Usually a general business license, if your city or county requires one; rules on which jobs need a contractor or trade license differ a lot by location, so ProfitDrawer's handyman guide says to check with your city, county and state before you quote any job. One federal rule applies everywhere: paid work that disturbs paint in homes, child care facilities and preschools built before 1978 falls under EPA's lead paint rule, and the firm, even a sole proprietorship, must be certified by EPA or an EPA-authorized state or Tribal program.
Why it varies: the SBA explains that licenses can come from federal, state and local agencies. States regulate a broader range of activities than the federal government, and counties and cities often license activities such as construction and plumbing.
Checklist from the guide:
- Ask your city and county about a general business license, and ask which jobs need a contractor or trade license.
- Register your business name (a DBA) if you trade under a name other than your own.
- Pick a structure: sole proprietor, or an LLC with a state filing fee.
- Get an EIN if you hire or form a partnership or corporation. It costs $0 on irs.gov.
- Get general liability insurance, since you work in other people's homes, and workers' compensation if you hire in most states.
- Follow the EPA lead rule. The Renovation, Repair and Painting rule covers paid work that disturbs paint in pre-1978 homes, child care facilities and preschools. EPA says certification covers all firms, "even sole proprietorships."
Do not guess on electrical, plumbing or structural work: ask your local licensing office first. General information, not legal advice.
Source: Apply for licenses and permits (U.S. Small Business Administration) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.