It's against the law in California for a handyman to work without a license. A contractor's license brings security and the ability to make more money as a handyman. The Statewide Investigative Fraud Team, or SWIFT, is doing a clean sweep on illegal and unlicensed contractors who are working in California. When an unlicensed handyman is working without a license, he puts his career in jeopardy. The Five Hundred Dollar JobCalifornia law states that an unlicensed handy man cannot charge more than $500 for a job. This pay includes labor and cost of materials. It also includes that same fee if a handyman is performing more than one job at once; for instance, a handyman hired to paint a fence, unclog a sink and repair floor boards for a home owner will walk away with no more than $500 for all work done. The Minor Work ExemptionThough California has no handyman licensing, if a handyman wants to make more money without it being a crime, he or she will have to obtain a General Contractor's License first.

However, for those working without a license and want to be protected from any recourse from the government, they can apply for the Minor Work Exemption in California. This kind of permission slip allows the individual to work, but without expressing to the public that they are working as a qualified business contractor. In other words, they cannot advertise their handyman business if they are a freelancer looking for jobs. The Crime of ContractingAs an unlicensed person with skills and knowledge, the handyman is not permitted to contract work according to the California Business and Professions Code, section 7159. If someone is offering a home repair job at the rate of $2,000, a handyman is not permitted to accept the work if he does not carry a general contractor's license. Licensing the HandymanTo obtain a general contractor's license, a person must have at least four years of qualified experience. He will have to show proof that he has had experience working as a journeyman, specializing in a specific field, like that of carpentry or plumbing.

As California sees it, a handyman working without a contractor's license puts homeowners at risk for liability if something should go wrong. When a handyman is going to make more than $500 he must be licensed by the Contractors State License Board. To have a licensed issued, the handyman must be finger printed, have a FBI background check and be bonded or insured. Without these factors, a handyman is subject to six months in jail and can be fined up to $1,000 for not being in regulations of California law. handyman services toowoombaOther Handyman RequirementsIn California, a handyman managing a small business will also have to obtain a business tax license. business for sale ballinaIf the contractor is hiring other employees, he must register with the federal government to obtain a tax identification number. business for sale olean ny

He will also have to obtain liability insurance.How can a handyman license be obtained in California? There is no official handyman license issued by the Contractors State License Board in California; however, a contractor's license must be obtained for all work over $500. The state has a number of licensing classifications which may fall under a handyman's areas of expertise. What is a contractor license number? How do you search for specific corporations in California?business for sale gippsland vic How can I find out if my business name is available in California?business for sale cochrane ab Contractor's licenses are available for more than 40 specialized fields. business for sale hornsby sydney

Those who wish to become a licensed contractor in California must have the experience and skill for the license they wish to receive, and all applicants must take a trade examination. An application processing fee is required, and an additional licensing fee is required for those who pass the examination. Learn more about Business Resources What is the average cost of a business license in California? The cost of a business license in California usually varies between $50 to $100, as of 2015. Business licenses are administered by cities, and costs are de... What are the laws on obtaining a business license in California? California laws require all businesses to have a business license in the state, explains Nolo. The laws that govern the application of a business license d... What are considered the top banks in California for business services? JPMorgan Chase, The Huntington National Bank and Wells Fargo Bank are some top banks in California for business services, states CNBC.

Other top business b... What is required to purchase a shotgun in California? Purchasing a shotgun in California does not require any special license or permit in most cases. The person purchasing the gun must be at least 18 years of... How do you file a return with the Board of Equalization in California? What type of information is included in an OSHA 300 log? What are California inmate release dates? How do you register a broker-dealer for FINRA? How do you conduct a registered company search? Is mandatory overtime legal in California?When I was stung by the contractors board, I couldn’t believe what was happening. Here I was going out to quote a small painting job and the next thing I know this guy is handing me a ticket for contracting without a license!What did I do wrong?Legally I was allowed to do small painting jobs and I didn’t even quote the job. In fact, I told the guy right away that he’d need a licensed painting contractor because of the job size.

Here I am thinking I’m doing the right thing and getting fined anyway!“Why are you giving me a ticket, I didn’t even quote the job?” Because you can’t advertise services that require a specific trade license. I have your craigslist ad right here.” He then goes on to list all of the services I was advertising that weren’t allowed (pretty much ALL of my services).“So, you’re telling me that I can offer these services as long as they are for jobs under $1,000, but I can’t actually advertise them?” I asked in a mocking tone.“After it was all said and done, I walked away devastated and confused with a ticket in my hand. I had just started my business a few months prior to this happening so I didn’t have the confidence I do now. I thought I was going to have to pack up shop and get another job.Luckily for me, though, one of my customers was a high end attorney that had a soft spot for helping the common man. He offered to help me out for a very reasonable price. Long story short, I ended up winning the case and went on to run a very profitable handyman business.

This worked out in the end, but it was a pain in the ass and I would’ve preferred to avoid it. So, in this article I’m going to share some tips on making sure your business is operating within it’s legal limits – one of the first steps to starting a successful handyman business.Before you start offering services as a professional handyman, it’s important to understand the laws that apply to contractors in your state. You’ll want to find out if you need a handyman license, and what you can and can’t do. Every state is different when it comes to contracting laws, so you’ll have to do some research for yourself in your specific state. I’ll go over how below.Disclaimer: I’m not an attorney, and this is NOT legal advice. This is just what I would do if I was going to start a handyman business and wanted to avoid any run-ins with the law. Seek a qualified attorney for legal advice.As a handyman, or any contractor for that matter, you are likely to have limitations on what you can do.

However, you will be asked by many customers to perform jobs outside of your legal limits. Even my return customers are always asking me to do plumbing and electrical jobs, but I turn them down.Other than to avoid a legal headache, it’s important to protect your customers. From what I understand, if your customer’s house burns down, floods, or gets damaged because of work performed by you, and you are not licensed to perform that work, their insurance won’t cover the damage. I know this isn’t that likely to happen, but it’s not something I want lingering in the back of my mind while I’m trying to fall asleep at night. Maintaining peace of mind is a critical part of actually enjoying your business.With that being said, here are the steps you should take to stay out of trouble.Like I mentioned above, every state is different. So, simply search the term “your state contractor’s board” and your local contractors board website should pop right up.Once your on the website, read about the laws that govern handyman activity in detail.

Usually there is some sort of a handyman exemption that states what you can and can’t do without an actual contractor’s license. In most states, you don’t need a license for small repairs, but in California, and possibly other states, they actually require a license (even for jobs under $500).You might find some vague laws during your research. This “gray area” is tough to mitigate because it’s interpretation is subjective. That’s why when you talk to a lawyer, they are only giving their legal opinion. Nobody knows for sure until it goes to court.So, if you want to be ultra clear, I would recommend contacting the contractor’s board and asking to speak with an actual investigator. Ask them to clear up any specific questions you might have to see how they interpret the laws. After all, they are the ones enforcing them.Most likely, the investigator you talked to hasn’t thought through all the laws in detail. When I called one in my city, it was clear almost immediately that he only had basic knowledge of the statutes.

This was frustrating because I wanted to know exactly what I could do.  I know I can’t do major electrical and plumbing, but can I swap a light fixture or even change a shower head? I’m still not totally clear on this.If this happens to you, consider talking to other established handyman businesses in your area. Not only is it smart to connect with your competitors to form partnerships and help each other, but it’s great to get some inside perspective on what has been enforced in the past.As you may have already learned from my story, your marketing is often what can get you in trouble so be sure that you are abiding by all of the laws regarding advertising for home repairs.As I was getting cited in the story above, I took the opportunity to ask the investigator some questions. One thing he told me is the best place to find unlicensed contractors is to look on grocery store bulletin boards and on craigslist. This makes sense because those are the easiest places to advertise.

Not very effective, but easy, which is attractive to those who are just trying to make a quick buck.This step kind of goes without saying.Legal jargon can be difficult to understand so once you’ve thoroughly read through the laws, consider scheduling an hour with an attorney to get their opinion.  A few hundred bucks is nothing when you consider the long term success of your business. Be sure to do your own research prior so you can ask good questions.I remember back when I was first learning the contracting laws in my state, it was extremely discouraging. I was very doubtful I’d even be able to run a profitable business with all of the rules and regulations. I mean, not being able to do any plumbing, electrical, HVAC, or jobs over $1,000 seemed like a business killer.But, I decided to challenge that assumption and get started anyway. I focused on offering services that I could do (which turns out is a lot), and not what I couldn’t do. Soon after, I uncovered several very profitable services that have allowed me my business and enjoy the freedom of being my own boss.