Offering handyman services professionally is both profitable and enjoyable, but before you cash in on your home repair skills, it’s essential to understand the laws.
In this article, you’ll learn everything you need about licensing laws for handymen in the state.
I’ve poured over pages of difficult-to-understand legal jargon and pulled out the critical information you need before offering handyman services for profit.
Do you need a license to offer handyman services in Michigan?
The short answer is no.
A license is unnecessary to work as a handyman in Michigan as long as you work within the limitations.
Let’s get to those.
Limitations for unlicensed handymen
There are restrictions on the type of work you can perform under the handyman exemption in Michigan.
First, jobs must stay under $600. These “under $600” jobs fall under the state’s handyman exemption. Jobs that often fall under this cap include:
- Drywall, door, and deck repair
- Gutter cleaning
- Caulk application; old grout removal
- Fencing/awning installation/repair
- Moving/furniture assembly/shelving
- Wall/trim painting
- Plastering
- Asphalt paving
Second, you must have specialty licenses for electrical, mechanical, and plumbing work.
That said, the state allows unlicensed handymen to dabble in these areas along the periphery. For example, you can change the flapper in a toilet or install a new sink as long as the plumbing system is not altered. A new ceiling fan or fixture can be installed if no rewiring is involved.
For other questions about what’s sanctioned and what’s not, it’s safest to inquire directly to ensure you’re following the law.
For work over $600, you’ll need a Residential Maintenance and Alterations Contractor license. Fortunately, the application process for this license is straightforward (more on that below).
FREE REPORT
“10 Profitable Handyman Services You Can Offer WITHOUT a Contractor’s License”
Stop waiting and start making money. Download this short PDF, where I reveal ten of the most profitable, in-demand services you can start offering today.
How to Get a Contractor License in Michigan
Licensing is handled through the Bureau of Professional Licensing (within LARA – Michigan’s Licensing and Regulatory Affairs department), beginning with a manageable, two-page application. Satisfactory completion of coursework (18 elective classes; six required) and a written exam are part of the approval process.
Interestingly, the state also looks for confirmation of “good moral character.” If you have past criminal convictions, it’s advised to contact the Bureau of Professional Licensing before beginning your 60-hour training course.
Fees associated with licensing include:
- Application fee – $195
- Tuition for 60-hour pre-licensure education – price will vary depending on class.
- Examination Fees – $70 to $114, depending on the number of trade portions you choose to sit for.
The Residential Maintenance and Alterations Contractor license is valid for three years, after which it must be renewed at a cost of $150 (which can conveniently be done online).
License holders must also take part in continuing education courses to maintain their status.
Is insurance necessary?
There is no law in place requiring handymen to carry insurance. The exception is if the Residential Maintenance and Alterations contractor has three or more employees OR if any worker under your employ works 35 hours or more per week.
Advertising guidelines and constraints
In many states, there are limitations on your ability to advertise without obtaining a license.
In Michigan, however, there are no laws clearly stating any restrictions.
However, the clerk I spoke with at LARA indicated that a handyman must have a valid Residential Maintenance and Alterations Contractor license to advertise. She added that the contractor’s license type and number need to be included in marketing materials.
That is one clerk’s opinion, though, and I recommend looking further into this. I was once ticketed for advertising without a contractor’s license, but I took it to court and won because it’s unconstitutional to limit advertising on services that I can legally provide. It violates the First Amendment.
So, as long as you aren’t advertising as a contractor or advertising services that require a contractor license, the risk is low.
Penalties for contracting illegally
Working outside laws in place for handymen–whether performing work over $600 without a license or engaging in plumbing, mechanical, and electrical work without the proper specialty authorization–places the handyman in jeopardy. Michigan state imposes harsh punishments for contractors working outside the legal framework – up to $25,000 in fines and/or a year in prison.
That’s a steep penalty, so it’s best to work within the limitations or get a license.
Conclusion
You can run a profitable handyman business in Michigan without a license. $600 may seem too restrictive, but it’s really not.
Take California, for example. The state’s limit for unlicensed handymen is just $500, yet I’ve met dozens of pros who do very well working within those limitations.
That being said, getting a license is probably worth it because it opens you up to bigger, more profitable jobs and can help build credibility.
If you aim to undertake larger-scale jobs, clocking in over $600, you’ll need a Residential Maintenance and Alterations Contractor license from the Bureau of Professional Licensing within LARA.
For additional questions, try calling the state’s Bureau of Construction Codes, Licensing Division at (517)241-9316. I reached a knowledgeable clerk after a short wait, who was able to respond to specific inquiries. And for links to “all things licensing,” visit www.michigan.gov/bpl.
