Before you offer professional handyman services in Vermont, it’s smart to know what you can legally do. This will keep you safe from the law, allowing you to earn money confidently.
I’ve pored over pages of difficult-to-understand legal jargon, spoken to state inspectors, and compiled the most critical information. Here’s what I’ve found.
Do you need a license to offer handyman services in Vermont?
No. In fact, licensing isn’t even required of General Contractors unless a project exceeds $10,000. The only state mandate is to register your business if you want a trade name or if you plan to take on work exceeding the $10,000 threshold.
Handymen in Vermont are given wide latitude in operating their business as they see fit. In addition to common contractor work (drywall repair/painting, cabinet/shelf installation, furniture assembly, etc.), VT handymen can also undertake structural work, such as additions and kitchen and bath remodels. This is one of the first states I’ve encountered that offers this level of opportunity to handymen.
Despite this high degree of leniency at the state level, individual municipalities can impose their own licensing and registration rules. For this reason, it’s essential to confirm local regulations with the Building and Zoning Department in the area where you plan to work before embarking on your new venture.
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How do I register my business? Anything else to work legally?
Business registration happens at the Secretary of State’s office, allowing you to select a catchy trade name for professional use (i.e., Henry’s Handyman Services rather than just Henry Smith). Registration is also required if you aim to take on work over $10,000. If you plan to limit your business name to your legal name and keep projects under the $10K threshold, registering isn’t necessary.
Next, you’ll need to obtain an Employee Identification Number (EIN) from the IRS if you have employees. That can be done here. If you plan to work alone, this step isn’t required.
Finally, all businesses in Vermont need to be aware of their tax obligation. Handymen will likely need to include business income when filing their personal income tax returns. This is one step that can’t be skipped…there’s no way around paying taxes!
Limitations for Unlicensed Handymen
I was fortunate to connect directly with both the electrical and plumbing inspectors for the state of Vermont. I was pleasantly surprised to hear about the broad range of tasks handymen can take on without specialty licensing.
Case in point: there are no restrictions on the electrical work handymen can do in single-family dwellings as outlined in the state’s statutes (see #6). Restrictions typically apply to condos/apartments/rental units, but for one and two-family residences, handymen have considerable latitude.
As far as plumbing, regulations are tighter, as their general rule of thumb is “if pipes are connected to town water and sewer, a licensed plumber is required.” Since many homes are connected to town resources, this limits the type of plumbing tasks handymen can take on. With that said, I spoke with a plumbing investigator on the team who shared: “Typically, if you’re in a single-family home and not moving pipes around, things like swapping out sinks, toilets, and faucets are considered maintenance, and maintenance can be hired out to handymen.”
The key takeaway? Electrical and plumbing work is available to handymen in Vermont, but multi-unit dwellings and homes not on a private well come with more restrictions. Check with Building and Zoning in the municipality you plan to work in to be sure you’re staying within the law.
Advertising Restrictions
Information on advertising a handyman business in Vermont is minimal. Despite the lack of guidelines, handymen should be cautious not to “oversell” themselves in their advertisements or on their websites, proposals, and invoices. If you’re not a registered General Contractor, for example, don’t say so on your advertising. This will help you stay clear of enforcers.
If you have gone through the registration process for GCs, please include your number on all business communications. It’ll only help establish credibility with prospective customers.
Insurance Requirements
There are no insurance requirements for those who work independently. If you have employees, the math changes: Workers’ Compensation and Unemployment Insurance are both mandated if you have others working under you.
As far as liability insurance, it’s not obligatory, but 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.
Penalties for Contracting Illegally in Vermont
Handymen without speciality licensing who engage in electrical and plumbing work–outside of what’s permitted face real consequences.
Fines of up to $1,000 can be levied against violators, as outlined in the state’s plumbing and electrical (p. 11) statutes.
Be smart—work within the parameters Vermont has laid out for handymen, and tread the gray areas carefully. The penalties aren’t worth it.
Conclusion
Vermont offers a huge opportunity for those looking to start a handyman business in the state.
In the dozens of regions I’ve researched, I’ve never encountered the level of liberty afforded to handymen in VT. There are no licenses or registration requirements to begin working, and handymen can take on certain electrical, plumbing, and structural work.
And for handymen who don’t want their aspirations capped at $10,000, high-yield work is available once they go through the exercise of registering as a General Contractor.
Do you offer handyman services in Vermont?
If so, I’d love to hear about your experience. Please leave a comment below to share any insights I may have missed.
