Part of: Handyman Business
To start a handyman business, first check your state's license rules, because they decide which jobs you can take: California requires a license for any job of $1,000 or more in labor and materials, and Oregon licenses handyman work itself. Then follow the SBA's launch steps: choose a structure, register, get a free EIN, open a business bank account and get insured.
This guide is part of our Handyman Business Growth hub. It covers the US only. Rules change by state and city, so check your own before your first paid job.
What are the steps to start a handyman business?
| Step | What to do | Source |
|---|---|---|
| 1 | Check state and city license rules | Your state board, the SBA |
| 2 | Choose a business structure | SBA |
| 3 | Register your name and business | SBA |
| 4 | Get a free EIN | IRS |
| 5 | Open a business bank account | SBA |
| 6 | Get insured | SBA |
| 7 | Check home business zoning | SBA |
| 8 | Set your prices | Your costs |
| 9 | Get found online |
The sections below walk through each step.
Do I need a license first?
Check before anything else. The SBA says the licenses and permits you need depend on your business and your location, and it lists construction among the activities commonly regulated at the local level. For a handyman, that means:
- State rules. California's CSLB requires a license for jobs of $1,000 or more in labor and materials, jobs that need a permit, or jobs that use other workers. Oregon's CCB requires a license for handyman work.
- City or county rules. Your city or county may require a general business license even when the state does not license your work.
Our handyman license guide compares California, Florida, Oregon and Texas.
Should I be a sole proprietor or an LLC?
The SBA's structure guide says a sole proprietorship is easy to form but leaves you personally liable for the business's debts. An LLC protects your personal assets in most instances, and its members pay self-employment tax. Ask an accountant or attorney which fits your situation.
How do I register and get an EIN?
- Register. The SBA says most businesses register with their state, usually through the Secretary of State, and that fees are usually under $300. If you work under a name that is not your own, you may need a DBA, or "doing business as" name.
- Get an EIN. The IRS issues employer identification numbers free. The SBA says you need one to hire, open a bank account and apply for licenses, and warns to avoid websites that charge a fee.
- Open a business bank account. The SBA says to do this once you have your EIN, so job income and costs stay separate.
What insurance do I need to start?
The SBA says general liability insurance protects any business against losses from bodily injury, property damage, medical expenses and lawsuits, which fits work done inside other people's homes. It also says businesses with employees must carry workers' compensation, unemployment and disability insurance, and that rules vary by state. Ask a licensed agent what your state requires.
Can I run it from home?
Often, but check first. The SBA notes that local zoning rules can apply to home-based businesses. Ask your city's planning or zoning office before you park a work trailer or store materials at home.
How do I set my prices?
Price from your costs, not a guess. Add up what you need to earn, plus tools, insurance, gas and self-employment tax, then compare with what customers pay locally. Our guide on how much to charge for handyman work walks through an hourly rate, a trip fee and a minimum charge.
How do customers find a new handyman?
Two places to start:
- A Google Business Profile. Google's sign-up page lets a business with no storefront hide its address and list up to 20 service areas. Customers can find the profile only after it is verified.
- A simple website. List your jobs, your service area and how to reach you. Our handyman website guide shows what each page needs.
Then ask every happy customer for a review. Our guide on how to grow a handyman business covers what comes next.
How Momyntum helps
Get your free website check to see what to fix first, or start a 14-day trial of Momyntum for help with your website, Google and AI search, and outreach.
Sources
Questions
Do I need a license to start a handyman business?
It depends on your state and the size of the job. California's CSLB requires a license for jobs of $1,000 or more in labor and materials, or any job that needs a permit, while Oregon's CCB lists handyman work as work that needs a license.
Can I start a handyman business with no experience?
Licensing boards care about the work you take, not where you learned it. Start with small jobs your state lets you do without a license, keep notes and photos, and add harder work as your skills grow.
Do I need an LLC to be a handyman?
No. The SBA says a sole proprietorship is the simplest structure but leaves you personally liable for business debts, while an LLC protects your personal assets in most cases. Talk to an accountant or attorney about which fits you.
How much does an EIN cost?
Nothing. The IRS issues EINs free, and the SBA warns to avoid websites that charge a fee for one.
By Momyntum Team. Updated November 1, 2026. For: Handyman.
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