Handyman Licenses in Iowa – Everything you Need to Know

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

I’ve pored 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 Iowa?

No. In fact, a license–handyman or otherwise– isn’t needed to perform small construction, renovation, or maintenance projects in the state. The exception is HVAC, plumbing, electrical, or mechanical work. In these circumstances, a specialty license in the respective field is required.

What IS needed, however, is your contractor registration if your handyman work earns you $2,000 or more over the course of a year.

If your earnings are less than $2K, no registration is required. This exemption also applies to residents of Iowa working on their own real estate or residence–a contractor registration isn’t needed.

How do I register as a contractor in the state?

Registration is done through Iowa’s Department of Inspection, Appeals, and Licensing (DIAL).

The contractor registration form neatly outlines the few, simple steps that are required.

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

Iowa does mandate one rather uncommon (but not difficult to take) step–application for an unemployment insurance account number. This is required whether you have employees or are a sole proprietor working alone. Applying for the number can be done here, and it will be used when processing registration payments and renewals.

Speaking of payment, some handymen (i.e.,” self-employed contractors not working with or for other contractors”) may qualify for a fee exemption, allowing them to avoid the $50 application charge.  Applicants who qualify for a fee exemption will need to complete and submit this form.

Contractor registration needs to be renewed annually, at the same $50 rate. Happily, the state sends helpful renewal reminders: it’s one less thing a handyman (or any contractor) will need to keep track of.

Limitations for Handymen

Iowa is a state that offers broad latitude in the type of work handymen can take on.

The plumbing investigator I was connected with stressed that “new on old” is okay. For example, replacing an old sink, toilet, or tub with a new one is acceptable work as long as there is no reconfiguring of or adding to the pipes. Minor repairs to faucets, valves, pipes, and appliances, as well as drain cleaning, are also available to the handyman.

Similarly, the contact I spoke with on the Electrical Board said that swapping out old fixtures for new is allowed, along with low-voltage work like installing home alarm systems, computer networks, or AV equipment. Much like in plumbing, it’s the reconfiguring or replacing that is problematic–rewiring requires an electrical license.

Advertising Restrictions

I was fortunate to connect with the state’s investigator for contractor registration, who advises getting registered prior to any advertising. And like in most states, handymen in Iowa need to be careful not to “oversell” themselves in their ads, on their websites, or on proposals and invoices. Stick with the occupation listed on your registration, and avoid language (i.e, “licensed contractor”) that can mislead consumers as to your true certification.

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

Insurance Requirements

Handymen in Iowa 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 with others working under them will need to purchase Workers’ Compensation coverage. Handymen without employees don’t have this obligation.

Penalties for Contracting Illegally

Handymen who violate registration requirements (or take on in-depth electrical, plumbing, and other specialty-licensed work) put themselves at risk. The Labor Commissioner may issue citations of $500 for the first violation, and up to $5,000 for subsequent infractions. The state’s enforcement process is outlined in Section 91C.8 here.

Be smart—work within the parameters Iowa 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 Iowa?

While a DBA registration (“Doing Business As”) isn’t required to perform handyman work in Iowa, the process is so easy and the fee so modest ($7), 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 for handymen and other sole proprietors is done at the county recorder’s office in the area where you do business.  The list of county recorders’ offices, along with their contact information and location, can be found here.

Conclusion

Iowa is a great place to start a handyman business.

The state allows handymen to “try out” their profession prior to going through the application process; they can earn up to $2,000 in the field before they need to obtain their contractor registration.

Handymen in Iowa are fortunate that no education, training, or exam is required to provide services.

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

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

Do you offer handyman services in Iowa?

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