Handyman businesses are a great way to put yourself out there, learn a trade, and make some money in the process. While the work can be challenging, there is a lot of freedom that comes with handyman work. You can set your own schedule, and choose who you work with, and you don't have to answer to a boss.
While many people begin their handyman business career as a freelancer or independent contractor, you can grow it into a larger opportunity. When you take the right steps, you can take bigger projects even hire employees as your operations expand.
That said, learning how to start a handyman business in Virginia the right way is essential. You need to have the appropriate licenses, come up with a business plan, and start marketing your services. What's more, there are licenses and laws you need to follow if you want to start a handyman business.
In this article, we’ll go over how to start your business, as well as the specific handyman laws in Virginia. This way, you’ll have everything you need to start a safe, legal, successful handyman business – so let’s get started!
How to Start a Handyman Business in Virginia: Everything You Need to Know
Step 1: The Planning Phase
Step 2: Form an LLC
Step 3: Choose a Registered Agent in Virginia
Step 4: Apply for the Appropriate Business License
Step 5: Get Insured
Contents
Thinking about starting an LLC in Virginia? We’ve got all the details you need.
Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the Virginia State Corporation Commission, which includes a $100 processing fee.
You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized Virginia LLC formation service (recommended).
Zenbusiness (Starting at $0 Plus State Fees)
What Is a Handyman Business?
A handyman business is a type of business that involves an individual working on small projects in someone’s residential home. Typically, these types of jobs pertain to maintaining the home or fixing things that are broken. In most cases, the jobs are small because they come from individuals.
Handyman work can sometimes extend beyond personal property. For example, some rental properties may have a handyman that comes around to fix problems. Most handyman businesses are small businesses that are owned and operated by a single person. However, these businesses can expand.
What Type of Work Can a Handyman Do Legally in Virginia?
A handyman can do a lot of work legally in Virginia. Typically, a handyman business takes care of small things around the house that homeowners can’t do on their own. Some examples of handyman work include:
- Laying concrete
- Paving a driveway
- Small carpentry jobs
- Installing pipes
- Installing boilers
- Small roofing jobs
- Drywall and sheetrock
- Installing electronics
- Repairing electronics
- Installing cabinets
Ultimately, a handyman is someone who fixes or helps you install things around your home.
Do You Need a License to Be a Handyman in Virginia?
Yes and no. If you’re working on a job that pays less than $1,000 you don’t need a business license to become a handyman. However, if you plan on working on larger projects you need a Virginia contractor’s license from the Department of Virginia Business Services.
There are three license types that you can choose from depending on the type of work you plan on doing. Therefore, whether you’re an independent contractor or plan on hiring employees you need a contractor’s license in Virginia to start a handyman business.
Types of Handyman Licenses in Virginia
Handyman licenses in Virginia come in their classes, all of which are handled by the Virginia Department of Professional and Occupational Regulation. These licenses are the Class A, Class B, and Class C contractor licenses. More about each license is found below.
- Class A: Required for jobs that are valued at $120,000 or more.
- Class B: Required for jobs that are valued between $10,000 and $119,999
- Class C: Required for jobs that are valued at $1,000 to $9,999.
Another thing to note is that with the Class C license, you can’t make more than $150,000 in a single year with your projects. Once your business grows to this point, you’ll need to get a Class B or Class A license.
What Are the Requirements for a Contractors License in Virginia?
Unlike other business licenses in Virginia, not everyone can apply for a contractor’s license unless they meet the necessary criteria. The requirements for each license can be different, so it’s important to consider the unique criteria for each license.
For the purpose of this article, we’ll focus on how to get a Class C Contractors license in VA because it’s the first one most handyman businesses will need to get off the ground.
Legally, before you apply for a license, you need to meet these requirements:
- At least two years of technical experience; you can get this by working with a handyman or going to a two-year technology school.
- An 8-hour pre-license class that you need to pass.
- Pass the contractor exam.
- Submit your contractor license application to the Department of Professional Occupational Regulation.
Once you meet the requirements we covered, you can apply for your license.
How Much Does a Contractor License Cost in Virginia?
The cost of a business license in Virginia varies based on the type of license that you’re applying for.
For example, the Class C Contractor license costs $235 and you have to pay $195 each year to renew the license. You may also have to pay a fee to reinstate this license if you end up letting it lapse.
For the other types of licenses, make sure you look into the cost because it can fluctuate depending on how profitable your handyman business is.
How to Start a Handyman Business in Virginia
Handyman businesses can be started in a few ways, but we always recommend going the LLC route for the most protection. From there, it’s a good idea to obtain the necessary insurance, licenses, and equipment that you need to serve your clients.
You also need to consider some of the other things you might need to start a handyman business in Virginia, like a vehicle and tools.
Follow the steps below for a detailed roadmap that will show you how to start a handyman business in Virginia.
Step 1: The Planning Phase
The first thing you need to do when starting a handyman business is to develop a business plan. Every business needs a plan because it can help you structure your company, develop marketing ideas, and even help you come up with revenue projections.
You’ll also need a business plan to file the necessary paperwork, obtain licenses, and get your handyman business off the ground.
A business plan isn’t hard to make, but you do have to do some writing and provide some information about your company. In a business plan for a handyman business, make sure you include the following:
- The structure of the company
- Names of the owners, workers, and any registered agents
- Executive summary
- Name of the company
- Marketing plans
- The type of handyman work you do
- Where you provide your services
- Revenue projections
Aside from this information, you should include anything that can help you come up with a solid plan for your company’s success.
Step 2. Form an LLC
When you’re starting a handyman business in Virginia, you need to start a limited liability company (LLC). While you can form a DBA or a sole proprietorship, it’s important to go the LLC route because of the liability you take on when working in someone’s home. For example, what happens if you damage a pipe or break a wall?
Unfortunately, homeowners can sue you for these problems, and your insurance might not always cover the cost. For this reason, forming an LLC will help you avoid these liabilities and risks.
Step 3: Choose a Registered Agent in Virginia
If you’ve chosen to establish your business as an LLC or corporation in Virginia, your next step is to appoint a registered agent. This is a mandatory step when preparing your Articles of Organization, the document required to officially file and register your LLC or corporation with the State Corporation Commission.
But what exactly does a registered agent do? A registered agent is an individual or business entity assigned to receive important documents on behalf of your business, including tax forms, legal notices, lawsuits, and official government correspondence. Essentially, your registered agent serves as your business’s primary contact with the state.
Who can act as a registered agent? The registered agent must be a Virginia resident or a corporation authorized to conduct business in the state, such as a registered agent service. If you choose to be your own registered agent, you’ll need to designate an individual within your company, as Virginia law doesn’t permit business entities to serve as their own registered agents.
For more detailed information on the requirements for registered agents in Virginia, refer to Chapter 12, Article 3 of the Code of Virginia.
Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).
Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.
Step 4: Apply for the Appropriate Business License
Legally, you don’t always need a license to be a handyman in Virginia, but we recommend getting one. This is because you’ll need a license if you plan on doing work that pays more than $1,000. If you never plan on doing this type of work or only want to take on the occasional odd job, then you can skip this step and move to the next one.
To apply for a contractor license, follow the steps below.
- Make sure you have registered your business entity. As we mentioned previously, an LLC is best for a handyman business.
- Register the name of your business with the Virginia State Corporation Commission.
- Identify other employees and mention people who will manage the workers if it’s not just you.
- Complete and fill out the contractor license application for the specific type of license that you need.
- Renew your business license every two years.
You also need to complete continued education to renew your license. You need about three hours per year.
Step 5: Get Insured
Every handyman business in Virginia should have insurance. Having insurance for your business will protect you in case of any problems, and it will also give homeowners more confidence in your business. So, a handyman should always be insured and it’s worth the extra money to avoid any complications or legal problems.
Insurance for your business will vary based on the type of work you do and the number of employees you have.
Handyman Business in Virginia FAQ
Questions about how to start a handyman business in Virginia? We have answers below.
How Much Work Can You Do Without a Contractor License in Virginia?
You don’t always need a license to be a handyman in Virginia. Legally, you can work on projects that cost less than $1,000 without having a handyman license. Once you start quoting people at more than this value, it’s time to apply for a license, according to the handyman laws in Virginia.
What Happens if a Handyman Business License Expires?
It’s illegal to work under a handyman license that has expired. In fact, it’s a misdemeanor crime that can get you hit with hefty legal fines aside from the hefty fee to reinstate your license. You can check to see the status of your contractor license online, so make sure you keep an eye on your license and renew it every two years.
Can You Work as a Handyman With a License From Another State in Virginia?
No, you can’t work as a handyman in Virginia unless you have a Virginia contractor license. The good news is that you should meet the requirements to apply for a license if you already have one in a different state.
Unfortunately, Virginia doesn’t allow reciprocity for contractor licenses, and working without one on large projects can result in you getting hit with hefty fees.
Start a Handyman Business Today
Handyman work is flexible, rewarding, and profitable. Plus, the only overhead you need to get started are the tools you purchase and the vehicle you use for transportation. This makes it one of the most affordable businesses to start in Virginia, and the pay rate is great because you can change it to suit your needs.
While most handyman businesses start off small, you can scale them as you grow your customer base to meet your goals. In fact, if you have the skills, you can even start a handyman business in your spare time.