Handyman Licenses in Tennessee – Everything you Need to Know

Before starting a handyman business in Tennessee, it’s smart to know what services you can lawfully provide. This will keep you out of legal trouble, help you look more professional, and 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 to state inspectors, and reviewed the state’s regulatory agencies. Here’s what I’ve found.

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

There’s no license required for handyman projects as long as the work for each project stays under $3,000.

Compared to most states, that’s a high limit for unlicensed contractors, allowing you to start a profitable business without getting licensed right away.

In some parts of Tennessee, a Home Improvement Contractor (HIC) license is needed for jobs greater than $3K and up to $25K. The counties that mandate an HIC license include: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby.

Because regulations differ by region, it’s advisable to check with the county clerk local to you to understand license requirements in the area you’ll be working.

Limitations for unlicensed handymen

Like all states, however, there are limits on the types of work you can perform, including plumbing and electrical work.

The ability for handymen to engage in electrical and plumbing jobs isn’t uniform throughout Tennessee. While some municipalities allow for the replacement of standard (non-GFCI) outlets and the swapping of ceiling fans without an electrical license, others do not. Similarly, while replacing a toilet flapper and unclogging drains is permissible statewide, many counties forbid work involving actual plumbing connections.

Since ordinances vary across the state, it’s essential once again to check at your town offices to confirm what electrical and plumbing work is and isn’t available to handymen in the area you’ll be working.

Advertising Restrictions

To comply with state regulations, all handymen in Tennessee must 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 Contractor if you haven’t gone through the steps to obtain a Contractor license.

If you live in a county that requires an HIC license, be sure to display your name and license number on your website, advertisements, social media, and proposals. Likewise, if the district you work in mandates a business license, include those details on your marketing materials. These steps will keep you compliant with regulations while building credibility with prospective customers.

Insurance Requirements

There are no insurance requirements for handymen who work independently and earn less than $3K per project. The math changes, however, if they have others working under them, in which case they’ll need Workers’ Compensation coverage.

HIC license holders, on the other hand, will need proof of a surety bond, Workers’ Comp (if they have employees), and General Liability coverage. Insurance requirements in Tennessee are outlined by the Board for Licensing Contractors.

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 obtain a Home Improvement Contractor license?

If you aim to take on work over the $3,000 threshold and live in a county that has adopted the law (see list above), you’ll need to apply for an HIC license.

While there isn’t an exam or educational requirement, you’ll need:

1. proof of a surety bond
2. Workers’ Compensation coverage (if you have employees)
3. General Liability insurance
4. experience in the home improvement field
5. $250 for registration

The application process begins here. Applicants will be asked to provide an email and password before being prompted through a few simple steps.

Licenses need to be renewed every two years at a cost of $200.

Do I need a business license to work in Tennessee?

Once again, the answer is “it depends.” Nashville, for instance, mandates a business license if you earn over $3,000 annually. Not every municipality requires one, though, so once again, handymen should check with the county clerk in the area they’ll work.

And just to be clear, the $3,000 annual limit is different than the $3,000 project limit listed above. The annual limit is for those without a business license, and the project limit is for those without an HIC license.

So, if you don’t have a business license or an HIC license, you can legally tackle projects up to $3,000. If you have a business license but no HIC license, you can handle as many jobs as you want, as long as each job is less than $3,000.  If you obtain a business license and an HIC license, you can tackle as many projects as you want, as long as each project stays under $25K.

A business license in Nashville can be applied for here and costs between $15 and $30.

Are there any other requirements for handymen in Tennessee?

Yes. Registering a DBA (Doing Business As) name is required if you choose to attach a moniker to your business that doesn’t include your surname.

For example, if Joe Smith names his business “Joe’s Handyman Services,” he’ll need to file a DBA. If he labels his business “Joe Smith,” however, he won’t need to file, as his legal name is his business name.

DBA filings are processed through the county clerk’s office in the jurisdiction where you conduct business. If your district requires a business license, a DBA can be filed at the same time.

Penalties for Contracting Illegally in Tennessee

Tennessee is serious about curbing illegal contracting.

If you take on jobs over $3K without an HIC license, you could be charged with a Class A misdemeanor, incurring fines and an inability to obtain licensing in the future.

Partaking in unsanctioned electrical or plumbing work without a license carries its own risks. With few exceptions, offenders can be fined up to $1K per violation, with the punishment compounding each day of continued offense. These penalties are posted here and here.

Be smart—consult with the county clerk in the area you work to be clear on acceptable plumbing and electrical tasks. And leave the rest to those with the proper licensing. And, for certain, get your HIC license if you plan to take on “the big jobs.” The penalties aren’t worth it.

Conclusion

There’s a steady demand in Tennessee 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.

Tennessee is a state that allows its local governments to craft their own business regulations. For this reason, it’s essential to check with the county clerk in the area you work to be clear on what you can and can’t legally do.

As long as handymen remain mindful of restrictions on trade work–and go through HIC and Business licensing where required–there is real money to be made in Tennessee’s home improvement space.

Do you offer handyman services in Tennessee?

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