Alabama Handyman License Requirements (Step-by-Step Guide)

If you have the skills and passion, starting a handyman business in Alabama can be a great way to turn your expertise into steady income. But before you grab your tools, it’s important to understand the licensing rules and regulations.

A license allows you to legally operate your business and ensures your work stays within the law. It also builds trust with clients, giving you credibility and allowing you to take on higher-paying, more complex jobs.

That said, not all types of handyman jobs require a license. So how do you know if you need one? Our guide breaks down everything you need to know, including the types of work that need licensing and the steps to get started.

Alabama handyman license requirements at a glance

The table below outlines key facts about Alabama handyman licensing, including the cost threshold per project. 

Do you need a handyman license in Alabama?

Alabama doesn’t require a license for handyman work unless the project is worth over $100,000, or $5,000 for swimming pool construction. If your work hits these thresholds, you’ll need a general contractor license. Even subcontractors working under a licensed contractor need a license if their portion exceeds these limits.

Here are some examples of jobs that may require a contractor license:

• Large-scale renovations or construction work
• Structural repairs or major upgrades
• Complex commercial or multi-unit projects

What can a handyman do without a license in Alabama?

Handyman can do a wide variety of general maintenance and repair tasks without a license, such as:

• Basic carpentry
• Drywall repair
• Furniture assembly
• Landscaping
• Painting
• Window and door installation

Consequences for working without a contractor license in Alabama

Working without a proper license is against the law and comes with serious consequences, including heavy fines and even potential jail time. This puts your business at risk and damages your reputation.

Let’s look at these consequences in detail.

• Fines and penalties: If you violate licensing laws, the Alabama Licensing Board for General Contractors can impose a steep fine of up to $6,000. You could also be sentenced to jail for up to 12 months.
• Reputational damage: A licensed handyman is more credible than an unlicensed one. If your business is unlicensed, clients may not trust you enough to hire you or recommend you to others in their network.
• Loss of legal protection: If a client refuses to make payment after a project is complete, the Alabama state law might not offer you recourse without proper licensing.
• Potential misdemeanor liability: State laws may also penalize an awarding authority that hires an unlicensed handyman for a job requiring licensing. They can be charged with a misdemeanor, which could mean imprisonment and fines. As a result, corporate clients are unlikely to hire an unlicensed contractor for a large project.
• Business closure: Running an unlicensed business always carries the risk of forced closure. State authorities can issue a cease and desist order, forcing you to halt operations until you obtain the necessary handyman licenses and permits.

Types of handyman work that may require additional licensing

Certain trades are strictly regulated and demand specialty licenses, exams, apprenticeships, or certifications. These include:

• Electrical work
• Gas fitting
• HVAC repair and installation
• Plumbing
• Roofing
• Structural framing
• Welding

Tip: Check with your city or county for local ordinances, as some areas have additional requirements.

Alabama contractor license requirements: Age, education, and training

If your work requires a general contractor license, you’ll need to meet the following criteria:

• Be a U.S. citizenship or lawful resident
• Provide a current financial statement from a certified or licensed accountant (no more than 12 months old)
• Show proof of owning a legitimate business in Alabama
• Have a minimum net worth and working capital of $10,000
• Demonstrate relevant work experience by completing a Principal Individual Questionnaire
• Submit three reference forms from any of the following: licensed general contractors, registered professional engineers, registered architects, or other qualified professionals approved by the Board
• Submit an organizational chart showing key business roles

You can take the Alabama Business Law Exam and the Alabama General Contractor’s Trades Exam only if you meet these qualifications. You need to score at least 70% to pass each exam. State-approved training programs, like those offered by Builders License Training Institute, will walk you through exam topics to help you prepare.

These programs have the following requirements for enrollment:

• Be at least 18 years old
• Pass a general aptitude test
• Have a high school diploma or the General Educational Development credential

Recommended skills

Most homeowners would rather hire one person for different jobs than call in a specialist for each task. If you can fix a sink, paint a wall, and install a ceiling fan all in one visit, clients will keep you on speed dial for future projects.

Here are high-demand skills you should have as a handyman:

• Appliance installation and repair: Installing kitchen appliances, HVAC units, and laundry equipment
• Carpentry: Building and repairing wood fixtures, cabinets, and furniture
• Drywall repair: Patching holes, fixing cracks, and smoothing surfaces
• Electrical work: Installing electrical components and troubleshooting power issues
• Landscaping: Mowing lawns, tending to flowers, and cleaning yards
• Painting: Painting interior and exterior walls, furniture, and fittings
• Plumbing: Repairing leaky faucets and sinks, unclogging drains, and installing fixtures

You’ll also need good social skills to build strong customer relationships and encourage repeat business.

Contractor license cost in Alabama

It costs $300 to get a general contractor license in Alabama. Aside from this fee, you must pay for two compulsory exams:

• $96 for the first exam
• $192 for the second exam

If you enroll in a training program, you will likely pay more than $250 per course. This drives up licensing costs to at least $800.

How to apply for a contractor license in Alabama

General contractor licenses are issued at the state level in Alabama, specifically by the Alabama Licensing Board for General Contractors. If you qualify for a license, follow these steps to apply:

Download the application form

Visit the Alabama Licensing Board for General Contractors’ official website and select “Prime Contractor Application” from the list of forms. Click on the link to download the form as a PDF file. The first two pages of the document have all the information and instructions you need. Read carefully before completing the form.

Submit your application

Send your application, the necessary paperwork, and a nonrefundable application fee of $300 to the Board. This submission must be made at least 30 days before the quarterly board meeting. Submitting after the deadline pushes your application to the next meeting for review. You can avoid this delay by staying updated on exact meeting dates and deadlines.

Register for the exams

After submission, the Board reviews your application and decides whether you can move forward. If your application is approved, register for the business law and trade exams administered by Psychological Services Inc. 

Send your exam scores

You need a score of at least 70% to pass the Alabama Business and Law Exam and any specialty trade exam. Send your exam scores to the Board for final review and approval.

Transferring your contractor license to or from Alabama

If you’ve been licensed in another state for at least one year, you may be able to transfer your contractor license to Alabama. The state has reciprocity agreements with:

• Arkansas
• Louisiana
• Mississippi
• North Carolina
• Tennessee

This waives the trade portion of the exam, but you’ll still need to comply with all other licensing requirements, including passing the Business and Law Exam.

Follow these steps to transfer your handyman license to Alabama:

1. Confirm if your license in any of the reciprocal states is at least one year old and is still in good standing.
2. Fill out the first section of the Out of State License Verification form on page 17 of the Prime Contractor Application.
3. Mail the form to the appropriate state licensing board and wait for them to sign and verify the information.
4. Once the verifying state returns the completed form, submit it to the Alabama Licensing Board for General Contractors.
5. Allow 30 days for review and approval.
6. Take the Business and Law Exam.

How to renew your contractor license in Alabama

You’ll need to renew your contractor license every year in Alabama. Submit the following documents:

• Current print screen from the Alabama Secretary of State
• Proof of liability insurance
• Certificates from the appropriate Alabama State Board
• Current financial statement not more than one year old
• A completed renewal form

Renewal costs $200.

What happens if your license expires?

If your license expires, you have a 90-day grace period, after which the Board imposes a late penalty for renewal.

If you don’t renew your expired license within the next year, you’ll need to apply for a new license to continue working legally in Alabama. Applying for a new license means retaking the Business and Law Exam and the trade exams and achieving passing scores.

As a best practice, renew your license before it expires. That way, you’ll avoid the legal consequences of being unlicensed.

Requirements to start a handyman business in Alabama

If you’re ready to grow beyond being an employee, here’s a step-by-step guide to starting your own handyman business:

1. Pick a unique business name that’s easy to remember and accurately reflects your brand.
2. Choose a business structure: sole proprietorship, limited liability company (LLC), partnership or corporation.
3. Register with the Alabama Secretary of State.
4. Get insurance coverage.
5. If applicable, obtain local permits from your city or county.
6. Get a general contractor license from the Alabama Licensing Board for General Contractors, as well as any trade licenses for specialty services.

Insurance and bonding needs

If you run your own handyman or contracting company in Alabama, you need certain types of insurance to protect yourself, your business, and your clients:

• General liability insurance: Required to submit your licensing application to the Board. Protects you from financial loss if a client claims bodily injury or property damage resulting from your work.
• Workers’ compensation insurance: Required by the Alabama Department of Labor if you have five or more employees. Covers lost wages and medical expenses if an employee is injured on the job, and protects your business from related lawsuits.
• Alabama contractor license bond: Often required depending on your location. Acts as a financial guarantee to protect customers if you fail to meet legal, ethical, or contractual obligations (e.g., incomplete work, building code violations, unpaid subcontractors). Bond amounts typically range from $1,000 to $15,000. Check with local municipalities for specific requirements and pricing.

Tips for growing your handyman business in Alabama

Growing a handyman business takes more than technical skill. You need the right strategy, strong customer relationships, and a unique value proposition that keeps clients coming back.

Here are some tips:

• Define your target audience: Focus on a specific group, like homeowners, businesses, or seniors needing regular maintenance, to make your marketing more effective.
• Market your business: Combine online tactics like social media, search engine optimization (SEO), and pay-per-click (PPC) ads with offline strategies such as networking events, print ads, and community projects.
• Offer customer incentives: Use referral bonuses, first-time customer discounts, seasonal offers, and multiservice discounts to encourage repeat business.
• Provide a superior customer experience: Deliver on promises, improve communication skills, follow up with clients, and offer self-service options like a help center.
• Leverage technology to stay organized: Use software or apps to manage scheduling, track projects, and communicate with clients efficiently, reducing errors and saving time.

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FAQ

Does a handyman need a license in Alabama?

A handyman doesn’t need a license in Alabama unless a project is valued over $100,000 or involves specialty work such as plumbing, electrical, or HVAC. The limit for unlicensed swimming pool construction is $5,000.

How much can a handyman charge in Alabama?

Handyman rates range between $50 and $150 per hour. However, this depends on your expertise, the job’s complexity, and whether specialized tools are needed. Your location also determines how much you charge. Urban areas usually have high rates due to the high cost of living.

Can I do plumbing or electrical work as a handyman?

Yes, you can do minor plumbing and electrical work as a handyman. This includes replacing a light fixture, fixing leaky faucets, and unclogging drains. However, major plumbing and electrical work, like handling a faulty gas line and wiring a home, can only be done by licensed professionals.

What is the difference between a handyman and a general contractor in Alabama?

A handyman does minor repair and maintenance tasks like painting walls and assembling furniture. A general contractor handles more complex projects that require getting licensed and hiring subcontractors, such as remodeling a kitchen or bathroom, building a home addition, or managing a multi-unit property renovation.