The first thing to understand when figuring out if you need a license to perform handyman work is knowing that license requirements are different from state to state, and even from city to city. For example, the state of New York does not require a license, but you will need a Home Improvement Contractor license if working in New York City. It's very important that you check with the city and state where you will be practicing to get a clear picture of what you legally can and can't do.
In some cases, you may not need a license to practice but will need to register with a certain organization to legally operate. This is the case in Nebraska, where you don't need a state license but do have to register with the Nebraska Department of Labor. Most often, licensing requirements in specific states and cities are linked with the type of work you'll be doing as well as the size and value of the job.
What Type of Work Do You Do?
The value you bring as a handyman is that you can do a little bit of everything, so it may seem beside the point to talk about what kind of work you do. However, this is a relevant question when it comes to determining license requirements. The state of Florida, for example, generally allows you to do carpentry or minor repairs without a license but will require one if you're doing any kind of structural work.
Most states will not allow you to do electrical, plumbing, or HVAC work unless you have a trade-specific license in those fields. This obviously raises a question about minor things like replacing an outlet; does this require a full electrician's license? Or do you need a plumbing license to replace a faucet? The answers to these questions will, again, vary by state and city, so you'll want to check on local requirements to avoid being penalized.
Project Size Matters for License Requirements
In addition to the type of work you do, many states and cities have specific requirements about the size or dollar value of a job you are allowed to do without a license. California, for instance, has a low limit that only allows you to work on jobs valued up to $500. This figure refers to the total value of the job, and not just the part that you might get paid for as part of a larger project.
In most states, the job value limitation includes the price of materials. This means that in California, a job that costs $300 in materials and $300 in labor would require a license, as the total value of $600 surpasses the state limit of $500. Keep in mind that this limit can be much different in other states and cities. Louisiana, for instance, allows you to work on jobs valued up to $7,500 without a license.
How Do You Get a License for Handyman Work?
With so many different requirements and limitations, you may be wondering how hard it is to simply obtain a license and not have to worry about these things. The general requirements are that you must be over the age of 18 and legally eligible to work in the U.S. Beyond these, there are some other requirements that will vary depending on where you live and work.
Some cities and states will require that you already have a certain amount of training, and others will ask you to pass an exam that includes questions like which jobs you can and can't perform. You'll need to submit certain documents as well, such as:
- Your business license application
- Proof of business address
- Proof of insurance
- A license application fee
Check with your local licensing board to find out which of these requirements apply to you.
General Liability Insurance
Doing any handyman work carries a certain amount of risk, so it's highly advisable to have a general liability insurance policy to protect yourself against injury and potential lawsuits. There are multiple reasons to carry liability insurance, and this applies whether you decide to practice with or without a license.
General liability insurance will cover you if a job you performed somehow ends up causing third-party bodily injury or property damage. This would apply if, for instance, you work on a deck that ends up cracking under a client's weight and causes either injury or property damage. If the client decides to hold you liable, your insurance policy will cover costs and help defend you in court if the case ends up going to trial.
Do You Also Need a General Contractor License?
Since there is a good deal of overlap between what handymen and general contractors do, you may be wondering if you'll need a general contractor license at some point. In broad terms, a handyman can perform small jobs that only require a single person and are relatively inexpensive. Anything beyond these types of jobs tends to be governed by city and state laws and may require a general contractor license.
Obtaining a general contractor license will allow you to legally accept a wider range of jobs, but there are additional benefits to consider as well. A contractor license allows you to act as and hire subcontractors, which further expands the scope of projects you can take on. It also allows you to legally promote your business through advertisement, which can obviously help grow your business significantly.
These are the main factors that handymen should consider when determining whether or not they need a license. Contact ServiceBox today to learn more about how to maximize the potential of your business.
