How to Start a Handyman Business in California (2025 Guide)

Article author Ben Lawless
Ben Lawless
|
May 14, 2025

How to Start a Handyman Business in California (2025 Guide)

Thinking about starting a handyman business in California? You’re not alone — demand for home repairs, renovations, and maintenance is booming across the state. Whether you're great at fixing things, installing hardware, or tackling small renovation jobs, turning that skill into a business is a smart move.

Here’s how to do it right — legally, efficiently, and with an eye toward long-term success.

1. Understand California’s Handyman License Rules

In California, the Contractors State License Board (CSLB) regulates construction and home improvement work — and if you’re planning to work as a handyman, it’s crucial to know what kind of jobs you can legally take on without a license.

As of January 1, 2025, a new law — AB 2622 — increased the limit for unlicensed work to $1,000 total per project (including both labor and materials). That means:

If the total value of the job is $1,000 or less, you can legally operate as an unlicensed handyman.

But anything above that — even by a few dollars — requires a contractor’s license issued by the CSLB.

This rule is often referred to as the California home improvement unlicensed contractor limit or unlicensed contractor threshold, and it's a key legal boundary for anyone starting a handyman business in the state.

If you plan to take on bigger jobs, get permits, or hire workers, you’ll need to go the licensed contractor route. You can learn more about that process here.

2. Get Your Business Registered

Once you know the legal limits, make it official:

  • Pick a Business Name – Check availability with the California Secretary of State.
  • Choose a Business Structure – Sole proprietor, LLC, or S-corp. Many handymen start as sole proprietors, but an LLC offers liability protection.
  • Apply for an EIN – Get one free from the IRS website.
  • File a DBA – If using a business name that isn’t your own, file a “Doing Business As” (DBA) with your county.

3. Business License & Insurance

  • Local Business License – Required in most cities or counties.
  • General Liability Insurance – Protects you from lawsuits or damages.
  • Bonding – Required if you’re licensed as a contractor.

You can check local license requirements through your city’s or county’s official website (or give them a quick call).

4. Get a Contractor License (Optional, but Opens Doors)

Want to work on larger projects? Then you’ll need a California contractor license. Here's what it takes:

  • At least 4 years of experience in the trade.
  • Pass two exams – Law & Business + your specific trade.
  • Undergo fingerprinting and a background check.
  • Submit a $25,000 contractor bond.

More info: CSLB Licensing Info

5. Set Up Banking and Payments

Separate your personal and business finances:

  • Open a business bank account.
  • Consider payment platforms like Square, Stripe, or QuickBooks to take card payments from clients.

6. Marketing: Get Found and Booked

Once you're legal and ready to roll, you’ll need customers — and they’re all online.

Why You Need a Website

A clean, fast website builds trust and helps customers find you on Google. Whether they’re searching for “handyman near me” or checking out your past work, your site is your storefront.

Here’s what a good handyman website should include:

  • Your services (be specific!)
  • Photos of your past jobs
  • Easy contact form or booking system
  • Google Maps integration for local SEO

If you're serious about growing your business, it’s not enough to rely on word of mouth.

We Can Help You Build That

At Lawless Digital Marketing, we specialize in websites that actually get found. We design and develop websites for local businesses who want to:

  • Grow traffic
  • Show up on Google
  • Turn clicks into customers

Want to learn more? Check out our web design services or request a free consultation to get started.