Becoming a handyperson in North Carolina seems relatively popular. According to the U.S. Bureau of Labor Statistics, over 45,000 general maintenance and repair professionals call North Carolina home.
If you’re thinking about starting a handyman business as a side gig or a full-time job, you may be wondering, about licensure and insurance information. Read through this guide covering key topics about handyman work and contractor licensing, including:
Before you start working in this state, you need to find the answer to one question: Is a handyman license required in North Carolina? The answer is no because the state does not offer one.
Although there is no handyman license in North Carolina, you may need a North Carolina general contractor license if your work involves major projects worth more than $40,000. The North Carolina Licensing Board for General Contractors issues these licenses.
Because the state does not require a handyman license, NC workers in this profession can take on a wide variety of projects as long the value of each job stays below $40,000.
Handypeople usually work on minor repairs and maintenance, like fixture replacements, furniture assembly and small carpentry tasks. Most handyman jobs don’t require the help of additional employees.
Your projects must not involve any plumbing or heating work, as these two trades require licensing in the state of North Carolina.
Contractors typically work on much larger construction projects involving major renovations to a property. This could include adding a new room, building a deck and other projects that usually require a building permit.
The chart below offers helpful examples to determine whether your work categorizes you as a handyman or general contractor.
If you want to offer your skills for larger projects, you can get a contractor license from the state licensing board. To apply for a North Carolina general contractor license, you must fulfill the following requirements:
When you fill out your license application, you must select a limitation based on your business finances. There are three limitation categories available:
Learn more about contractor surety bonds.
Complete the following steps to get your North Carolina general contractor license:
Before you begin the application process, make sure to register your business with the North Carolina Secretary of State. For the application, you must have copies of the Articles of Organization, Articles of Incorporation or Certificate of Authority.
When filling out the application, note which license classification you plan to test for, such as Building Contractor or Residential Contractor, and select your license limitation. You must also include three character references.
Upon approval of your application, you may schedule your licensing exam through the test administrator, PSI. You must take the exam that corresponds to your chosen license classification and achieve a score of 70% or higher to pass.
In addition to the PSI exam, the Board also accepts a passing score on the National Accredited Building Examination administered by the National Association of State Contractors Licensing Agencies (NASCLA).
North Carolina general contractor licenses expire on January 1 of each year. You may renew your license as early as October of the year prior. The Board issues licenses year-round, so you must renew licenses issued in December for the following year.
You must complete eight hours of continuing education to qualify for renewal. When renewing your license, you must provide a current financial statement.
Protecting your business is a top priority whether you work as a handyperson or a licensed general contractor. With the right insurance coverage, your business can remain financially stable even if accidents happen.
Review the following types of business insurance recommended for handypeople and general contractors in North Carolina.
General liability insurance helps cover costs related to certain types of accidents involving a third party, such as damage to someone else’s property or an injury to someone other than an employee.
Many handyman and contractor clients request proof of general liability insurance coverage before they agree to hire someone for a job.
Workers’ compensation insurance provides important protections for your business if workplace injuries occur. This coverage helps pay for medical expenses, lost wages and other benefits if an employee gets hurt on the job.
In North Carolina, all businesses with three or more employees must have workers’ compensation insurance or qualify as self-insured employers.
Most handypeople and contractors have work gear that is essential for their projects. Tools and equipment insurance protects that gear by helping to pay for repairs or replacements for damaged or stolen items.
If you use a work vehicle to drive to different job sites, you should have commercial auto insurance. If you get into an accident while driving your vehicle for work, this coverage can help pay for towing, repairs, rental reimbursement and other related expenses.
North Carolina requires all vehicles to have insurance coverage. The minimum coverage amounts are:
Commercial property insurance helps cover damage or vandalism to a property you own or rent and any inventory and equipment stored in that location.
NEXT Insurance offers affordable and convenient small business insurance options for handypeople and contractors. We customize every insurance package to help protect your business.
You can start a quote from any computer or mobile device, compare coverage options and get a certificate of insurance for your business. Log in anytime to download and share unlimited COIs at no extra cost or make adjustments to your coverage.
Ready to get started? Get an instant quote online from NEXT today.
Do you have handyman projects outside North Carolina? Find out which states require licenses in our summary of handyman license requirements.
This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.
Ashley Henshaw was a contributing writer at NEXT. She specializes in small business topics, covering everything from insurance and branding to web hosting and cryptocurrency.
Her work has appeared in The Huffington Post, AOL City's Best, Citysearch, USA Today, The San Francisco Chronicle and Livestrong.
