Michigan handyman laws draw a hard line at $600. If the total price of a single residential project, counting labor and materials together, reaches that number, you need a Residential Maintenance and Alteration (M&A) Contractor license from the Department of Licensing and Regulatory Affairs (LARA). Below $600 you can legally work without a license, but permits, consumer protection rules, sales tax on materials, and federal lead paint regulations still apply, and getting any of those wrong can cost more than the job pays.
The $600 Threshold
Under Michigan’s Occupational Code, anyone performing work on a residential or mixed-use property must hold an M&A Contractor license once the combined cost of labor, materials, and everything else on a single project reaches $600.1Michigan Legislature. Occupational Code Act 299 of 1980 – Section 2403 The threshold looks at the whole project, not individual invoices. Splitting one job into several contracts each under $600 to avoid the requirement is specifically prohibited by statute. If the full scope adds up to $600 or more, a license is required no matter how the paperwork is written.
What Unlicensed Handymen Can Legally Do
Below the threshold, handyman work is generally minor repair and routine maintenance: replacing a faucet, patching drywall, fixing a leaky toilet, swapping a light fixture. No M&A license is required for those jobs. What you cannot do is advertise or accept work that requires a license and then perform it unlicensed. Michigan’s Consumer Protection Act treats false claims about qualifications and services as a violation on their own,2Michigan Legislature. Michigan Consumer Protection Act – Section 445.903 so an unlicensed handyman who markets kitchen remodels or structural work is exposed even before starting the job.
Trade specialties sit outside the M&A license entirely. Electrical, plumbing, and mechanical work require their own licenses regardless of project cost, and nothing about staying under $600 changes that.
Getting an M&A Contractor License
If your projects regularly cross the threshold, licensing is the only legal path forward. Three steps:
- Complete 60 hours of approved pre-licensure coursework covering business management, estimating, contracts and liability, marketing, project management, Michigan’s residential code, and construction safety. Each of the seven subject areas must get at least six hours.3Michigan Legislature. Occupational Code Act 299 of 1980 – Section 2404b
- Pass an exam showing fair knowledge of your obligations to the public and the statutes that govern the license.4Michigan Legislature. Occupational Code Act 299 of 1980 – Section 2404
- Submit the application with a $195 fee for a three-year license. LARA may also ask for evidence of good moral character.5State of Michigan: Department of Licensing and Regulatory Affairs. License Fees
The license runs for three years before renewal.
Permits Are Separate
Licensing and permits are two different requirements, and licensed contractors still need permits for most non-trivial work. Michigan’s Building Code requires a permit before constructing, altering, repairing, or demolishing a building or its service equipment.6State of Michigan: Department of Licensing and Regulatory Affairs. Building Permit Information That includes structural changes, electrical work, plumbing, and mechanical projects.
There is an “ordinary repairs” exception, but it is narrower than it sounds. Ordinary repairs cannot involve cutting away walls or structural supports, removing or changing exits, or altering plumbing, electrical wiring, or mechanical systems that affect safety.6State of Michigan: Department of Licensing and Regulatory Affairs. Building Permit Information Repainting a room qualifies. Rerouting a drain line does not.
Permit administration varies by location. Some Michigan municipalities run their own inspections; others rely on county or state enforcement. Before starting, check the LARA Statewide Jurisdiction List for the correct enforcing agency. Working without a required permit can trigger a stop-work order, fines from the local building department, and orders to tear out and redo the work.
Sales and Use Tax on Materials
Michigan’s tax treatment for handymen runs opposite to retail, and that catches new operators off guard. A contractor or handyman who buys materials and installs them in a customer’s property is treated as the consumer of those materials, not a reseller. You pay sales or use tax when you buy the materials, and you do not charge sales tax to the customer.7State of Michigan. Construction FAQ
The rate is 6% on the cost of materials used in the job.8State of Michigan. Contractor Manual Buying from a Michigan supplier satisfies the obligation at the register. Buying from an out-of-state vendor that doesn’t collect Michigan tax means you owe use tax and have to report it yourself. You cannot break tax out as a pass-through line on the customer’s invoice; it is your cost, built into your price.
If the homeowner buys the materials directly and hands them to you for installation, you generally don’t owe use tax on those items as long as the homeowner paid tax at purchase. Beyond sales and use tax, solo handymen are responsible for self-employment tax, estimated quarterly payments, and income reporting, and Michigan’s flat 4.25% state income tax applies to the earnings.
Lead Paint Rules for Pre-1978 Homes
The EPA’s Renovation, Repair, and Painting (RRP) Rule applies to paid work that disturbs paint in housing or child-occupied facilities built before 1978.9U.S. Environmental Protection Agency. Renovation, Repair and Painting Program – Contractors It covers sole proprietors, and it kicks in at surprisingly small thresholds: more than six square feet of interior painted surface or 20 square feet of exterior painted surface.
Compliance means two things. Your firm must be EPA-certified, and at least one person on the job must have completed an EPA-accredited training course in lead-safe work practices. Firm certification costs $300 and lasts five years.10U.S. Environmental Protection Agency. Renovation, Repair and Painting Program – Firm Certification Records must be kept for three years after each renovation, including any lead-paint testing reports, proof you gave the homeowner the EPA’s lead hazard pamphlet, and documentation of your work practices.11U.S. Environmental Protection Agency. What Records Will My Firm Be Required to Keep to Comply With the Renovation, Repair, and Painting Rule
A simple drywall patch in a 1960s home can trigger the rule. EPA penalties for non-compliance can reach tens of thousands of dollars per violation, and Michigan does not run its own authorized renovation lead program, so the federal EPA enforces directly.
Contracts, Cancellation Rights, and Advertising
Michigan does not require a written contract for every handyman job, but writing down the scope, price, and payment terms is the simplest way to prevent a dispute. Licensed contractors have more to include: under the Construction Lien Act, residential construction contracts must carry the contractor’s license number and a statement about Michigan’s licensing requirements for builders, M&A contractors, electricians, plumbers, and mechanical contractors.
The Consumer Protection Act makes it unlawful to misrepresent pricing, quality, or scope in any trade transaction.2Michigan Legislature. Michigan Consumer Protection Act – Section 445.903 Quoting a low price to get hired and then inflating the bill counts. If unexpected work becomes necessary mid-project, get written approval before expanding the scope or adding charges. A gross discrepancy between what was promised verbally and what appears in the final written agreement is itself a violation.
Cancellation Rights
Homeowners get cancellation protection under two separate Michigan laws:
- Under the Home Solicitation Sales Act, if a handyman or contractor solicits a homeowner at their residence and the homeowner signs an agreement there for goods or services over $25, the homeowner has until midnight of the third business day to cancel. That covers door-to-door sales and phone solicitations where the contract is signed at the buyer’s home.12Michigan Legislature. Home Solicitation Sales Act – Act 227 of 1971
- Under the Home Improvement Finance Act, if the contract includes installment payments or financing, the homeowner can cancel by 5:00 p.m. on the next business day after signing.13State of Michigan. Contract Cancellation Information for Consumers
The federal FTC Cooling-Off Rule provides a similar three-business-day right for door-to-door sales over $25 and can apply alongside the state law. If you solicit at someone’s home, the contract must include a cancellation notice, and starting work during the cancellation window puts the whole agreement at risk.
Financing and Advertising
Unlicensed handymen cannot advertise services that require a license. If you offer in-house financing, the Home Improvement Finance Act requires the agreement to state the maximum rate and amount of the time price differential being charged, and to include a cancellation notice. It also prohibits offering gifts, bonuses, or rewards as inducements to sign a financing agreement.14Michigan Legislature. Home Improvement Finance Act – Act 332 of 1965
Insurance and Hiring Helpers
Michigan doesn’t require a specific insurance policy for unlicensed solo handymen, but going bare puts personal assets on the line. General liability insurance covers property damage or bodily injury caused by your work. If you flood a kitchen or a customer trips on your equipment, the policy pays instead of you. Solo operators often find policies starting under $1,000 per year, though premiums vary with services and claims history. If you drive a personal vehicle for work, your standard auto policy almost certainly excludes work-related incidents, and a commercial auto policy fills that gap.
Workers’ Compensation Triggers
Michigan’s Workers’ Disability Compensation Act requires workers’ comp coverage for private employers with three or more employees at any one time. It also applies to employers with fewer than three employees if at least one person has worked 35 or more hours per week for 13 or more weeks during the preceding 52 weeks.15Michigan Legislature. MCL – Section 418.115 – Workers Disability Compensation Act of 1969 A solo handyman covers no one but themselves. Bring on a regular helper, and the 13-week clock starts.
Employee or Independent Contractor
How you classify a helper matters. Michigan uses the IRS 20-factor test to distinguish employees from independent contractors, looking at behavioral control (who sets hours and methods?), financial control (whose tools? who bears profit or loss?), and the nature of the relationship (ongoing or project-based?).16State of Michigan. Independent Contractor or Employee – The IRS 20-Factor Test Misclassifying an employee as a contractor to sidestep unemployment tax and workers’ comp premiums is one of the fastest ways to attract an audit and back-owed penalties.
Getting Paid: Liens and the 90-Day Clock
Michigan’s Construction Lien Act gives contractors, subcontractors, suppliers, and laborers the right to place a lien on a property when they aren’t paid for improvements they provided.17Michigan Legislature. Construction Lien Act – Act 497 of 1980 A lien is a legal claim against the property itself and can block a sale or refinancing until the debt is paid. A handyman who contracts directly with the homeowner doesn’t need to send a preliminary notice of furnishing to preserve lien rights.
The deadline is 90 days. You must record your claim of lien in the register of deeds office for the county where the property is located within 90 days after your last day of furnishing labor or materials.18Michigan Legislature. MCL – Section 570.1111 Miss the window, and the lien right disappears. After recording, you have 15 days to serve a copy on the property owner by personal delivery or certified mail. The deadline is unforgiving no matter how much you’re owed.
Penalties for Working Without a License
Michigan treats unlicensed contracting as a criminal offense, not an administrative slap. Penalties escalate with each offense and with the harm caused:
- First offense: a misdemeanor carrying a fine of $5,000 to $25,000, up to one year in jail, or both.19Michigan Legislature. MCL – Section 339.601 – Occupational Code
- Second or subsequent offense: a misdemeanor with the same fine range but up to two years in jail, or both.
- Offense causing death or serious injury: a felony punishable by a $5,000 to $25,000 fine, up to four years in prison, or both.
Courts must also order restitution if you’re found to have violated the licensing requirement, meaning you repay the homeowner.19Michigan Legislature. MCL – Section 339.601 – Occupational Code On top of that, the homeowner or any “affected person” can file a separate civil action for an injunction to stop you from operating, plus actual costs and attorney fees. Local building departments can issue stop-work orders for unpermitted construction, and the cost of bringing non-compliant work up to code usually falls on whoever performed it. Homeowners who believe a handyman engaged in deceptive practices can file complaints with the Michigan Attorney General’s Office, which investigates violations of the Consumer Protection Act and can pursue civil enforcement including financial penalties and restitution.