Starting a handyman business is a smart way to earn consistent income if you’re good at fixing things and enjoy practical work. From quick repairs to light installations, many homeowners need help with tasks they can’t do themselves — and most of these jobs are too small for general contractors to bother with.
But knowing how to do the work is only part of it. Running your own business means handling licensing, pricing, insurance, marketing, and more. This complete guide walks you through each step so you can start your handyman business the right way.
1. What Does a Handyman Business Do?
Handyman businesses take care of basic repairs and maintenance around homes or small commercial properties. These are tasks most homeowners can’t or don’t want to do — but they’re also not large enough to justify hiring a general contractor.
You might fix a loose cabinet door one day and install a ceiling fan the next. Many jobs are quick, low-cost, and vary day to day.
2. Is a Handyman Business Right for You?
A handyman business can work well for people who:
- Enjoy working with their hands
- Prefer practical jobs over office work
- Want to set their own schedule
- Like solving everyday problems
- Want low start-up costs
It’s not for everyone, though. You’ll need to manage time well, stay organized, and communicate clearly with clients. You also need to follow legal and safety rules — even for small jobs.
3. What Services Should You Offer?
You don’t need to offer every repair or install service. Start with what you’re confident doing, and expand once you’ve built up experience and tools.
Here are common handyman services:
- Patching drywall and painting
- Hanging shelves or TVs
- Replacing door locks and handles
- Minor plumbing repairs
- Gutter cleaning and repair
- Fence and gate fixes
- Light fixture installation
- Furniture assembly
- Installing blinds or curtain rods
- Power washing patios or driveways
You can also take on basic carpentry or minor electrical jobs — just make sure you understand what’s allowed under your local state license to work.
4. Legal Requirements and Licensing
Many new handyman businesses run into trouble because they skip the legal part or assume a license isn’t required. But every city and state has its own rules, and you need to follow them to avoid fines or shutdowns.
Do You Need a Handyman Business License?
Most places require some kind of license, even if you’re only doing small jobs. That could mean a basic business license from your city or county, or a more specific handyman business license.
If you plan to offer work over a certain price or touch plumbing, electrical, or structural elements, you may need a general contractor license.
How Much Work Can You Do Without a License?
States have different limits. For example, in California, any construction project over $500 in labor and materials needs a contractor’s license.
It’s your job to research the rules. Visit your state’s licensing board website and check what jobs require:
- A state license to work
- A contractor’s license
- Insurance or bonding
Tip: If you’re adding walls, altering plumbing, or changing electrical systems, you likely need to be a licensed contractor. Stay on the safe side.
5. Handyman vs. General Contractor
A lot of people confuse these two — but the difference matters.
Handyman:
- Handles small jobs under the legal limit
- Usually works solo or with one helper
- Focuses on repairs and routine maintenance
- Doesn’t usually need a general contractor license
- Less paperwork and insurance required
General Contractor:
- Manages larger construction projects
- Coordinates subcontractors
- Needs a state license to work in most areas
- Works on long-term or structural jobs
- May need bonding and more insurance coverage
You can run a successful handyman business without becoming a contractor. Just know where the legal line is and avoid crossing it without proper licensing.
6. How to Register Your Handyman Business
Before you take your first paid job, make it official.
Here’s how to register your handyman business step-by-step:
- Choose a Business Name – Make it short, clear, and easy to remember.
- Pick a Business Structure – Most handymen choose:
- Sole proprietorship (simple, but no personal liability protection)
- Limited liability company (LLC) – Offers legal protection and separates your personal and business finances.
- Get an EIN – This free tax ID from the IRS lets you open bank accounts and file taxes.
- Apply for a Local Business License – Your city or county may require a permit.
- Open a Business Bank Account – Never mix business and personal funds.
Getting this right upfront helps you avoid penalties and makes your business look more professional.
7. Insurance: Don’t Skip It
Even small jobs can lead to big problems if something goes wrong. You could damage a customer’s property or get hurt on the job. That’s why insurance is essential — even if the law doesn’t force you to carry it.
Key policies you’ll need:
- General liability coverage – Pays for damages or injuries you cause while working.
- Tool and equipment insurance – Covers stolen or damaged gear.
- Worker’s compensation insurance – Required if you hire anyone, even part-time.
Some clients will ask to see proof of insurance before hiring you. It builds trust and protects you financially.
8. Tools and Equipment Checklist
You don’t need a massive tool collection to start. Buy what you need based on the jobs you’re taking.
Basic tools:
- Cordless drill
- Hammer
- Screwdriver set
- Adjustable wrench
- Level
- Stud finder
- Tape measure
- Caulking gun
- Ladder
- Tool belt or box
Extras to grow into:
- Power saws (circular or jigsaw)
- Shop vac
- Impact driver
- Pressure washer
- Safety gear (goggles, gloves, masks)
You’ll also need a reliable vehicle — a van or pickup truck works best to carry tools and materials safely.
9. How to Price Small Jobs
Set fair rates from the start. Don’t undercharge just to get work — that can make customers doubt your experience.
Common pricing models:
- Hourly rate – $40–$100 per hour depending on your area and skill level.
- Flat rate per task – One set price for things like installing a toilet or repairing drywall.
- Day rate – Best for full-day jobs or ongoing maintenance.
Also factor in travel time, material costs, and supply runs. Be clear with customers so there are no surprises.
10. Writing Professional Quotes and Invoices
Even if it’s a small job, always give a clear written quote. It protects both you and the client.
Include:
- Description of work
- Cost of materials
- Estimated time
- Total labor price
- Payment terms (e.g., due on completion)
- Expiration date for the quote
Send invoices promptly and follow up on late payments. Free tools like Wave, Invoice Simple, or Jobber can help you stay on top of your billing.
11. Promoting Your Business
To grow, people need to know you exist. You don’t need fancy ads — just show up where people are already looking.
Do this first:
- Create a Google Business Profile – Helps you appear in local searches and maps.
- Build a simple website – Just one page listing your services, contact info, and some photos.
- Use social media – Join local Facebook groups or post before-and-after shots of your work.
- Print business cards or flyers – Leave them with happy customers or at hardware stores.
Ask every satisfied client for a review. Positive word of mouth is your best marketing tool.
12. Staying Organized and Building Trust
Running a business means keeping your calendar, client list, payments, and tasks in order. You don’t need fancy software — just a reliable system.
Track:
- Scheduled jobs
- Customer info
- Payments received
- Tools and materials used
- Reminders for follow-ups
Customers appreciate fast replies, punctual service, and honest updates. That alone can set you apart from the competition.
13. How to Grow Your Reputation
Trust matters more than anything in this business. People are letting you into their homes — they want to feel safe.
Build a strong reputation by:
- Showing up on time
- Doing exactly what you promise
- Being honest about what you can and can’t do
- Keeping the work area clean
- Following up after the job is done
Offer a small discount for referrals or repeat customers. It encourages loyalty and spreads your name faster.
14. Expanding with Confidence
Once you’ve got regular clients, it might be time to take on bigger jobs or bring in help.
Consider:
- Hiring an assistant or part-time worker
- Partnering with licensed electricians or plumbers
- Training a helper to take on more tasks
If you hire anyone, make sure to carry worker’s compensation insurance and follow employment laws. As your business grows, consider if getting a general contractor license could open up new income opportunities.
15. Mistakes That Can Cost You
Avoid these common errors:
- Working without proper licensing or insurance
- Taking on jobs you’re not trained for
- Quoting without seeing the site first
- Overbooking or missing appointments
- Ignoring bad reviews or unhappy clients
Every mistake is a learning chance — but staying organized, legal, and honest helps avoid most of them.
Starting a handyman business isn’t just about fixing things — it’s about building trust, doing honest work, and running a business that lasts. Whether you’re helping with small jobs or prepping for bigger construction projects, there’s real opportunity in this field.
Take the time to register your handyman business, stay insured, set fair prices, and treat every client like they matter. That’s how you stand out.
Want more no-nonsense tips on business licenses, general contractor rules, and growing your handyman business? Check out Handy Hometown for articles that actually help. l content!