How to start a handyman business legally in the state of California now California loves their regulations And it's no different for starting a handyman business So today I want to talk specifically about how to start a handyman business in the state of California now if you're interested in this kind of topic feel free to subscribe to this channel like this video and leave me a comment in the comment section below because this this channel is all about Starting up a handyman business or taking your handyman business to the next level so here in California. It is very Stringent on what a handyman can and cannot do so there's a lot of regulations and it's also very hard to find out what you can and cannot do I've talked to numerous people even numerous people have the CSLB and no one can give me a For-sure straight answer because there's a lot of gray areas in the, California Contractors law, but today we're going to talk about how to get a handyman license in the state of California Now I do that in quotations because there is no such thing as a handyman license, right? I haven't found anywhere in the United States where they have a handyman license you just basically operate as a unlicensed contractor and you need to basically research what that means in your particular state now in this one we're gonna talk specifically about California and what that means so California has a Contracting without a license law and basically that states that anyone can perform any Projects up to five hundred dollars including labor materials without having a contractor's license So basically that is how you operate legally as a handyman is you perform No project that is greater than five hundred dollars, including labor and materials, right? so to break that down into simple forms if someone buys a bathroom vanity for $450 you can only legally charge them $49 because it's four hundred ninety nine dollars is the limit to install that Manatee And yes, it's still even if they buy the materials that's still house of the whole law works at least That's what I found now There is a very gray area in the California law of what defines a project right? Some people will say that a project is defined as the house, right? So It's $500 per Year for the address and that's it And I I tend to disagree with that because there's nowhere in the law that says anything about the address of a home write a project in my book is defined as a Single project right? So if you are building a deck, that's a project, right? If you are remodeling a bathroom, that's a project that includes, you know, installing the shower installing the bathtub Installing the faucet installing the vanity.
All of that is encompassed in a project, right? But it's also a project to install a ceiling fan in one room And then it's a different project to install a kitchen faucet in another room. So At least the way that I interpret it you can do multiple projects at the same address as long as As long as those individual projects do not go over $500 But you cannot take a large project and split it up into smaller projects So you can't take a bathroom remodel and be like, okay I'll put in your bathtub for $500 and then I'll put in your kitchen faucet for $500 and then I'll put in your Toilet for $500 you cannot do that Because that is defined as one whole project. It also says in the law if you guys want to check it out that you cannot perform more than $500 or you cannot perform a project on a on a larger project so say someone is Remodeling their house, right and you can and they want you to come in and just do the faucets Right the bathroom faucets and the kitchen faucets.
Technically. You cannot do that according to the law Now my question is, you know, who's going to look that deep into a project same thing with you know? If someone buys a vanity for four or $50 who's going to look that deep into that? the only time you have an issue with the CSLB is if you have a complaint if you do something wrong and Obviously if you piss people off, right? And if you look at the CSLB stings, they have a they have a whole youtube channel on that I will link that in the description below it's really really kind of cool to watch they they basically publish all their or most of their CSLB stings where they're Going out and catching unlicensed contractors.
They're really going after people who are, you know, repaving whole driveways for $10,000 or Landscaping whole front yards for you know, $20,000 or remodeling a house We're adding on to a house for ten twenty thirty thousand dollars, right? They're not after the handyman charging, you know, 150 bucks to replace the ceiling fan, right? I Mean like they're like, oh you've done too many ceiling fans today. You're going to jail, right? Like that's not that that's at least in my mind not how they work that may be how they work but at the end of the day this business is all about risk management and Kind of figuring out what you should and should not do and what you feel is working with the most integrity personally, I think that the handyman law here in California puts a lot of stringent on both both handyman and business and homeowners because if a project, you know say it's going to be 1500 bucks right but legally a handyman cannot do that But no contractor is going to want to step down into that $1500 realm and perform that work not many contractors anyways So it kind of puts the homeowner in a pinch like what do they do and they're kind of putting handyman in a pinch Too because it's like if the handyman wants to help out the homeowner now, they're technically working illegally But the homeowner has no other choice like so I feel like that kind of regulation does more harm than it does good I think that that regulation needs to get raised to you know, maybe a thousand fifteen hundred even two thousand would be nice I know a lot of other states, they don't have any cap or their cap is more like ten thousand or five thousand So here are all differs for that.
So That's the whole handyman law out of the way so first thing that you need to do when you start up a handyman business in California Research the law don't just take my words for research research research. I mean do so much research I mean I even took a course at the CSLB Specifically on this went to a training seminar for it There's a lot of information about the law and it will probably just make you more confused But you still got a research because you have to know what is right for you. And what is wrong for you? That's what you need to know because after all it's your business.
It's no one else has been in Situating my business here and for Nia step two is get a business license in the city that you operate in That is all that is required to be a handyman Obviously to get a contractor's license That's a whole nother thing but to get a handyman license right like we talked about before there is no handyman license but to get an unlicensed contractor license you have to get a Business license just with your business from the city that you're working.
You also need to get liability insurance Up to a million dollars in liability insurance. There are some great resources to get that The company that I work with is a DD and L. I will link that in the description below I also have a video that I'll put up here talking with my insurance agent About you know, liability insurance and things like that and there's some interesting things that you will learn if you watch that Insurance video you'll learn all about the terrorists insurance to that we have to get here in California so it's kind of crazy the rabbit-hole gets deeper, but so step one research step two get a business license step three is get general liability insurance and step four is start marketing and Get tools and just start going at it. And another thing that is very very very important when starting any handyman business anywhere is Documenting every single thing that you do and making sure that you have good good bookkeeping practices from the very beginning Because I will tell you from experience it gets out of hand very quickly You're like, oh I can buy this tool I can buy that tool that you know Like I mean if you're a tool nut, like I am like it's like yeah I got all this money coming in.
I can buy all these tools right those tools will add up and one time one month you will be like we're going money go and they'd be like Oh, I bought those tools and those tools right? So it's very important to have good good bookkeeping practices from the very beginning because it's very hard to start down the road Like I did that Is one of the very important things to do is book Keith and make sure that your numbers are correct if you are interested more Into how I market handyman business or how high priced handyman jobs or how even how I started my business and my business plan check out I have a whole bunch of courses over at handyman journey.com Also with a free ebook and we also have a great Facebook group on Facebook called the handyman journey mastermind group I will link that in the description below as well.
We would love for you to join that It's full of I think it's up to like two or three thousand people right now Full of handyman from all around the world that really know their stuff There's some handyman in there that have been doing it for twenty thirty years And then there's also some handyman that are just starting out or looking to start looking to start out So very great resource. I would love for you to join that So again if you have liked this video Please subscribe To this channel like this video and leave me a comment in the comment section below like this video It helps the video get seen by many other people So we thank you so much for tuning in and we'll see you guys on the next video