Before starting a handyman business in Pennsylvania, it’s smart to know what services you can lawfully provide. This will keep you out of legal trouble, help you look professional, and position you to earn more money.
You also need to know what to do and where to go to get your business up and running.
I’ve pored over pages of complex legal jargon, spoken with state inspectors, and reviewed state regulatory agencies. Here’s what I’ve found.
Do you need a handyman license to offer services in Pennsylvania?
No, not at the state level.
Individual municipalities, however, can impose their own mandates, so it’s important to check with the county clerk in the area where you’ll be doing business to see what local conditions apply.
While there is no statewide license requirement, handymen must register their business if they earn over $5,000 annually.
The takeaway, with few exceptions, is this: if you’re content to do handyman work as a side hustle and keep yearly earnings under $5K, you don’t need a license or registration. On the other hand, if you’re game to make a real “go” of Handyman Work as your primary occupation, you’ll need to register (and get licensed if your city requires it).
Limitations on handyman work
As in most states, limits apply to the type of work handymen can perform, such as plumbing and electrical. I was fortunate to find a post on Pennsylvania Codes, specifically Rule 34.403.42, that clearly outlines what is and isn’t permissible. For example, Sections #2 and #5 detail exemptions to licensed trade work in the electrical and plumbing fields.
While Section #5 reveals broad latitude in plumbing (removing and installing toilets, sinks, and faucets is okay!), Section #2 exposes the very real limits on electrical work (virtually nothing is available to handymen unless they’re working on their own owner-occupied residence).
In a nutshell, handymen can offer a range of common plumbing services in Pennsylvania, from drain clearing to leak repair to removing and installing bathroom fixtures, while they’re restricted from electrical projects.
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Advertising Restrictions
While very few states I’ve come across lay out advertising regulations, Pennsylvania is one of the few that does. In fact, Pennsylvania’s legislature created a one-stop document that outlines most of what a home improvement contractor needs to know before taking on customers. The Home Improvement Consumer Protection Act (known as HICPA), covers advertising along with information ranging from registration to contracts to rights and obligations.
Section 517.6 of HICPA requires handymen to include their Pennsylvania contractor number (often called their PA#) on all advertising, contracts, proposals, and estimates. This will keep you compliant with regulations while building credibility with prospective customers. Contractor numbers are sent out after a registration application is approved.
Pennsylvania handymen must also ensure the work they’re promoting doesn’t require specialty licenses they don’t hold. In other words, don’t offer electrical services if you don’t have an electrician’s license. And don’t promote yourself as a plumber if you haven’t completed the schooling and exams required to obtain a plumbing license.
Insurance Requirements
Home improvement contractors, which includes handymen in Pennsylvania, must carry personal liability insurance of at least $50,000 and property damage coverage of at least $50,000.
If handymen have employees working under them, they’ll also need Workers’ Compensation insurance.
Handymen who work independently and earn less than $5K annually don’t need insurance.
Whether insurance is required or not, it’s still a smart idea to protect yourself and your customers with a general liability plan. And it’s inexpensive if you get it here.
How do I register as a Home Improvement Contractor?
If you plan to take on work over the $5,000 annual threshold, you’ll need to apply for HIC registration.
While there isn’t an exam or educational requirement, you’ll need:
- proof of liability insurance
- statement disclosing: history of registrations/licensing in other states
- statement disclosing: past criminal convictions and/or bankruptcy
- history of registration/licensing in other states
- social security number
- driver’s license number
- $100 application fee
Pennsylvania has made this process approachable and straightforward, posting instructions for each step of the application. When you’re ready to apply for your HIC registration, start here.
Licenses must be renewed every two years for the same $100 application fee.
Are there any other requirements for handymen in Pennsylvania?
Yes. The home improvement industry in Pennsylvania leans heavily on HICPA as its North Star for contractor/consumer regulations. In many ways, it simplifies running a contracting business–most questions an entrepreneur new to the space would have are answered in this readily available document.
Handymen would benefit from getting familiar with the Act, as non-compliance may result in penalties and unenforceable contracts. For example, HICPA details the protocols that must be adhered to in contractor/consumer contracts in order to be valid. If contracts are drawn up incorrectly, not only could the handyman be out the money for work done, but s/he could face civil or criminal charges.
HICPA can be found here, and is worth reading from start to finish. The Act covers a lot in a relatively short document.
Also important to note: if you’ll be using anything but your legal name in your business, you’ll need to file a Registration of Fictitious Name form (commonly called a DBA). Failing to file form DSCB:54-311 jeopardizes the enforcement of contracts between handymen and their customers, and exposes handymen to a $500 penalty.
A fictitious name in the state doesn’t create an exclusive right to the moniker a handyman has chosen; it’s designed to protect consumers so that the public knows with whom it’s doing business. Many people believe that registering a name means that no one else can use that name in their business, and that’s simply not the case in Pennsylvania.
As an extra layer of consumer protection, the state requires applicants to “officially publish” a notice that they have (or plan to file) an application for a Registration of Fictitious Name in two newspapers in the county in which their business is located.
Details on fictitious names and form DSCB:54-311 can be found here and here.
The cost to apply for a fictitious name in Pennsylvania is $70.
Penalties for Contracting Illegally in Pennsylvania
Pennsylvania is serious about curbing illegal contracting.
In fact, a sizable section of HICPA is devoted to fraudulent activity, describing in detail actions that are classified as misdemeanors and felonies, along with the penalties associated with both. Violations, from misleading statements to misrepresenting special orders, are forbidden and can lead to criminal proceedings and the revocation of a handyman’s HIC registration.
Performing electrical work without a license can also get you in trouble. Chapter 7, Section 701 of House Bill 2619 categorizes illegal electrical work as a misdemeanor, subject to fines up to $2,000 and imprisonment up to six months (second violations will get you up to $5,000 in penalties and one year of jail time).
Be smart—get yourself familiar with HICPA and adhere to its protocols. The state relies heavily on the Act when it comes to enforcement. And stay away from electrical work…leave those jobs to contractors with the proper licensing.
Conclusion
There’s a steady demand in Pennsylvania for the type of work handymen deliver. If you like solving problems with your hands, having variety in your day, and control over your schedule, the occupation of handyman may be ideal for you.
Pennsylvania offers wide latitude to handymen, once an HIC registration is approved, there’s no cap on how much a contractor can earn. If you’re interested in the job as a side gig, with earnings under $5K annually, you don’t need registration at all.
As long as handymen remain mindful of restrictions on electrical work–and go through the HIC registration process–there is real money to be made in Pennsylvania’s home improvement space.
Do you offer handyman services in Pennsylvania?
If so, I’d love to hear about your experience. Please leave a comment below to share any insights I may have missed.
