How to start a handyman business for under $1K (5 steps)

April 28, 2025

Last updated: December 10, 2025

15

min read

C

Christine Colling

Starting a handyman business takes three things: skills people pay for, proof you're legitimate, and one paying customer. You don't need business plans, fancy tools, or thousands in startup cash.

What you actually need to become a handyman:

  • Basic tool kit: $400-600
  • General liability insurance (first month): $50
  • Business registration and licensing: $50-150
  • Simple website setup: $0-100
  • Marketing materials (business cards, signs): $50-100
  • Basic supplies (screws, caulk, adhesive, drop cloths): $100-200

Most handymen earn $60,000-$80,000 annually with minimal business costs. Your truck is your office, tools last years, and demand never stops. This guide shows you the five steps to launch for under $1,000.

Is a handyman business profitable?

Yes, and the numbers prove it.

According to the Bureau of Labor Statistics, the median wage for maintenance and repair workers is around $48,000 per year. But that's for employees. When you run your own handyman business, you keep what you earn minus your costs – and your costs are low.

Most handyman business owners earn between $60,000 and $80,000 annually, with some making well over six figures once they've built up a client base. Low business costs and high demand mean you keep most of what you make. Your truck becomes your office, your tools last for years, and once you build a reputation, customers come to you.

The demand is consistent. Homeowners need help with repairs, installations, and maintenance – tasks too small for specialized contractors but too complicated to DIY. You're filling a gap that's always there.

Step 1: Define your handyman business services

Forget writing a handyman business plan. You don't need a 50-page document. You need a menu of services you're ready to charge for today.

Most new handymen make the mistake of saying "I do everything." That sounds helpful, but it costs you money. When you're a generalist, people assume you're cheap. When you specialize, you can charge more, travel less, and build a reputation faster.

Pick your menu

Basic handyman services (good starting points):

  • Furniture assembly (IKEA, office furniture, shelving units)
  • Picture hanging and wall mounting (frames, mirrors, small shelves)
  • Basic painting (touch-ups, single rooms, trim work)
  • Door and window repairs (handles, locks, weatherstripping)
  • Caulking and sealing (bathrooms, windows, gaps)
  • Gutter cleaning and minor repairs
  • Pressure washing (driveways, decks, siding)
  • Basic carpentry (shelf installation, simple repairs)
  • Appliance installation (dishwashers, garbage disposals)
  • Yard work and landscaping maintenance

Higher-paying handyman services (specialized skills, better rates):

  • Electrical work (ceiling fans, light fixtures, outlet installation)
  • Smart home installations (thermostats, security cameras, doorbell systems)
  • Plumbing repairs (faucet replacement, toilet repair, drain clearing)
  • Drywall installation and repair
  • Tile work (backsplashes, bathroom repairs)
  • Flooring installation (laminate, vinyl, hardwood repairs)
  • Deck building and repairs
  • Kitchen and bathroom remodeling (minor projects)
  • HVAC maintenance and filter replacement
  • Home security system installation

The "I fix everything" approach means low pay and lots of driving. Picking 3-5 services from either category means you can price clearly, travel efficiently, and build expertise faster.

Niche down for higher rates

You don't have to specialize right away, but consider it. Being "The Drywall Guy" or "The Pet Door Specialist" in your area means you charge more, get referrals faster, and spend less time explaining what you do.

A specialist handyman can charge 30-50% more than a generalist for the same work because customers assume expertise equals quality. Pick a lane that matches what you're best at and what's in demand locally.

Pricing: hourly vs. flat rate

Most new handyman businesses start with hourly rates ($50-$75 per hour depending on location), but flat-rate pricing wins for small jobs.

Customers hate surprises. When someone calls you to hang a TV, they want to know the price upfront. "That'll be $150" beats "It's $60 an hour, and it might take two to three hours" every time.

Flat rate formula: (Your hourly rate × Estimated hours) + Materials cost + 20% buffer = Flat rate price

Example: TV mounting job

  • Your rate: $65/hour × 1.5 hours = $97.50
  • Materials (bracket, screws): $25
  • Buffer (20%): $24.50
  • Total flat rate: $147
Visual formula for calculating handyman flat rate pricing including labor, materials, and profit buffer.

The buffer covers unexpected complications and gives you room for profit. As you gain experience, you'll estimate time more accurately and can adjust the buffer down to 10-15%. 

Use flat rates for predictable jobs (furniture assembly, fixture installation, basic repairs). Use hourly rates for bigger projects where the scope isn't clear (full room painting, extensive repairs).

If you're still unsure what to charge, check HomeAdvisor Cost Guides or Angie's List for local pricing ranges on common handyman services.

Step 2: Get your handyman business legal

You need three things to work legally and protect yourself when starting a handyman business: understanding handyman limits, choosing a business structure, and getting insurance. 

Skip these and you're gambling with every job you take.

Handyman vs. contractor: know the limits

In most states, handymen can do minor work without a contractor's license, but there's a dollar limit. Cross that line and you're operating illegally.

You usually don't need a license to be a handyman for small jobs under $500 to $1,000, depending on your state. Major structural work, large electrical jobs, or projects over your state's limit require a contractor's license. Check your local laws.

The limits break down like this across key states:

  • California: Recently raised to $1,000 for combined labor and materials
  • Texas: Allows handyman work up to $20,000 without a contractor's license
  • Florida: Caps handyman work at $1,000 per project
  • New York: Varies by municipality, typically $300-$500
  • Illinois: $1,500 limit for handyman work

What handymen can typically do without a license:

  • Minor repairs and maintenance
  • Installing pre-built items (shelves, fixtures)
  • Painting and drywall patching
  • Simple plumbing fixes (not major installations)
  • Small electrical work (replacing outlets, not rewiring)

What usually requires a contractor's license:

  • Structural changes
  • Major electrical or plumbing installations
  • Roofing work
  • HVAC installation
  • Projects over your state's dollar threshold

Check your state's contractor licensing board website to confirm. When in doubt, stay under the limit or refer the job to a licensed contractor.

Comparison chart showing legal work limits for unlicensed handymen versus licensed contractors.

Business structure: sole proprietor or LLC?

You have two main options:

Sole proprietorship is the fastest and cheapest. File a DBA (doing business as) with your county, get a business license if required, and you're running. No separate business taxes – you report everything on your personal return. The downside: you and your business are legally the same thing. If someone sues your business, they're suing you personally.

LLC (limited liability company) costs more upfront and requires annual fees, but it separates you from your business legally. If someone sues your business, your personal assets (house, car, savings) are protected. For handyman businesses, this protection is worth the extra cost once you're working in people's homes.

Start as a sole proprietor if you need to launch fast and cheap. Switch to an LLC within your first year once you're making money.

Insurance: your trust signal

You're entering people's homes with tools. Things break. Accidents happen. You need general liability insurance before your first paid job.

Handyman insurance typically costs around $50 per month for general liability coverage. This protects you if you accidentally damage someone's property (you drill through a water pipe) or if someone gets hurt (they trip over your tools).

General liability insurance isn't just protection – it's a trust signal. Customers feel safer hiring someone who's insured, and many won't even consider hiring you without proof of coverage.

Some states or municipalities also require a handyman business license or permit. Check with your city or county clerk's office to see what's required.

Step 3: Name and register your handyman business

Keep it simple. Your business name should tell people what you do.

The best handyman business names follow a pattern: [Your Name] + Handyman Services, or [Your Area] + Handyman, or [Your Name]'s Home Repair. Examples: "Mike's Handyman Services," "Riverside Handyman," "Quality Home Repairs."

Avoid clever names that need explanation. "Fix-It Felix" sounds fun but doesn't tell anyone what you do. "Thompson Handyman Services" is clear, professional, and easy to find.

Handyman Logo Example

Once you have a name, check if it's available. Search your state's business registry to make sure no one else is using it. Then search for available domain names - you'll need a website. Take a look at some handyman website templates.

If you're stuck or want to skip the back-and-forth of checking availability, use Durable's AI Business Name Generator. It suggests names and shows you matching domains in seconds, so you're not spending hours on something that should take minutes.

Durable's AI Business Name Generator

Register your business name

File your DBA (doing business as) or register your LLC with your state or county. This makes your business name official and legal. The process varies by location, but most counties let you file online for $25-$100.

You'll also need a federal EIN (employer identification number) if you form an LLC or plan to hire anyone. Get one free from the IRS website – it takes about five minutes.

Step 4: Get your handyman tools and software ready

You probably already own some of what you need. Don't overbuy – start with the essentials and add tools as you take on jobs that require them.

Hardware: the essential toolkit

A basic handyman toolkit covers 80% of common jobs. What you need and what it costs:

Basic hand tools ($200-$400):

  • Hammer, screwdrivers (flathead and Phillips), adjustable wrench, pliers, tape measure, level, utility knife

Power tools ($400-$800):

  • Cordless drill/driver with bits, circular saw or miter saw, oscillating multi-tool

Optional helpful items ($300-$600):

  • Stud finder, ladder (6-foot step ladder minimum), voltage tester, headlamp or work light, tool bag or box

Total basic toolkit: $600-$1,800

Add power tools for expanded services ($800-$1,500):

  • Table saw, compound miter saw, router, nail gun, shop vacuum

Specialty tools as jobs require ($500-$2,000):

  • Tile saw, plumbing snake, electrical tester kit, flooring tools

Complete professional setup: $2,200-$5,300 (source)

Don't buy every tool upfront. Start with the basic toolkit, then add specialty tools as jobs require them. Need a tile saw for one bathroom job? Rent it first. If you're doing tile work regularly, then buy one.

Checklist of essential tools needed to start a handyman business including drill and hand tools.

Where to shop for tools affordably

You can cut your startup costs in half by shopping smart:

  • Used hand tools: Facebook Marketplace, Craigslist, and estate sales for hammers, wrenches, and screwdrivers – they last decades if maintained
  • Power tool sales: Home Depot, Lowe's, and Harbor Freight during Memorial Day and Black Friday (20-40% discounts)
  • Rental first: Expensive specialty tools like tile saws until you're using them often enough to justify buying

Consumables and job-specific materials

Stock up on basic supplies so you're not running to the hardware store mid-job. These small items add up but they're important for looking professional and completing jobs efficiently.

Essential consumables ($100-200):

  • Fasteners: Variety pack of screws, bolts, washers, and anchors in common sizes
  • Adhesives: Wood glue, construction adhesive, super glue
  • Sealants: Clear and white caulk, plumber's putty, Teflon tape
  • Electrical basics: Wire nuts, electrical tape, outlet covers
  • Finishing supplies: Sandpaper (120, 220, 320 grit), steel wool, touch-up paint
  • Protection: Drop cloths, plastic sheeting, painter's tape
  • Cleaning: Rags, paper towels, degreaser, all-purpose cleaner

Buy these at Lowe's or Home Depot in bulk when they're on sale. Having the right fastener or sealant on hand saves time and makes you look prepared. Charge materials back to customers as part of your job pricing.

Software: invoicing and looking professional

Paper receipts and a notebook won't cut it. You need a system to track customers, send invoices, and get paid without spending hours on admin work.

At minimum, you need invoicing software that lets you create professional invoices, track payment status, and accept credit cards. Many handymen also use simple CRM tools to keep track of past jobs and follow up with customers.

Durable's AI website builder handles this without making you juggle multiple tools. You can build your handyman website in 30 seconds, send invoices, track payments, and manage customers all from one place. It's built for service businesses like yours, so you're not learning software when you should be doing billable work.

Step 5: Market your handyman business services

Marketing your new handyman business isn't complicated. Show up where people are already looking for help and make it easy for them to choose you.

Start with the basics

A Google Business Profile is the most important marketing tool for local service businesses. It's free, and it's how most people find handymen in their area (a.k.a. local SEO). Create your profile, add photos of your work, list your services, and ask every happy customer to leave a review.

According to research from BrightLocal, 91% of people rely on local reviews when choosing a service provider. Five good reviews can be worth more than a fancy website.

Nextdoor is where neighbors ask for recommendations. Join your local Nextdoor group, introduce yourself, and respond helpfully when people ask for handyman recommendations. Don't spam – just be present and useful.

Tell your neighbors and friends. Word of mouth is still the best marketing for handyman businesses. Let people know you're taking on work. Fix something small for free or at cost for a neighbor, then ask them to refer you if they're happy.

Post flyers in neighborhoods you want to work in. Apartment complexes and community boards too. It doesn’t have to be fancy or take a lot of time. Describe your services, prices, and how to contact you. Use a free AI design generator to create a professional looking flyer in minutes.

Professional handyman services flyer

Get reviews

Successful handyman businesses grow by doing good work, asking for reviews, and getting more work because of those reviews.

Most customers will leave a review if you make it easy and you ask at the right time. Send this text within 24 hours of job completion:

"Hi [Customer Name], thanks for trusting me with your [specific repair/installation]. If you're happy with the work, I'd appreciate a quick review on Google. Link: [Google Business Profile review link]. It takes 30 seconds and helps other neighbors find reliable help. Thanks! - [Your Name]"

Build your marketing around this review system, and your business will grow faster than any paid advertising.

Set up a website

You need a website. Not a complicated one – just one that explains what you do, shows proof you're legit (reviews, photos), and makes it easy to contact you.

Most people who call you will check your website first to verify you're real. If you don't have one, or if it looks amateur, they'll call someone else.

You can spend weeks trying to figure out website design, or you can use Durable's AI website builder to create a professional handyman website in under a minute. It asks you three questions, generates your site with service descriptions and contact forms, and handles mobile optimization automatically. You look established on day one, even if you just started.

FAQ: starting a handyman business

Do I need a business license to be a handyman?

It depends on your location. Most cities and counties require a general business license, which costs $50-$200 and is separate from a contractor's license. For example, Los Angeles requires a general business license ($45) plus a handyman business tax registration when you start a handyman business. Check with your local clerk's office to see what's required in your area.

What's the difference between a handyman and a contractor?

Handymen do minor repairs and maintenance – usually projects under $500-$1,000 depending on the state. Contractors handle larger projects, structural work, and jobs that require specialized licenses (electrical, plumbing, HVAC). For instance, a handyman can replace a faucet but can't install new plumbing lines. Contractors need state licensing and often carry higher insurance limits.

How much should I charge as a handyman?

Rates vary by location and experience. Most handymen charge $50-$75 per hour in smaller cities, $75-$100 in major metros. You can also charge flat rates for specific jobs: $100-$150 to mount a TV, $75-$100 to install a ceiling fan, $150-$300 for furniture assembly depending on complexity. Start at the lower end and raise rates as you get busier.

Can I start a handyman business with no experience?

You need the skills to do the work safely and well, but you don't need years of professional experience. If you're confident fixing things around your own house and friends ask you for help with repairs, you probably have enough skill to start. Begin with jobs you know you can handle perfectly – like mounting TVs or assembling furniture – then expand as you learn.

Should I start part-time or go full-time right away?

Start part-time if you have a job that covers your bills. Work evenings and weekends for your first 3-6 months to build a client base and test your pricing. Once you're booking 15-20 hours of paid work per week and have 2-3 months of expenses saved, you can consider going full-time. Most successful handyman businesses start as side work and grow into full-time income over 6-12 months.

How do I find my first customers?

Start close: tell neighbors, friends, and family you're taking on work. Create a Google Business Profile and ask your first few customers to leave reviews. Join Nextdoor and respond when people ask for handyman recommendations. Offer to fix one small thing for free for a neighbor who's likely to refer you. Your first 5-10 customers will almost always come from people who already know you or live near you.

Do I need special insurance as a handyman business owner?

Yes. General liability insurance is essential. It protects you if you accidentally damage someone's property or if someone gets hurt while you're working. A real example: if you're installing shelves and accidentally drill into a water pipe, liability insurance covers the water damage. It costs about $50 per month and is non-negotiable if you're working in people's homes.

How much does it cost to start a handyman business?

You can start a handyman business for under $1,000 if you already own basic tools and a vehicle. Essential startup costs include business registration ($50-$150), general liability insurance (~$50/month), and marketing materials. If you need to buy a full set of professional tools, expect startup costs between $2,000 and $5,000.

Launch your handyman business this month

Starting a handyman business comes down to five steps: pick your services, get legal protection, register your name, buy basic tools, and find customers. Skip the complicated business plans and expensive consultants.

The biggest time-waster? Cobbling together different tools for your website, invoicing, and customer management. You'll spend weeks learning software instead of doing billable work.

Durable handles everything in one place. Generate your business name and website in minutes, send professional invoices, and track customers without switching between apps. Built specifically for service businesses like yours.

Pick three services you're ready to charge for today. Get insured and registered. Then let Durable handle the business setup so you can focus on what actually makes money: fixing things and keeping customers happy.

How to start a handyman business for under $1K (5 steps)