The demand for skilled handyman services is on the rise across Georgia’s growing communities. For those with a knack for repairs and maintenance, this presents a significant opportunity to build a valuable business. Launching a handyman service may seem daunting, but it is an achievable goal. This guide provides a step-by-step path to legally establish and operate a successful handyman business within the state.
Understanding Georgia’s Handyman Exemption
Georgia does not offer a specific “handyman license,” which simplifies the entry process for many small repair and maintenance jobs. Instead, the state operates under what is known as the “handyman exemption.” This rule allows individuals to perform work on single projects without a state-issued contractor license, provided the total value of the project, including all labor and materials, remains under a specific amount.
The financial threshold for this exemption is $2,500. This limit is defined in the Official Code of Georgia Annotated (O.C.G.A.) Section 43-41-17(h). Adhering strictly to this cap is fundamental to operating legally as an unlicensed handyman, as exceeding this amount on a single job can result in significant penalties.
Permitted jobs include minor repairs and maintenance tasks. Examples of work that fall under the exemption include:
- Fixing a leaky faucet
- Replacing a faulty light switch or electrical outlet
- Patching a small section of drywall
- Handling minor interior and exterior painting jobs
- Mending a broken fence post or staining a small deck
Conversely, any project with a total value of $2,500 or more is strictly prohibited without the proper state-level license. This includes large-scale jobs such as room additions, major kitchen or bathroom renovations, structural alterations, and complete roof replacements. Performing this type of work without a Residential-Basic Contractor license is illegal and places both the handyman and the homeowner at risk.
Registering Your Business in Georgia
Once you have a firm grasp of the work you are legally permitted to perform, the next step is to formally establish your business as a legal entity. This process involves several steps at both the state and local levels, ensuring your business is recognized and compliant. Properly registering your operation provides a professional foundation for your enterprise.
Your first decision is to choose a business structure, with the most common options for a new handyman being a Sole Proprietorship or a Limited Liability Company (LLC). A sole proprietorship is the simplest structure, as the business is not legally separate from the owner. An LLC, while requiring more paperwork, creates a legal separation between your personal assets and your business debts, offering a layer of liability protection.
After selecting a structure, you must register your business name. If you operate as a sole proprietor under a name different from your own legal name, you will need to register it as a “trade name” with the Clerk of Superior Court in the county where your business is located. For an LLC, the name must be registered with the Georgia Secretary of State to ensure it is unique within the state.
Next, you will likely need to obtain a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is essentially a Social Security number for your business and is used for tax purposes. While not always required for a sole proprietorship with no employees, it is necessary for an LLC and is useful for opening a business bank account. You can apply for an EIN for free on the IRS website.
Finally, you must secure a local business license, sometimes called an occupational tax certificate. This is a local permit issued by the city or county government where your primary business operations are located. The requirements and fees vary by jurisdiction, so you will need to contact your local municipal or county office to complete this final registration step.
Securing the Right Insurance
While Georgia law does not mandate insurance for an unlicensed handyman operating a solo business, securing coverage is a highly recommended aspect of protecting your financial future. A single accident or mistake on a job site could otherwise lead to devastating financial consequences. The right insurance policies provide a safety net against unforeseen events and demonstrate professionalism to your clients.
General Liability Insurance is a primary policy for any handyman. This coverage protects your business if you are found responsible for property damage or customer injury. For example, it would cover costs if you accidentally broke a window while working or if a client tripped over your equipment and was injured. Most industry professionals recommend a minimum coverage limit of $1 million to provide adequate protection.
If you use a vehicle primarily for your business, such as a work truck or van for transporting tools and materials, a personal auto policy may not provide sufficient coverage. Commercial Auto Insurance is designed to cover vehicles used for business purposes and offers higher liability limits. This ensures that any accidents occurring while you are driving for work-related tasks are properly covered.
Looking toward the future, if you plan to expand your business and hire employees, you will be required by state law to obtain Workers’ Compensation insurance. This insurance covers medical expenses and lost wages for employees who are injured on the job. Securing this coverage is a legal obligation once you have three or more employees, including yourself.
Defining Your Services and Pricing
With the legal and insurance frameworks in place, your focus can shift to the business strategy of defining what you do and how you charge for it. Creating a specific list of the services you will offer is a practical first step. This list should be guided by your skills and expertise while remaining within the legal boundaries of the handyman exemption.
After finalizing your service menu, you must decide on a pricing model. The two most common approaches in the handyman industry are charging an hourly rate or providing a flat-fee quote for the entire job. An hourly rate is straightforward and ensures you are compensated for all time spent, while a flat-fee quote can be more attractive to customers who want cost certainty before work begins.
To set your rates, research the local market in your specific area of Georgia. Analyze what other handyman businesses and small contractors are charging for similar services to ensure your pricing is both competitive and profitable. Remember to factor in not just your labor, but also overhead costs like insurance, fuel, and tool maintenance when calculating your prices.
Marketing Your Services Locally
With your business legally formed and your services defined, the next step is to attract your first clients. For a new handyman business, effective marketing often focuses on local, low-cost tactics designed to build a strong community presence. The goal is to make your business visible to homeowners and property managers in your immediate service area.
A free tool for local visibility is a Google Business Profile. Setting up a profile allows your business to appear in Google Maps and local search results when potential customers look for “handyman near me.” Encourage satisfied customers to leave reviews, as positive feedback can significantly boost your ranking and credibility.
Establishing a simple, professional website is another effective strategy. Your site should clearly list your services, showcase photos of your completed work, and provide easy-to-find contact information. Complement your digital presence by printing professional business cards and flyers to distribute at community centers, local hardware stores, and on public bulletin boards.
Networking within your local business community can generate valuable referrals. Build relationships with real estate agents, property managers, and employees at home improvement stores who frequently interact with people in need of your services. Platforms like Nextdoor and local Facebook groups can be effective channels for sharing your business information directly with residents in your target neighborhoods.
Managing Your Business Operations
Launching your business is just the beginning; sustained success depends on efficient day-to-day management. Establishing solid operational habits from the start will save you time and help build a reputation for professionalism. These ongoing tasks are the engine that keeps your business running smoothly and profitably long after the initial setup is complete.
One of the most immediate tasks is managing finances. This involves creating professional invoices for every job and ensuring timely payment collection from clients. Adopting a simple bookkeeping system, whether through a spreadsheet or basic accounting software, is necessary for tracking income and expenses and makes tax preparation significantly easier.
Delivering excellent customer service is also important. Responding to inquiries promptly, communicating clearly throughout a project, and ensuring clients are satisfied with the final result are all part of the job. Positive experiences often lead to the most powerful form of marketing: word-of-mouth referrals. Finally, consistently managing your tools and inventory ensures you are prepared for any job and prevents costly delays caused by missing equipment or materials.