How to structure a handyman business?

Author: Emilio Mosciski  |  Last update: Thursday, May 1, 2025

11 tips for starting a handyman or handywoman business
  1. Research and develop a business plan. ...
  2. Define your target market. ...
  3. Choose a business structure. ...
  4. Apply for a business license. ...
  5. Determine which handyman services you will offer. ...
  6. Open a business bank account. ...
  7. Determine what equipment you will need. ...
  8. Startup costs.

What is the best business structure for a handyman?

Like a sole proprietorship, it may not give you all the protections your handyman business may need. The Limited Liability Company (LLC) is ideal for most handyman businesses. An LLC is easy and inexpensive to set up, and it has the least administrative requirements of any formal business entity.

How do I organize my handyman business?

The basics of bookkeeping for a handyman business
  1. Step 1: Organize your financial documents. ...
  2. Step 2: Track revenue. ...
  3. Step 3: Track expenses. ...
  4. Step 4: Implement a budget. ...
  5. Step 5: Generate professional proposals. ...
  6. Step 6: Streamline tax preparation. ...
  7. 10 ways to find new clients.

What do most handymen charge per hour?

Most handymen charge between $50 and $80 per hour, making an average of $150 to $600 per job. Rates depend on their specialty, experience, level of education, and whether the handyman is insured, requires specialized equipment, or services rural locations.

How profitable is a handyman business?

Some handyman businesses need a general business license and potentially a contractor's license, depending on the scope of work. Profit margins typically range from 15% to 50%, depending on the specific services provided and regional pricing trends.

How To Start a Profitable Handyman Business

What is the highest paying handyman job?

High Paying Handyman Jobs
  • Shovel Operator. Salary range: $69,000-$69,500 per year. ...
  • Tradesman. Salary range: $44,000-$55,000 per year. ...
  • Jack of All Trades. Salary range: $38,000-$54,500 per year. ...
  • Gardener. Salary range: $36,000-$50,500 per year. ...
  • Swamper. Salary range: $37,000-$50,500 per year. ...
  • Garden Center Manager.

What are the cons of being a handyman?

Con: Jobs Come with Short Notice

Again, something that seems like a good thing to one person can be a burden for another. Part of the problem that some handymen find is that they are too much in demand. Some jobs can come on short notice because a homeowner has an emergency that needs immediate attention.

Why are handymen so expensive?

Typically, the more specialized the skill required, the higher the hourly rate. Just like in any other profession, a handyman's experience and skill level can influence their rates. A seasoned handyman who has been in the business for decades might charge more than someone who's just starting out.

What is the rate for a general handyman?

General rate means a rate (other than a separate rate) made and levied by a local government equally on the unimproved value of all rateable land in its area.

How much should a self-employed carpenter charge per hour?

A carpenter's hourly rates are $30 to $100 per hour for a standard self-employed carpenter and $100 to $200 per hour for a skilled master carpenter. Framing, trim, and finish carpenters perform different services and vary in price.

How to write a business plan for a handyman?

How to Write a Handyman Business Plan?
  1. Executive Summary. The executive summary is a one- or two-page overview of your business and your plans for it. ...
  2. Your Services. This section is about more than just the services you are providing. ...
  3. Your Target Market. ...
  4. Marketing & Sales. ...
  5. Company Organization. ...
  6. Financial Projections.

Is it possible to scale a handyman business?

Scaling a handyman business is no small task, but with the right approach, it's achievable. The first step is understanding your landscape. Be aware of your situation and ready yourself for it. A robust business plan can be your roadmap to success.

What makes a good handyman?

A trustworthy handyman is: precise, punctual, and detail-oriented. sets accurate/realistic deadlines for all projects. proficient in a variety of tasks, with perhaps a few specialties.

What is the tax code for a handyman?

Definition of NAICS Code 236118: This U.S. industry comprises establishments primarily responsible for the remodeling construction (including additions, alterations, reconstruction, maintenance, and repair work) of houses and other residential buildings, single-family, and multifamily.

How to start LLC for handyman business?

How to Start a Handyman LLC
  1. Choose an LLC name. ...
  2. Designate a registered agent. ...
  3. File your formation documents with the state. ...
  4. Acquire an EIN. ...
  5. File a BOI Report. ...
  6. Create an LLC operating agreement. ...
  7. Create a financial infrastructure. ...
  8. Handle taxes, licenses, and permits.

How much does it cost to start a handyman business?

Starting a handyman business typically requires an initial investment of US$5,000 to US$25,000. Reliable vehicle ($5,000 - $20,000). Incorporating your business may cost an additional $500 to $1,000.

What do handymen charge per hour?

A handyman charges $50 to $80 per hour or $320 to $600 per day on average, plus the cost of materials. A handyman may have a minimum charge of $75 to $200 or a minimum number of hours. Common services may have flat-rate handyman pricing, including both the labor and materials.

What is the profit margin for a handyman?

If you're in the home improvement industry, you're going to want your profit margins to sit around 15% on the low end and 45% on the high end. Of course, this can also depend on your location, the type of jobs you take, and more. If you decide to set your margin between 15% and 45%, you'll usually be in good shape.

Is a handyman cheaper than a contractor?

A handyperson is the right pro for smaller odd jobs around your home. Contractors manage large renovation projects and employ subcontractors. Hiring a handyperson is less expensive at $50 to $150 per hour. Contractors charge 10% to 20% of total project costs.

Is there a high demand for handyman?

According to Future Market Insights, the handyman services industry in the United States is experiencing rapid growth. The market, valued at approximately $390.9 million in 2023, is projected to reach $1.8 billion by 2033, growing at a compound annual growth rate (CAGR) of 16.5%.

Is it common to tip a handyman?

In some places, a handyman earns more than $100 an hour and doesn't expect a tip. However, if you've found a go-to helper who frequently does odd jobs around the house for, say, $20 an hour—change high lightbulbs, move heavy objects, wax floors— then a holiday or post-project gift equal to his daily fee is appreciated.

Do handyman pay taxes?

Self-Employment Taxes and Estimated Payments for Handyman and Odd-Job Income. As a self-employed handyman, you have to pay self-employment tax on your net profit. This tax — currently set at 15.3% — includes amounts to fund Social Security and Medicare.

What is the difference between a journeyman and a handyman?

In contrast to a handyman, a journeyman or master plumber is a licensed professional in his or her line of work. They have gone through an apprenticeship, passed qualification exams, and meet all of the criteria to prove competency in their trade.

Is being a handyman a good side hustle?

Offering handyman services can be a lucrative side hustle for skilled DIY enthusiasts. Handyman tasks include plumbing, painting, carpentry, and smart home upgrades. Earnings range from $20 to $100 per job, with experienced handymen making $50,000-$100,000 annually.

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