How to start a handyman business: a checklist

By PlainJob · Updated October 13, 2026 · 8 min read

Short answer: pick the services you'll offer, check your state and city licensing rules, register the business and get an EIN, buy general liability insurance, open a separate bank account, set your prices, then get set up to quote and invoice and start asking everyone you know for work. You can do most of it in a week or two.

This is general information to help you plan, not legal, tax or insurance advice. Rules differ by state and city, so check with the agencies we link to and talk to an accountant about your situation.

1. Decide what you'll do (and won't)

Write down the jobs you're good at and like doing: drywall, doors, trim, painting, TV mounting, assembly, small carpentry, punch lists. Then write down what you'll turn away. In most states, electrical, plumbing and HVAC work beyond simple swaps needs a licensed trade, so those usually go on the "no" list unless you hold that license.

2. Check the licensing rules where you'll work

Look up your state's dollar limit and trade rules in our handyman license guide, then check your city and county. Some, like New York City, have their own license for even small jobs.

3. Register the business

• Pick a structure. Many handymen start as a sole proprietor, and some form an LLC to separate business and personal liability. An accountant or attorney can tell you which fits.
• Register your business name with your state or county if you'll work under a name other than your own.
• Get an EIN. An Employer Identification Number from the IRS is free and takes minutes at irs.gov. Avoid sites that charge for it.
• Check for a local business license with your city or county.

4. Get insured

General liability insurance covers you if you damage a customer's property or someone gets hurt. Many customers, property managers and some cities will ask to see proof before you start. If you hire help, your state will usually require workers' compensation insurance. Get quotes from a few insurers who cover contractors.

5. Separate your money

Open a business checking account and run every job's payment and every material purchase through it. It makes taxes far easier and keeps you honest about what the business actually makes.

6. Set your prices

Work out the hourly rate that covers your pay, taxes and costs before you quote anyone. Our guide to pricing handyman jobs shows the formula and when to charge flat rates instead.

7. Get set up to quote, schedule and invoice

Customers judge you on how fast and clear your quote is. Have a way to send a clean quote the same day, keep track of who said yes, and invoice when the job is done. See how to write an estimate and what to put on an invoice, or start with the free quote maker.

8. Get your first customers

• Tell everyone. Friends, family, neighbors and past coworkers are where most handymen get their first jobs.
• Set up a free Google Business Profile as a service-area business, so you show up when people search "handyman near me."
• Post on Nextdoor and local Facebook groups, and follow each group's rules about advertising.
• Ask every happy customer for a review. Here's how to do it the right way.
• Leave cards with property managers and real estate agents, who always need small repairs done.

9. Keep up with taxes

When you work for yourself, nobody withholds taxes from your pay. The IRS generally expects self-employed people to pay estimated tax four times a year if they expect to owe $1,000 or more. Set aside a share of every payment, keep your receipts, and talk to an accountant before your first quarterly payment is due. The IRS's Self-Employed Tax Center explains the basics.

The checklist

1. List the services you'll offer and the ones you'll turn away
2. Check state, city and county licensing
3. Choose a business structure and register your name
4. Get a free EIN from the IRS
5. Get a local business license if required
6. Buy general liability insurance
7. Open a business bank account
8. Set your hourly rate and minimum charge
9. Set up quoting and invoicing
10. Create a Google Business Profile and tell everyone you know
11. Set aside money for quarterly taxes

Questions

More guides

• Do you need a license to be a handyman? Rules by stateDollar limits, trade work and local rules, state by state.
• How to price handyman jobs: hourly, flat rate, or bothHourly, flat rate or both, and how to set each one.
• How to write a handyman estimate that gets a yesWhat to include, what to leave out, and when to follow up.
• What to put on a handyman invoice (and when to send it)Payment terms, deposits, and what to do when it's late.