How Much Does it Cost to Start a Handyman Business?
The cost to start a profitable handyman business will usually fall somewhere between $2,000 and $6,000, depending on how much of the process you outsource vs. do yourself.
However, that doesn’t mean you have to spend that much upfront. These costs can be paid over the first several months in business while you are making money.
While this may seem expensive, the start-up costs for a handyman business are low compared to most businesses, especially if you already have the tools and a work vehicle.
Additionally, I don’t like to think of them as costs but as investments since you are investing in a business that will bring you freedom, high income, and fulfilling work.
Of course, you can start a handyman business for just a few hundred bucks, but that means you’ll be cutting corners that will cost you in the long run.
Here’s a more detailed explanation of costs.
List of Handyman Business Start-Up Costs
This list assumes that you already have a lot of the necessary tools and a work vehicle. If you don’t have either of those, then the cost will be significantly higher, of course.
Business Licensing: $100-$1,000
This expense will vary depending on the city and state in which you plan to run your business, the business structure you choose (LLC, S Corp, or Sole Proprietor), and whether or not you pay somebody to help you submit the forms.
If you go with an LLC and file the forms yourself, expect to spend about $400-$500 here. However, that is the cost for filing with the state, you’ll also need to consider other business licenses such as a city business license. But, those are usually less expensive and should only be around $100-200 for each city you plan to work in.
Contractor’s License (optional in most situations): $0 – $1,000
In most states, you won’t need a contractor’s license to start offering home repairs. However, if you want to tackle large projects such as kitchen or bath remodels and don’t want to be limited to only small repairs, then a contractor’s license is usually necessary.
The cost to obtain that license can vary significantly depending on where you live and other factors. This is something you’ll want to look into for your state.
Liability Insurance: $30 – $200 per month
Getting general liability insurance as a pro handyman isn’t required by law unless you have a contractor’s license, but it’s still a good idea and something I recommend. Here’s a guide to getting the right coverage at the right price.
Tools and Equipment: $0 – $3,000
Typical handyman services only require basic hand tools and a few power tools. Usually, no expensive specialized equipment is necessary.
If you already have most of the essential handyman tools, this will be a small expense. However, if you possess very few tools, then you’ll obviously spend more.
Either way, it’s best to avoid throwing a bunch of money at fancy tools during the first few months. Instead, buy tools as you need them.
Software: $0 – $75
There are two types of software most handymen will need: accounting software and estimating software. There are excellent free options for both, as I mention here. However, these are usually “freemium” models where you will have to pay for certain optional features.
Logo Design: $0 – $1,000
You can design your own or have a pro do it for you. I’d recommend the latter. Crowdsourcing your handyman logo is probably the easiest way to get a great logo designed for about $500. But in a pinch, you could use a service like Fiverr to get o