Michigan Handyman License Requirements: The $600 Rule, LARA License & Exam (2026)

If you are planning to do handyman work in Michigan, licensing is a real requirement you need to understand up front. Unlike states that leave handyman work unregulated, Michigan requires a state license for most paid residential work above a low dollar threshold. The good news: the path is clear, the threshold is easy to understand, and getting licensed opens the door to larger, better-paying jobs.

This guide pulls every requirement, fee, and threshold directly from the official sources: the Michigan Department of Licensing and Regulatory Affairs (LARA) and the Michigan Occupational Code. No outdated numbers. No guesswork.

Quick Answer: Do You Need a Handyman License in Michigan?

Yes – in Michigan, you need a state license for most residential work on projects worth $600 or more. The license is issued by the Department of Licensing and Regulatory Affairs (LARA), and there are two types: the Residential Builder license and the Maintenance & Alteration (M&A) Contractor license.

If you contract with a property owner to repair, alter, improve, or build a residential structure and the total project value (labor plus materials) is $600 or more, you must be licensed. Below $600, you are generally exempt – but Michigan law specifically prohibits splitting a larger job into smaller contracts to dodge the requirement. Because most handyman jobs quickly exceed $600, licensing is effectively necessary for anyone running a real handyman business in Michigan.

Who Regulates Handyman Licensing in Michigan?

Handyman and residential contractor licensing in Michigan is handled by the Department of Licensing and Regulatory Affairs (LARA), specifically its Bureau of Construction Codes, Licensing Division. LARA licenses Residential Builders and Maintenance & Alteration Contractors, administers the education and exam requirements, and enforces the licensing law.

Contact LARA – Bureau of Construction Codes:

• Website: michigan.gov/lara and michigan.gov/bcc
• Licensing Division phone: (517) 241-9316
• Business registration (Corporations Division): (517) 241-6470

The governing law is Article 24 of the Michigan Occupational Code (Public Act 299 of 1980), codified at MCL 339.2401 through 339.2404. Note that separate skilled trades – electrical, plumbing, and mechanical – are licensed under their own articles of the skilled trades regulation act, not under the builder license.

The $600 Rule: When You Need a License

The key number for a Michigan handyman is $600. It is the threshold at which residential work stops being exempt and starts requiring a state license.

What Requires a License

Under Michigan law, a person who contracts with a property owner to perform residential construction, repair, alteration, addition, improvement, or demolition – where the total project value (labor, materials, and all other items) is $600 or more – must hold a Residential Builder or M&A Contractor license. This applies to work such as:

• Remodeling and renovations
• Repairs to residential structures
• Additions and improvements
• Building garages
• Pouring concrete on residential property
• Demolition of residential structures

Crucially, Michigan law includes an anti-evasion provision: you cannot break a single larger project into multiple contracts each under $600 to avoid the license requirement. If the overall undertaking is $600 or more, the license is required.

Who Is Exempt

Michigan’s Occupational Code (MCL 339.2403) exempts several categories from the license requirement:

• Homeowners building or renovating a structure on their own property for their own use
• Subcontractors who work solely under contract with a licensed residential builder or M&A contractor
• Separately licensed tradespeople (electrical, plumbing, mechanical) performing only work within their licensed trade
• Government representatives acting within their official duties
• Small projects where the total contract price is less than $600 (subject to the anti-evasion rule)

If none of these exemptions apply and you are doing residential work for compensation, you need a license.

Residential Builder vs. Maintenance & Alteration License

Michigan offers two license types, and choosing the right one depends on the scope of work you plan to do.

Residential Builder (RB) License

The Residential Builder license is the broader, general-contractor-style credential. It authorizes you to build, renovate, repair, demolish, or add to residential structures – including single-family homes, townhouses, and combination residential/commercial structures. A residential builder can act as the general contractor on a project, coordinating and hiring subcontractors and managing the full scope of work. This is the license to choose if you want to build new homes or run full remodeling projects.

Maintenance & Alteration (M&A) Contractor License

The Maintenance & Alteration Contractor license is narrower and is often the right fit for handymen. It covers the repair, alteration, improvement, and demolition of existing residential structures, plus building garages and pouring concrete on residential property. Rather than a blanket license, the M&A license is issued by specific trade or craft categories – you are licensed only in the trades you qualify for and pass an exam in. Common M&A categories include carpentry, and other finish and repair trades. You must pass a trade-specific exam for each category you want on your license.

For many handymen who focus on repairs and improvements rather than building new homes, the M&A Contractor license in the relevant trade categories is the appropriate choice.

Michigan Handyman License Requirements

To earn either license, you must meet three core requirements.

Prelicensure Education

All applicants must complete 60 hours of approved prelicensure education before taking the exam or submitting an application. This requirement has been in place since June 1, 2008. The 60 hours must include at least 6 hours in each of these areas:

• Business management, estimating, and job costing
• Design and building science
• Contracts, liability, and risk management
• Marketing and sales
• Project management and scheduling
• The current Michigan Residential Code and construction safety standards

The education must be completed through a program on LARA’s approved course list.

The PSI Exam

After completing your education, you must pass an exam administered by PSI. Residential Builder and M&A applicants take exams appropriate to their license type (M&A applicants take a trade-specific exam for each category). You will receive an authorization-to-test letter from LARA after your application is processed. Download the Candidate Information Bulletin from PSI for the specific exam you need.

Application and Good Moral Character

Submit your license application with the $195 nonrefundable fee, a copy of your driver’s license or state ID, and your prelicense course certificate of completion. Michigan also requires applicants to demonstrate “good moral character.” If you have prior criminal convictions, it is wise to contact LARA’s Bureau of Construction Codes before starting your education, since convictions are reviewed as part of the process.

Michigan Handyman License Requirements at a Glance

Requirement	Detail
License required	Yes – for residential work $600 or more
Issuing body	Michigan LARA, Bureau of Construction Codes
License types	Residential Builder / Maintenance & Alteration Contractor
Threshold	$600 (labor + materials)
Prelicensure education	60 hours (6 hours in each of 6 areas)
Exam	PSI exam (trade-specific for M&A categories)
Application fee	$195
License term	3 years
Continuing competency	Yes – 21 hrs per 3-yr cycle (1st 6 yrs); 3 hrs per cycle after 6 yrs
Reciprocity	None
Governing law	Article 24, Michigan Occupational Code (MCL 339.2401-2404)

How to Get Your Michigan Contractor License: Step by Step

Here is the practical path to earning your Michigan Residential Builder or M&A Contractor license.

Step 1 – Complete 60 Hours of Prelicensure Education

Enroll in a LARA-approved 60-hour prelicensure course, covering the six required topic areas. Complete the course and obtain your certificate of completion – you need it before you can test or apply.

Step 2 – Pass the PSI Exam

Submit your application and $195 fee to receive your authorization-to-test letter, then register for the exam through PSI. Study the Candidate Information Bulletin for your license type and pass the exam. M&A applicants take a trade-specific exam for each category they want.

Step 3 – Submit Your Application and Fee

Apply to LARA either online through its licensing portal or by mailing a printed application. Include a copy of your driver’s license or state ID, your prelicense certificate of completion, and the $195 nonrefundable fee.

Step 4 – Register Your Business

Register your business with the Michigan Department of Treasury for tax purposes. If you operate under a DBA (assumed name) or as a company, register with the appropriate state division – the Corporations Division handles company registration at (517) 241-6470.

Step 5 – Get Insurance

While the state licensing statute does not set a specific general liability minimum for individual builders, general liability insurance is essential in practice – clients, general contractors, and lenders expect it, and it protects your business. Carry workers’ compensation if you have employees.

Michigan Handyman License Cost

Cost Item	Amount
License application fee	$195
60-hour prelicensure education	Varies by provider (course fee)
PSI exam fee	Set by PSI (paid at registration)
Business registration	Varies
General liability insurance	Premium – varies

The core state cost is the $195 application fee, plus the cost of your 60-hour prelicense course (which varies by education provider) and the PSI exam fee. Compared with the earning potential of licensed work, these are modest one-time costs. Fees can change, so confirm current amounts with LARA before applying.

Michigan Contractor License Renewal

Michigan Residential Builder and M&A Contractor licenses are issued for a three-year term. To keep your license active, you must submit a renewal application, pay the LARA renewal fee, and confirm you have met the state’s continuing competency requirements (Michigan’s term for continuing education, required under MCL 339.2404b).

The number of continuing competency hours you need depends on how long you have been licensed:

• Licensed less than 6 years (first two 3-year cycles): You must complete 21 hours of LARA-approved continuing competency activities per 3-year cycle, with a minimum of 3 hours each year. This must include at least 1 hour of building codes and laws, 1 hour of safety, and 1 hour of changes in construction and business laws, with the remaining hours in other approved topics.
• Licensed 6 years or more: The requirement drops to 3 hours per 3-year cycle – 1 hour of codes, 1 hour of safety, and 1 hour of legal/regulatory updates.

You do not submit your course certificates to LARA at renewal – you attest that you completed the requirement – but you must keep documentation for at least 5 years in case you are selected for an audit. Michigan also requires licensees to keep a current copy of the Michigan Residential Code. Letting your license lapse means you cannot legally perform licensed work; if it stays expired too long, you may have to reapply, so renew before your three-year expiration date.

Insurance Requirements for Michigan Handymen

Michigan’s builder licensing statute focuses on education and examination rather than a mandated insurance minimum for individual licensees, but insurance is still essential:

General Liability Insurance: Not set at a specific statutory minimum for individual builders, but strongly recommended and expected by clients, general contractors, and lenders. A solid liability policy protects your business from the cost of accidents and property damage, and many customers will not hire an uninsured contractor.

Workers’ Compensation Insurance: Required under Michigan law if you have employees. If you operate solo with no employees, confirm your obligations with the Michigan Workers’ Disability Compensation Agency.

Builder’s Risk and Other Coverage: Depending on the projects you take on, builder’s risk insurance and commercial auto coverage may also be worth carrying. Talk to an insurance agent who understands the construction trades to build the right program for your business.

Does Michigan Have Contractor License Reciprocity?

No – Michigan does not hold reciprocal licensing agreements with any other state. Even if you are licensed as a contractor elsewhere, you must meet all of Michigan’s requirements – including the 60 hours of prelicensure education and the PSI exam – to obtain a Michigan Residential Builder or M&A Contractor license.

Out-of-state individuals and companies can be licensed in Michigan, but they must complete the full Michigan process and, for non-residents, submit a Consent to Service of Process form. Out-of-state companies also register with the Michigan Corporations Division. There is no shortcut based on an out-of-state license.

Specialty Trade Licenses in Michigan

A Residential Builder or M&A license does not cover the skilled trades. Electrical, plumbing, and mechanical work each require separate state licenses under Michigan’s skilled trades regulation act:

Trade	Regulator
Electrical	Michigan LARA – Electrical Administrative Board
Plumbing	Michigan LARA – Plumbing Board
Mechanical / HVAC	Michigan LARA – Mechanical Division

If your handyman work involves any of these trades and you are not personally licensed in that trade, you must hire a properly licensed electrical, plumbing, or mechanical contractor to perform it. A residential builder coordinates these trades but does not perform their licensed work without the separate credential.

Penalties for Unlicensed Contracting in Michigan

Michigan’s Occupational Code makes it illegal to work as a residential builder or M&A contractor without a license when one is required. Consequences of unlicensed contracting include:

• Legal penalties – Operating without a required license violates the Occupational Code and can bring fines and enforcement action
• No right to sue for payment – A significant Michigan consequence is that an unlicensed contractor generally cannot use the courts to collect payment for work that required a license, even if the work was done well
• Civil liability – Unlicensed contractors face greater exposure in disputes over workmanship or contracts
• Reputational harm – Homeowners are encouraged to verify a contractor’s license, so operating unlicensed cuts you off from a large share of the market

The inability to enforce a contract or collect payment is one of the most serious practical risks – it means an unlicensed contractor can complete a large job and have no legal recourse if the customer refuses to pay. You can verify a license through LARA’s online license search.

How Much Does a Handyman Make in Michigan?

Michigan’s large housing stock, active remodeling market across the Detroit, Grand Rapids, and Lansing metros, and strong seasonal repair demand keep skilled handymen busy. According to the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), general maintenance and repair workers (SOC 49-9071) in Michigan earn a median wage of $22.87/hour ($47,580/year), with a mean (average) of $24.22/hour ($50,380/year). That median runs about 2% below the national median of $48,620 for the same occupation. Total employment in this category statewide is approximately 39,490 workers – one of the larger handyman workforces in the country.

Note: BLS OEWS data covers employed workers and does not include self-employed handymen, who typically earn more through higher hourly billing rates. For a broader look at what handymen earn across experience levels and specialties, see this handyman salary guide.

Michigan Handyman Salary by Experience Level

Experience Level	Hourly Rate	Annual Wage
Entry-level (10th percentile)	$16.85/hr	$35,050
Lower-mid (25th percentile)	$18.95/hr	$39,420
Median (50th percentile)	$22.87/hr	$47,580
Upper-mid (75th percentile)	$28.60/hr	$59,490
Top earners (90th percentile)	$33.93/hr	$70,570

Is Getting Licensed Worth It in Michigan?

In Michigan, licensing is not optional for real handyman work – it is legally required above $600, and unlicensed contractors cannot even sue to collect payment. But beyond compliance, the license is a strong business asset. Licensed builders can take larger, higher-value projects, act as general contractors, advertise their credential, and win the trust of homeowners who check for a license. The one-time cost of education, the exam, and the $195 fee is modest against the income a licensed contractor can earn on remodels and additions that unlicensed operators legally cannot touch.

Tips for Growing Your Handyman Business in Michigan

Get licensed before you scale. Because the $600 threshold is low and unlicensed contractors can’t collect payment through the courts, the license is your foundation. Complete the 60-hour course and pass the exam before taking on bigger jobs.

Choose the right license type. If you mainly do repairs and alterations, the M&A Contractor license in your trade categories may be the right fit; if you want to build or run full remodels, choose the Residential Builder license. Pick based on the work you actually plan to do.

Never split contracts to dodge the threshold. Michigan’s anti-evasion rule specifically prohibits breaking a job into sub-$600 contracts. It is not a loophole – it is a violation that can cost you your ability to collect payment.

Carry general liability insurance. Even though the state doesn’t set a minimum for individual builders, clients expect it and it protects your business from costly claims.

Feature your license in your marketing. Michigan homeowners are encouraged to hire licensed contractors and can verify your license online. Put your license type and number in your marketing – it is a trust signal that unlicensed competitors cannot match.

Build your online presence. Most Michigan homeowners search online before hiring. A Google Business Profile with strong reviews plus a verified, active license is the single highest-return marketing investment for a local handyman business. Make it easy for clients to book you with online booking.

Use the right tools to run the business. As your handyman business grows, manual scheduling and invoicing become a bottleneck. Field service management software handles scheduling, customer communication, invoicing, and payment collection – so you spend your time on the work, not the paperwork.

Michigan vs. Neighboring States: How Does Licensing Compare?

State	License Required?	Threshold	Exam + CE
Michigan	Yes – Residential Builder / M&A license	Over $600	Exam + 60-hr education
Ohio	No statewide GC license	Local rules apply	HVAC/electrical/plumbing state-licensed
Indiana	No statewide GC/handyman license	Local rules apply	Plumbing only – state license
Illinois	No statewide GC/handyman license	Local rules apply	Roofing/plumbing only – state license
Wisconsin	Dwelling Contractor registration	All residential construction	No exam for registration

Michigan is one of the stricter Midwest states for handyman licensing: it requires a state license with education and an exam for nearly all residential work above a low $600 threshold. That is more demanding than neighboring Ohio, Indiana, and Illinois, which leave general contracting to local rules. The trade-off for Michigan contractors is a clear statewide credential and the legal ability to enforce contracts – something unlicensed contractors lose entirely.

Ready to Build Your Michigan Handyman Business?

Michigan asks for real credentials – education, an exam, and a license – but that structure works in your favor once you are licensed. The license lets you legally take jobs over $600, act as a general contractor, enforce your contracts, and win the trust of homeowners who look for a license. Complete the course, pass the exam, stay insured, and you can build a strong, legitimate handyman business across the state.

We have built tools specifically for handymen – scheduling, invoicing, customer management, and payment collection all in one place so you can spend more time on jobs and less time on paperwork.

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