How to Start a Handyman Business in Michigan

Business Registration, Business Startup

How to Start a Handyman Business in Michigan: The Complete Guide

Michigan has a unique approach to handyman work. Unlike states with a flat dollar-amount threshold (like $500 or $1,000), Michigan defines the line between a “handyman” and a “licensed contractor” based on the specific type of work being performed.

As of 2026, the Michigan Department of Licensing and Regulatory Affairs (LARA) continues to strictly enforce these distinctions.

1. The “Handyman” vs. “Residential Maintenance” Divide

In Michigan, there is no “Handyman License.” You either operate as an unlicensed handyman or a licensed Residential Maintenance and Alteration (M&A) Contractor.

  • The Handyman (Unlicensed): You can perform “minor” tasks that do not require a permit and are not part of a larger structural project. This includes:

    • Interior/exterior painting and wallpapering.

    • Installing flooring (tile, laminate, carpet).

    • Replacing window glass or screens (but not the frame).

    • Clearing gutters and pressure washing.

    • Cabinet and trim installation.

  • The M&A Contractor (Licensed): If you perform work in specific trades like Carpentry, Roofing, Siding, or Basement Waterproofing, or if the job requires a building permit, you must have an M&A license—even if the job is small.

2. Requirements for the M&A License

If you want to go beyond basic cosmetic repairs, you must apply for a license from the Michigan Occupational Code.

  • Pre-Licensure Education: You must complete 60 hours of approved pre-licensure education.

  • The Exam: You must pass the Michigan Residential Maintenance & Alteration Contractor Exam.

  • Fees: The application and license fee typically totals around $195.

3. Business Registration & “LARA”

  • Entity Formation: You should register your business (LLC or Sole Proprietorship) with the Michigan Department of Licensing and Regulatory Affairs (LARA). Filing an LLC costs approximately $50.

  • DBA (Doing Business As): If you are a sole proprietor and don’t want to use your own name, you must file a “Certificate of Persons Conducting Business Under Assumed Name” at the County Clerk’s office in the county where you operate.

  • Sales Tax: You must register for Michigan Sales Tax if you sell materials. While labor for “repairing” real property is often not taxable in Michigan, “improving” property can have different tax implications.

4. Mandatory Insurance & Workers’ Comp (2026)

  • General Liability: While Michigan doesn’t mandate liability insurance for unlicensed handymen, it is a requirement for licensed contractors. Regardless of your status, a $1,000,000 policy is the professional standard.

  • Workers’ Compensation: In Michigan, if you have one or more employees (including part-time or family members), you are legally required to carry Workers’ Comp insurance. The state is very active in auditing “1099” relationships to ensure they aren’t actually employees.

5. The “No-Go” Zones (State-Licensed Trades)

Michigan is very protective of its “Master” trades. A handyman cannot perform the following without a specific license from the Bureau of Construction Codes:

  • Electrical: You cannot run wire or install new fixtures into the electrical system.

  • Plumbing: You cannot alter or install plumbing lines.

  • Mechanical (HVAC): You cannot install or repair furnaces or A/C units.

  • Lead-Safe RRP: If you work on homes built before 1978 and disturb more than 6 sq. ft. of interior paint, you must be a Lead-Certified Renovator.

6. Local Rules: The “Detroit and Grand Rapids” Factor

Larger cities in Michigan often have their own registration requirements.

  • Detroit: The City of Detroit has specific business licensing requirements and may require an additional bond for contractors working within city limits.

  • Permits: Even if you are a “handyman,” if you are building a deck or a structural fence, you must ensure a permit is pulled. In many Michigan jurisdictions, only a licensed contractor (or the homeowner) can pull a structural permit.

7. Marketing and Consumer Protection

  • The “Licensed and Insured” Claim: In Michigan, it is a violation of the Consumer Protection Act to claim you are “licensed” if you only have a local business registration. You must hold the state M&A or Residential Builder license to use that term.

  • Contracts: Michigan law encourages written contracts for all home improvements. Include your business name, a detailed scope of work, and the total cost to protect yourself from payment disputes.