Pennsylvania handyman license and insurance requirements

If you’re thinking about starting a handyman business in Pennsylvania, you’re in luck. Pennsylvania is known for being business-friendly, with plenty of resources and support for entrepreneurs and small businesses.

Pennsylvania, or the Keystone State as it’s often called, is also known for having less bureaucracy for handypersons, which is a big plus. But, just like any other state, Pennsylvania has its own rules when it comes to business licenses and insurance for handymen—let’s take a look at what you need to know.

Learn more about the Pennsylvania handyman laws and insurance requirements. We’ll cover the following topics:

• Do you need a license to be a handyman?
• How to start a handyman business in Pennsylvania
• Pennsylvania handyman license renewal requirements
• Local Pennsylvania handyman business license requirements
• What kind of insurance does a handyman need?

Do you need a license to be a handyman?

Pennsylvania doesn’t have a specific license for handymen, but if your home improvement projects exceed $5,000 annually, you need to register with the Attorney General’s Office and obtain a Home Improvement Contractor (HIC) number.

HIC registration is only required for contractors who complete projects related to an existing private residence, such as repairs, renovations, demolitions and installations. Exemptions apply when working on projects for new homes.

Anyone who isn’t listed as a HIC can’t offer or perform home improvements. Not registering is against the law; unregistered handypersons can be sued and have to pay fines of $1,000 or more.

What’s the difference between a handyman and a general contractor?

Before we get into the details of working as a handyperson in Pennsylvania, it’s important to clarify what it means to be a handyman — because this will affect what type of insurance you will need.

A handyperson fixes small things or other minor projects. Most of the time, only one person is needed for these jobs.

If you work on bigger home improvement projects that are part of the structure, like building a deck or wiring a new kitchen that needs other people to help, you might be called a contractor and need the right license and insurance. However, because there is no statewide general contractor license in Pennsylvania, these both fall into the same category.

Typically, a handyperson is someone who can do a job on their own and works directly with homes. Here are some examples to help determine if the jobs you perform mean you’re a handyman or a general contractor.

How to start a handyman business in Pennsylvania

1. Get the right license

Pennsylvania does not issue a specific license for handypersons. However, if your home improvement projects exceed $5,000 per year, you need to register with the Attorney General’s Office and get a Home Improvement Contractor (HIC) number.

Any work on residences and home improvement—repairs, renovations, rehabilitations, alterations, modernization, installation, or demolition—means you might require a HIC, provided you exceed $5,000 annually.

For HIC registration, you will need to do the following:

1. Share details about your business:
   • Business structure (sole proprietor, partnerships, etc.)
   • Business name, address, and Federal Employer Identification Number, or EIN
2. Share personal information for each owner, officer, or partner:
   • Social security numbers, driver’s license info, and addresses
3. Identify shareholders with more than a 5% stake in the company.
4. If you have licenses in other areas, provide that information.
5. Describe your business.
6. Provide proof of general liability and workers’ compensation insurance.
7. Include a $50 check or money order payable to “Commonwealth of Pennsylvania.”

Once obtained, the HIC number should be included in all the subsequent advertisements, contracts, estimates, and proposals used in Pennsylvania.

2. Register your handyman business

The first step to registering a business in PA is to decide on the business type:

• Sole proprietorship
• Partnership
• Limited liability company
• Corporation

Once you’ve selected the business entity and business name, you can file online and register a handyperson business at Pennsylvania Business One-Stop Shop.

3. File a ‘Doing Business As’ if needed

If your business is going to operate under a name different than your legal name, you will need to register a fictitious name, often known as Doing Business As or DBA.

You can register a fictitious name online or by mail.

For online registration, visit the PA Business One-Stop Shop portal and complete the DBA there.

If you wish to register a fictitious name by mail, you will need to complete the Registration of Fictitious Name form and submit it to: Pennsylvania Department of State Bureau of Corporations and Charitable Organizations PO Box 8722 Harrisburg, PA 17105-8722

The fictitious name registration fee is $70.

4. Get an employer identification number (EIN)

If you’re a sole proprietor and don’t have employees, you might not need an EIN.

But if you have employees and/or your business is a partnership, an LLC, or a corporation, you need to get an Employer Identification Number (EIN) through the IRS website.

5. Register for taxes

Depending on the business type you choose, you may have to immediately register for business taxes in Pennsylvania, or you only need to report taxes. Make sure to check with the Pennsylvania Department of Revenue for precise information.

Pennsylvania handyman license renewal requirements

Pennsylvania home improvement contractor registrations are valid for two years. To renew your registration biennially, log in to your online account on the Attorney General’s website and complete the “Renew or Update Information” part.

Alternatively, you can renew your registration by submitting another application form. Make sure to check the box indicating that you are asking for a registration renewal and include your current registration number in the form.

Local Pennsylvania handyman business license requirements

Besides handyman registration and insurance requirements on a state level, it’s very important to check with local institutions for any additional demands.

Philadelphia

In Philly, every contractor, handymen included, needs a valid license and has to stick to the Contractor Code of Conduct.

Every worker has to finish basic safety training. This means taking the OSHA 10 Construction course or a similar one. They need to keep proof of this training at the job site.

At least one supervisor has to have finished the OSHA 30 Construction Safety and Health course. They need to submit proof of this when they apply for or renew their license.

Contractors in Philadelphia, including handypersons, need to have up-to-date insurance:

• Workers’ compensation
• General liability
• Motor vehicle liability

The coverage amounts are determined by the city’s Law Department and risk manager.

Pittsburgh

Handypeople in Pittsburgh must register with the city before beginning any work, including new construction, improvements or demolition.

The registration process involves completing an application, determining the current license fee and providing a check for the fee.

Handymen in Pittsburgh need to provide proof of insurance as part of their registration. This includes:

• A general liability limit of at least $300,000,
• Workers’ compensation insurance, unless legally exempted,
• Proof of registration to fulfill all city tax requirements
• Proof of a contractor bond.

Pennsylvania handyman business insurance requirements

Having handyman business insurance in Pennsylvania is an important step in starting a business. Besides covering the insurance requirements, a good policy will secure your business and demonstrate credibility to clients.

General liability insurance

General liability insurance can help provide coverage for potential work-related accidents, such as a third-party injury or damage to someone’s property.

Learn more about General Liability insurance in Pennsylvania.

Workers’ Compensation insurance

Workers’ compensation insurance can help provide wage protection and coverage for medical expenses if an employee is injured on the job. In Pennsylvania, all employers must carry workers’ comp coverage to operate, unless exempted.

Tools and equipment insurance

Tools and equipment insurance helps cover repairs and replacement if your work gear is stolen or damaged. At NEXT, this is an add-on to a General Liability policy.

Commercial auto insurance

Because handypeople often drive to different worksites, you may want commercial auto insurance, which can help cover costs related to accidents, such as towing, repairs and rental reimbursement. Personal auto coverage may not cover work-related incidents.

The state requires the following minimums:

• $15,000 per person and $30,000 per accident for bodily injury coverage
• $5,000 per accident for medical benefits
• $5,000 per accident for property damage

Commercial property insurance

If you own or rent property for your handyperson business, commercial property insurance can help cover any damage or vandalism that may occur.

Get your business covered with NEXT

NEXT can help you get your business off the ground with our options for handyman business insurance that’s guaranteed to be fast and affordable.

All it takes is a few minutes to fill out our online application, customize your options and obtain your proof of insurance.

What are you waiting for? Get your free online quote today.

Do you have projects in another U.S. state? Learn what states require handyman 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.