid for my services as well hehe. Any advice would help thank you
Hi Notoshia,
The easiest way to do that is just form a partnership between you and your fiance. No need for another contractor’s license and you would just share the profits of the business.
If you are trying to form your own separate business and sub-contract to others you are going to need a contractor’s license.
This is for all California thinking about handyman or license. A small job is $500 labor & materials with No license! Handyman in California need license and insurance. I can understand all I just read if no one lives close to big city’s, I would stay handyman in that case. Big City’s have the opportunity to earn money contracting plus it all is how you also do contract with clients. I have done both, I found license is a way the State protects me and there is also the Mechanical Lien that helps.
What about Washington state. .will I need a handyman license?
In Washington State Handymen are considered a Specialty Contractor and require a license, surety bond and general liability insurance. Don’t need to take any tests though 😉
FYI for Maryland, as of March 2016:
Pretty much any work you do at somebody’s home (“home improvement”) for compensation, inside or outside, requires a Maryland Home Improvement Commission (MHIC) Contractor License.
Home improvement is defined by the Annotated Code of Maryland as “The addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or was designed to be used as a residence or dwelling place, or a structure adjacent to that building or an improvement to land adjacent to the building.”
The only activities specifically exempt are new home construction; replacing an appliance that requires alteration of existing plumbing lines (huh?!); work in apartment buildings with 4 or more units; work in common areas of condominiums; and sales of materials if the seller is not also installing the materials. However, salespersons of home improvement services must also be licensed by the MHIC, so if you grow enough to hire a salesperson, that person needs a license, too.
If you want to look it up, it’s Title 8 of the Business Regulation Article of The Annotated Code of Maryland (look for Subtitle 1; Section 8-101, “Definitions”).
Hope this helps. When in doubt, ask a lawyer. It’s cheaper than paying a fine.
I see that every where and have been trying to find out more about this MHIC but can’t find any info. When looking for the MHIC # in the DLLR database for many companies, I can find their HVAC# but not their MHIC#. If a company has an HVAC license does that cover the MHIC # as well? Very confusing looking for the qualifications of contractors.
I have been doing property preservation work for about 6years now. First in Georgia now in Washington state. Question for you all: if I will only be doing lock changes, grass cuts, winterization etc. Nothing to do with plumbing, dry wall or building, then I don’t need a contractor license or so I? I already have my 1 million insurance. I don’t believe I need anything else. Any postive feedback is greatly appreciated.
Hi Crystal, in Washington you need a Handyman or General Contractor license to do the work you’ve described, sounds like you’ve got the insurance, so now you just need a business license, surety bond and a contractors license. its sounds a little crazy but you need a license to cut someone grass around here, legally anyway.
Good luck
You do not need a bond or insurance to cut grass in WA state. Just a business license, at the minimum.
I’m curious, in California as a handyman are you limited in the services you can offer? I understand labor and material cost cannot exceed $500 and that services that require a permit cannot be provided, but what about simple yard clean-up, garage cleaning, moving storage containers for elderly folks, or even walking a dog? Is a HandyMan Business License essentially all-inclusive in CA?
Thanks!
I live in illinois I am trying to start a pc repair business and refrigeration business and housekeeping business where customer can call or go online and book request for service call. Also i want to hired sub contractor. Als o list the license i will need and everything i need to start my business correct way thank ti everybody who respond
If I hire a person who has a license, can I operate as a licensed business? Or would I need to make them a partner?
I am trying to clean apts. ,but I will b my own contractor in doing so. My question is to get insured do I need a license?
I like painting interior of homes. I now work with a guy resurfacing bathtubs and some kitchen and bathroom cabinet painting. Ive painted before and enjoy doing it. Now i would like to make my own painting service. Now my only concern is at what dollar amount do i need to be licensed for? Small jobs, big jobs or both? I mean if business is there and going good I’d legalize my business.
Hey I’m in New York City I want to start a small maintenance business just my self I also waiting on application for license contractor and self contractor thank you for all responses
Hi, I have a question for you Dan or anyone who can help. My husband has been running his own business for a few years now and I am starting to help out with the business side of things. The laws in Ohio have been very confusing for me to decipher. I was under the impression in Ohio you did not need a license to be a general contractor. However, when I went to pull a permit, you have to be a contractor to do so. So does that mean you can do jobs that don’t require permits (even if they are higher than $1000)? Or am I all wrong about not needing a license? At this point we are going to get him a license but I’m nervous that most of his experience we can list on his application has been within his own business doing work that perhaps he shouldn’t have been doing without the license…could that hurt his chances of being approved for a license? Also, we have a business id (an EIN) but not a state/city license. Again I am having a hard time trying to find what kind of business license we would need and am only seeing information regarding an Electrical, Plumbing, or HVAC contractor. He is looking to be a Home Improvement General Contractor. Any advice you can offer would help me tremendously. Thanks!
Do you need to be insured for floor covering and interior\exterior painting? My fiancee and I offered to do a tiling job for a small business in town (local two roomed small movie theatre). We both have experience and knowledge in this area. It is laying VCT. The owner didnt want to ri up old VCT. He wanted us to tile over it. We had never done this. Only tiled on wood or contrete , using epoxy to level and tile glue to adhere. After we had asked a few general contractor friends and did some research , we were advised that putting VCT over VCT isnt the best way to go. The glue doesn’t adhere well to the gloss for lay over. We told owner that we’d do it his way but didn’t recommend it or guarantee the work. After we had drawn a contract to insure us payment and to be clear on job description (protecting us and owner) , mentioning that we were doing lay over and advised owner of not doing so, we then were popped with the question if we had insurance. The owner already had us working , without a signature to remove old seating. Weve been doing sidework , drywall, painting , roof repairs for locals for awhile. Since we’ve not been involved with any contractors or businesses we’ve never thought of legal matters , just the matters of making alittle cash for our family and helping out people who didnt want to p[ay the big contractor to come in. Any advise would be great!!!!
Dan,
There is a comment in your article which I cannot for the life of me understand.
“If I was to get a contractor’s license, I would technically be limited to only performing jobs within that license. Meaning, if I got a carpenters license, I would no longer be able to legally offer painting, tile, drywall repair, and several other services that I occasionally offer. Even a general contractor’s license would limit my services.”
I am trying to find the answer to what seems to be some simple questions.
1) Can a General Contractor license allow him to hire employees and/or subcontractors who do NOT have licenses in classifications like tiling, windows, painting, electrical and plumbing for a single project or does he need to hire people with those classifications to actually do the physical work?
If you actually hire the employees, yes. You can hire anybody you want to perform the physical labor, but as the contractor you are responsible for it being done correctly.
If you are going to subcontract out jobs, then those subcontractors will need to be licensed in whatever trade they will be performing.
Hi Dan,
Thanks a lot for all your insight. Your website has been an awesome resource as my husband starts his handyman business. Things are going really well for him, and because Washington DC (where we live) requires a license for any project above $300, he feels limited and has decided to get a license. One question: DC law requires a surety bond in the amount of $25,000 as a part of the application. Is this common? Because his credit isn’t exactly stellar, this may end up being a fairly substantial expense (upwards of 5 to 15% of the bond amount). Any advice you might have on this topic would be greatly appreciated.
Again, thanks for all your insight.
Rebecca
I’m seriously considering venturing off on my own as a “Handyman.” I’ve been remodeling homes for 14 years now and have extensive experience with all types of flooring, drywall, painting, trim work, tile, and general repairs.
Does anyone know any of the laws in Minnesota regarding handymen? I’d like to market myself as “Home Improvements” and just want to know what my limitations are. I honestly have no intention of doing any plumbing, hvac or electrical. I have guys I’ve worked with for years who I would hire for those projects. I would personally be focusing on everything else I previously mentioned. That said, MANY of my side jobs now are well over 1,000 dollars, and I suspect that would continue, but I’m having a difficult time finding information about the laws in MN regarding me doing any of those things.
Thanks for this blog, it is in fact helpful.
Hi Dan,
I am a handyman for a local property management company in California. I mainly do general maintenance work orders for them. CA requires anyone doing a job valued at $500 or greater to have a contractors license. The CA website indicates one job or multiple jobs totally this amount. Does this mean I should have a license in order to perform these small general maintenance jobs?
Thank you!
You wouldn’t need one to start a handyman business, although it would open up opportunities.
Also, consider that this only applies to if you are repairing, installing, or doing maintenance on something that is permanently part of the home structure. I believe things like hanging pictures, shelves, and furniture assembly jobs are no included in this.
Basically, you wouldn’t need a license to build a business, you would just be restricted.
I live in va and im am taking my va home improvements contractors test this week. I do flooring, drywall, decks, painting, trim carpentry, doors, windows, roofing, small additions etc. Does all of this fall under my specialty?
I am currently looking into starting my own handyman carreer. I have done all types of different jobs and trades. So I’m very versatile with my skills. What I don’t know I will research and find out the correct way to get it done. Where do I start? I run a hotel well I’m the grounds director here and handle any and everything that comes up. Yard maintenance to just put on a medal roof on the main house. Where to start?
You could start by just reading every blog post on this website, or take the fast track and check out my complete guide “Turn Your Skills Into Profit.” (you can find that in the products area.)
Just need to know about needing a licence for handyman or otherwise. – do I need a business name. -how to deduct taxes for a single person handyman. – how to write up a Bill for labor to be paid. And probably more.
I’ve got a lady who has posted needing a cheap labor to work on water pipes fixing missing vinyl siding putty walls and paint and other things need to be done it will be a long-lasting job if interested she has described the few things to me as far as the guy has pretty much good at the downstairs he’s even put the kitchen upstairs a lot of work is going to need to be done but I am not a licensed contractor I have some skills and carpentry and a lot of others but I am no certified handyman but I’m wanting to know how I should try to bid this job I really won’t know till tomorrow when I go look at it which I will take pictures and go to the friends I have that actually are certified handyman but I’m just worried about not having an actual license and if there’s any way she can skate around me without paying me or how I should charge her for the work I’m going to do my main reason for sending this comment is I want to know how I should charge the lady for one they have some material but of course Sunday will be having to pay for but it’s going to be fixing water lines vinyl siding and pretty much fixing three bedrooms downstairs even the kitchen that has been gutted and the guy that live there moved everything up stairs and made himself an apartment out of it but my question is how do I charge this lady and still look somewhat professional do I try to get an hourly rate do I flat rate it and try to get half money down the rest when the job is done because I’m pretty sure it’s going to be one of those jobs did you really not going to know how the estimated until it’s almost done I’ll know more tomorrow evening when I go look at it and take pictures but I’m asking your opinion of how you would do a job like this
In your case the woman advertised or came to you. HOWEVER, since she came to you (if you keep proof of this) then you are her direct employee and she is acting as an Owner/Contractor. Technically if she hires you she is required to pay SS taxes, have workers compensation etc. just as any other employer. You need not tell her that, she by law must already know it and follow it. You can even do all the work you want to for her and then file whatever you need to to make her pay those taxes.
While you can make agreements to to “piece work” with her, taken altogether in some cases that could create a general contractor condition. If she offers work and is the one that wants it paid as piece work then you are probably alright, PROVIDED that you keep notes and records of each conversation and offer she makes you.
Remember, owners of properties they live in can be an owner/contractor and need no contractor’s license. If you do not advertise your services to them and they offer work to you then you become an employee…..period. You need not tell them this up front, as a contractor the owner must know this. The IRS will go back and collect SS and whatever your deductions for federal taxes that should have been withheld from the employer. The state will require them to pay unemployment taxes on your wages as well.
I’m in Oregon, if I already have my handyman license what do I need to do to get my contractor license?
What about doing work as a sub-contractor? Is that a complicated route? And as I’ve always thought; you can work under the other guy’s license. Is that correct? I’ve always just wanted to do handyman work which I enjoy but I don’t know where to start as far as getting jobs and bidding. Right now I work at an underground zinc mine, and I do make super money! And especially for a guy in mid Tn with just a high school diploma. But I’ve just become so unhappy and want to do something that I’ve always wanted to do. I’ve thought maybe I could get a small job here and there from a contractor who might be swamped at the moment and eventually earn trust for bigger higher paying projects. Any thoughts on taking that route? I obviously won’t be quitting my day job just yet!!
The answer is….don’t. If you work under the other person’s license on his jobs then you are an employee. You can work “piece work” meaning bid the job and get paid…but the contractor MUST take our taxes and pay SS etc.
If you want to do it as a business then form a separate joint venture with a licensed contractor as a “qualifier”.
Do not let a contractor tell you that you can be a sub without a license. They know better. In states with state taxes this can be a serious matter, federally it can as well.
A family friend has work needing to be done as far as replacing drywalls, floors and ceiling and painting. Do I need a general contractor license if insurance company is involved?
I’m in Louisiana Lake Charles to be exact. After hurricanes Rita and Gustave some codes have changed. For one brackets are required on every rafter. And I tell you our inspectors are a beast here. But I’m not sure if I’d need a contractors license at the form reason is because we have serious wetlands here. Most times we have to bring in loads and loads of dirt that has to be packed to prevent sinkage of slabs. Will I need a license to form slab which is really undesirable to me “forming”. I’m really a framing and black in HANDYMAN wrap felt installation of Windows and doors then I’m gone for the next. But lots of times here in Louisiana customers cringe at framers when they aren’t licensed especially when formers insist on their beliefs of who homeowners should aquire to build their new home. I love framing. Also I believe we have to be insured to prevent homeowners from being sued. Here they call it insured licensed and bonded. It’s a war for me because I have only 11 years of active carpentry but I’ve been knowing carpentry since age 14. Can even draw and read blueprints. The guys with 30 40 plus experience without license always get the jobs forcing me to seriously under bid myself. So it’s important to know what is it I should do about being licensed vs not being licensed
I am A Handyman for a local property management company in California for 10 yrs.
The lawyer says that the work must be done by a license contractor…
I’M OUT OF WORK!
Can someone tell me what I need for the same property mangement co.???
The work order says if over 500.00 get approval??
Thanks for the article, it pretty much confirmed what I’ve been thinking for a while now. I’ve worked residential construction on and off for almost 10 years and commercial for 5-6, currently in commercial roofing. Here in Mississippi, we’re fortunate to have a leniate state board; new residential jobs under $50,000 or remodels under $10,000 do not require a license. It’s something I’d been thinking about for side work and possibly my own business down the road but since I read up on our state requirements, I think I’ll continue as is for the time being.
I am a 20-year-old college student who loves building and working with my hands. I have “unverifiable” experience in many of the trades (I’ve literally done it all). My buddy and I want to start a deck building business to make a little extra cash for school. I am unable to become a Licensed General Contractor because apparently learning from my grandfather who has been a carpenter for 60 years is not good enough, is there any other alternative. Do I even need to be a GC to do small scale decks? Thank you for the help.
-Darren
I like your blog your blog is very interesting and informative.
Thank You
Hello Dan,
I like your article. I am a licenced cabinetmaker (C-6), I decided to get my license because I wanted to take on the $10k jobs without concern. I found your article after searching for information about adding a classification to my license. There is something to be said about the amount of insurance and cost of bonds that I have to carry BECAUSE I am licensed, which I imagine a handyman doesn’t have to carry (but I don’t that for sure!) That is definitely a bit of overhead that you have to be confident you can cover before getting your license. I had 10 years of trade experience before deciding to be a cabinetmaker so I am quite sure of my choice.
My only gripe with your article is the limitation for services offered after getting a license. I can still offer services outside of my classification, as long as it doesn’t exceed $600 in labor and materials. (That is the CA maximum for unlicensed services.) Even handymen have to abide by those rules. Also, as a cabinetmaker, I can do whatever electrical or plumbing is necessary to finish my cabinet/carpentry work. I can even add painting a room to that job as long as that aspect of the job is under $600. So getting a license in a specific area isn’t a limitation. If anything it is an expansion. You can still take on any small jobs you want, and you can bid higher for jobs that fall under the definition of your contractors license.
Furthermore, being a licensed contractor doesn’t necessarily mean you have to strike out on your own. It shows that you are proficient in your work and have passed the exams. You can then set your license to “inactive” and go work for someone else at a hire pay rate because now you have better credentials.
I was a “handyman” for a while but now have my builders license and EPA RRP certification. I can say without hesitation that, if you are trying to make a living fixing people’s houses, you need a license! In Michigan you can take no job where the total cost, both labor and materials, cost more than $600. It was hard for me to even find jobs that cost that little. The other benefit of the education required to get the license was to learn about the EPA’s federally mandated law that says you MUST be certified in order to work on any house built before 1978. The fines are huge if found violating this code. For a little time, and maybe a grand in total costs, I can now take jobs that make me thousands both legally and safely, and I don’t have to worry about advertising freely.
Great article! Thanks for sharing. I have a quick question: I plan on building single dwelling houses in Florida, but I’m Canadian. Our business model in Canada is we have as little overhead as possible (1 project manager employee per site) and we sub out all of the work. We literally don’t do anything ourselves other than manage the sub trades.
I’ve been told by a helpline employee that we do not need a GC license for this, but I’m trying to verify it with another source. Any idea?
Thanks!
Hi Dan – I am a GC going into Handyman work as a path to retirement. Building custom homes is a PITA… 🙂 Just to add some info……Here in CA, as a GC, you cannot do any job (except carpentry – framing or finish) without combining 2 or more trades. For instance I cannot fix an electrical switch unless I do some drywall or carpentry in connection with the electrical repair. Easy enough to do. Or I can do drywall repair only if I do paint or framing along with it…..
So easy enough to combine these, but what a pain…why they penalize a long-time General Contractor like this is beyond me…..probably a reaction to the electrician’s unions or some such nonsense….
BTW – Thanks for all you do…
I’m thinking about starting a business, I’ve worked in construction for 12 years, I love hanging drywall, doing tile is something I’ve recently learned that I love doing, I love doing hardwood floors, trim, I’m good at painting, I work under a business now, but I want to go out on my own and start, I live in Ohio. Where do I start, what is my first step, I want to get jobs of my own, but I can’t stress enough that I want everything to be legitimate and at the end of the year I want my taxes to be right, but I have no experience bidding jobs at all hardly, I always shoot a price out there, and after I’ve made my bid I think we’ll, I feel like I underbid that job..
Great re-cap Dan! Getting a contractor’s license can be extremely beneficial when looking into larger projects, especially in the state of California.
I love the information provided by your article and the comments. What is required and the parameters of being a handyman in Memphis TN?
Thanks in advance!
I started a handyman service a year ago and its going well, but I’m getting calls for increasingly bigger jobs and I’m struggling to stay below Virginia’s $1000/job limit without a class C contractor’s license. Is it legal for me do a job (for example) that is $1000 in materials alone and $500 in labor ($1500 total), if the client purchases and delivers the materials themselves and just contracts me to perform the build for $500?
I have years of experience both in construction and running Lumber yards. Unfortunately got sick with a disease in 2007 and have been out of work and on disability ever since. I am in CA and have been remodeling my own house for the last 2 years. Was thinking of starting my own handyman business. Here’s my question can I use the handyman experience to satisfy the 4 year experience requirement for a Contractor License??
Not sure exactly how it works in California. In some cases you can use DIY experience if you pulled permits.
You make good points! I have often wondered if I should get my contractor’s license but now I think I will hold off. We offer many services, I wouldn’t be able to offer some of these services if I get the license? That is insane! Seeing as I am new in this space and want to get better, I will keep up with the small jobs. It is working out nicely! I am building a reputation in my area and can’t wait to continue growing! Quoting has so far been one of the harder aspects but with small jobs it hasn’t been too difficult. I am already running into issues with quoting a price and then much more work than anticipated needs to be done in order to complete the job. Luckily, I always leave a buffer with my clients and explain to them the cost may vary depending on the rest of the needs. I am getting better with quote and will keep learning. Is there a blog where you go over the quoting process? I would love your insight on the topic.
Hello Dan Perry, I’m very happy that i found your website. It provided me with understanding the don’t and do-es. I’m confident now that I have a community that is there to help and also knows how much hard work goes in to this. THANK YOU!
Your article provides a comprehensive overview of the pros and cons of obtaining a contractor’s license, as well as the necessary steps and requirements for obtaining one.Thank you for sharing your expertise and insights on this important topic.