How to Start a Handyman Business in 2026

The handyman business has a reputation as something people fall into when they can't find other work. That reputation is wrong, and it costs people money.

A well-run handyman operation is one of the most flexible and profitable small businesses you can start. You don't need a master license. Startup costs are low. And the demand is enormous because most homeowners can't (or won't) do their own repairs.

The catch: because anyone can call themselves a handyman, the market is full of unreliable people who show up late, do sloppy work, and disappear. If you run a legitimate business, answer your phone, and do clean work, you're already in the top 20%.

Licensing (it depends on your state)

Handyman licensing is a patchwork across the US. There's no national standard, and the rules vary not just by state but sometimes by city.

The general framework:

• Most states don't require a handyman-specific license for small jobs. You just need a general business license.
• Almost every state caps the dollar amount of work a handyman can do without a contractor's license. Common limits are $500 to $1,500 per job (California is $500, Texas has no explicit limit but restricts the scope of work).
• You cannot do licensed trade work without the appropriate license. That means no electrical panel work, no plumbing beyond simple fixture swaps, no HVAC, no structural modifications. The line varies by state, so look up your specific state's rules.

At minimum you need: a general business license ($50 to $300), and possibly a home improvement contractor registration (required in states like Connecticut, Maryland, and Virginia). Total licensing cost: $100 to $500.

One piece of advice: even though you might not legally need a contractor's license, getting a handyman endorsement or limited contractor license (available in some states) gives you credibility and lets you take on bigger jobs.

Business formation

LLC. Always. A handyman working in people's homes has real liability exposure. You're drilling into walls, mounting TVs, working on ladders. If something goes wrong, an LLC keeps your personal assets out of it.

Cost: $50 to $500 for the LLC, plus $0 for the EIN from the IRS. Open a business bank account, get a business credit card, and you're set up properly.

Insurance

Handyman insurance is cheaper than the licensed trades, but you still need it.

• General liability ($1M/$2M). $500 to $1,500/year for a solo handyman. This covers you if you accidentally damage a customer's property or if someone trips over your tools.
• Commercial auto. $1,000 to $2,500/year if you're using a vehicle for work.
• Tools and equipment floater. $200 to $500/year. Covers theft or damage to your tools.

Workers' comp isn't required if you're solo in most states, but add it ($1,500 to $3,000/year) once you hire anyone. Total solo insurance: $1,700 to $4,500/year.

Tools and equipment

Most experienced handymen already own the majority of what they need. Here's the full kit for someone starting from a reasonable base:

Item	Cost range
Reliable vehicle (already owned or used truck/van)	$0 - $20,000
Cordless drill/driver set (DeWalt, Milwaukee, or Makita)	$200 - $500
Circular saw, jigsaw, oscillating multi-tool	$300 - $600
Basic plumbing tools (basin wrench, pipe wrench, plunger)	$100 - $250
Drywall tools (knives, mud pan, sanding block)	$50 - $150
Painting supplies (brushes, rollers, tape, drop cloths)	$100 - $200
Ladder (6-ft step + extension ladder)	$200 - $500
Hand tools (hammers, levels, tape measures, pliers, etc.)	$300 - $800
Stud finder, voltage tester, laser level	$100 - $300

Total if buying everything new: $1,350 to $3,300 (excluding vehicle). If you already have a truck and basic tools, you can realistically start for under $1,000 out of pocket. That's why handyman businesses are popular with people making a career change: the startup cost is manageable.

Pricing your services

Handyman pricing is all over the place, which is both a problem and an opportunity. The guy charging $35/hour is booked solid but barely making money after expenses. The company charging $150/hour has a hard time filling the schedule. You need to find where your market lands.

In 2026, most professional handymen in mid-size to large markets are billing $60 to $100/hour, or using flat-rate pricing for common jobs:

• TV mounting: $100 to $200
• Faucet replacement: $125 to $225 (plus fixture)
• Drywall patch and paint: $100 to $250 per patch
• Door installation (interior): $150 to $300
• Ceiling fan installation: $100 to $200
• General repairs (minimum charge): $75 to $150 for the first hour

A minimum charge is non-negotiable. You can't drive 30 minutes, spend 15 minutes tightening a loose doorknob, and charge $25. Your minimum should cover at least one hour of your time plus drive time.

Check our contractor rate data to see what handymen and general maintenance workers earn in your area. Our handyman rate guide by state also breaks this down in detail.

Getting customers

Handyman businesses live and die on repeat customers and referrals. Your goal isn't to find 200 customers who call you once. It's to find 40 to 50 homeowners who call you 3 to 4 times a year.

• Google Business Profile. Set it up, add photos of completed work, collect reviews after every job. "Handyman near me" has enormous search volume.
• Nextdoor. This is probably the single best platform for handyman businesses. Homeowners ask for handyman recommendations on Nextdoor constantly. Be active, be helpful, and the work follows.
• Property managers. A property manager with 50 rental units needs a handyman on speed dial. Turnover repairs, maintenance calls, and small fixes add up to steady work. The per-job rate is sometimes lower, but the volume is consistent.
• Senior communities. Older homeowners need more help with maintenance and repairs. They also tend to be loyal, reliable customers who pay on time and refer their friends.
• Business cards everywhere. Hardware stores, coffee shops, community boards. Old school, but handyman work is fundamentally local. One business card on a Starbucks bulletin board can generate a $500 customer.

Scaling without employees

Many handymen deliberately stay solo. No employees means no workers' comp, no payroll, no management headaches. A solo handyman working 40 billable hours/week at $75/hour grosses $156,000/year. After expenses (vehicle, insurance, tools, materials, taxes), take-home is $80,000 to $110,000.

That's a solid living with complete schedule flexibility. You work when you want, take the jobs you want, and answer to nobody.

If you do want to grow, the first hire should be another handyman (1099 subcontractor if your state allows it, or W-2 employee). Don't hire until you're consistently turning away work because your schedule is full. That usually happens 8 to 12 months in if you're marketing well.

Mistakes to avoid

• Doing work outside your legal scope. If your state says handymen can't do electrical work beyond changing fixtures, don't do it. The liability exposure isn't worth the $150 you'd earn.
• Not having a minimum charge. Every call should have a minimum. Otherwise you'll end up losing money on small jobs once you factor in drive time.
• Undercharging because "it's just handyman work." You're providing a real service that people are willing to pay for. Charge what your time is worth.
• No before/after photos. Take photos of every job. They're content for your Google profile, social media, and marketing. Five minutes of photos can generate thousands in future work.

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