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How to Start a Handyman Business

What it takes to legally start a handyman business in the US — licensing, structure, EIN, taxes, insurance, and your first customers. The steps are the same everywhere; the forms and fees depend on your state, so pick yours below for the exact links.

Typical startup cost
$1,500–$8,000
Licensing
state + local — varies
Best structure
LLC for most
First customers
referrals + local search

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  1. Check the licensing for handyman work

    Most states cap unlicensed handyman work at a per-job dollar amount (often $500–$1,000) and prohibit electrical, plumbing, and structural work without the specialty license. This is the part that varies most by state — some require a state license or registration before you can advertise, others leave it to the city or county. Confirm both your state board and your local government before you take a job.

  2. Decide what the business needs to open

    Small home repairs and improvements — the jobs too small for a specialty contractor. The setup areas that usually matter for a handyman business: Handyman/contractor registration and dollar cap, Liability insurance, Truck and a broad tool kit, Hourly vs. flat pricing, Scheduling. Typical cost to get operational: $1,500–$8,000.

  3. Pick a structure — sole proprietor or LLC

    You can start as a sole proprietor with no filing, or form an LLC (usually $50–$300 depending on your state) for liability protection. For hands-on trade work where something can go wrong on a customer's property, most owners choose the LLC.

    LLC filing fee and steps by state ↗

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  4. Get a free EIN from the IRS

    An Employer Identification Number is free and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  5. Register for state taxes and get insurance

    Register with your state's tax agency if you'll collect sales tax, then line up general liability insurance — most contracts and license boards require proof of coverage.

  6. What handyman businesses charge

    Hourly ($60–$110) with a 1–2 hour minimum, or flat-rate for common jobs (TV mount $120–$200, faucet swap $150–$250, drywall patch $150–$350). Half-day and full-day rates for punch lists. Steady and broad — the jobs too small for a specialty contractor to bother with. Property managers, real-estate agents prepping listings, and older homeowners become repeat clients who call you for everything.

  7. Get your first handyman customers

    Nextdoor, TaskRabbit/Thumbtack, and referrals from property managers and realtors. Repeat customers are the model — become 'their guy.' Property managers and busy professionals are ideal recurring clients.

    Getting customers for a handyman business ↗

  8. The mistake most first-year handyman owners make

    Saying yes to jobs that legally require a licensed trade. Most states cap unlicensed work at $500–$1,000 per project and bar electrical, plumbing, gas, and structural work — one complaint or a failed inspection can end the business.

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Frequently asked

How do I start a handyman business?

Check the licenses for handyman work in your state, pick a structure (sole proprietor or LLC), get a free EIN from the IRS, register for state taxes, open a business bank account, get general liability insurance, then set up a Google Business Profile and line up your first jobs. The order and the exact forms depend on your state.

Do I need a license to start a handyman business?

Most states cap unlicensed handyman work at a per-job dollar amount (often $500–$1,000) and prohibit electrical, plumbing, and structural work without the specialty license.

How much does it cost to start a handyman business?

Plan for $1,500–$8,000 to get operational, plus $50–$300 if you form an LLC (varies by state). An EIN is free, and general liability insurance runs a few hundred dollars a year for most solo operators.

What should I charge for handyman?

Hourly ($60–$110) with a 1–2 hour minimum, or flat-rate for common jobs (TV mount $120–$200, faucet swap $150–$250, drywall patch $150–$350). Half-day and full-day rates for punch lists.

How much do handyman businesses make?

It depends on your rates, your utilization, and your area. See the income and pricing breakdown for a handyman business for typical owner take-home and what to charge.

How much does a handyman business license cost?

It depends on your state and exactly which license applies — a state professional license commonly runs $50–$300 plus any exam or renewal fee, and a local city/county business license is often another $25–$100. That's separate from the $50–$300 LLC filing fee if you form one. Use the License Finder tool with your state for the exact fee for handyman work.

How much does handyman business insurance cost?

General liability insurance for a solo handyman operator typically runs $300–$800 a year, more with commercial auto coverage or a higher liability limit. Most contracts, landlords, and license boards require proof of coverage before you can start.

Where do the first handyman customers come from?

Nextdoor, TaskRabbit/Thumbtack, and referrals from property managers and realtors.

Official sources

Fees and timelines are commonly-cited figures last reviewed September 2026 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center