How to Start a Handyman Business in Maryland
Home repairs and maintenance in Maryland.
Maryland is one of the most heavily regulated states for handyman work. Unlike most states, there is NO handyman exemption - the MHIC (Maryland Home Improvement Commission) license is required for ANY home improvement work over $500. This creates a barrier but also limits competition and supports premium pricing.
Important Notices
MHIC License REQUIRED
Maryland does NOT exempt handymen. ANY home improvement work over $500 requires MHIC license. Unlicensed work is illegal.
$500K Insurance Minimum
Since June 1, 2024, MHIC contractors must maintain $500,000 liability insurance. This is a significant increase from previous requirements.
2 Years Experience Required
You must document 2 years of home improvement experience before applying for MHIC license.
High Ongoing Costs
MHIC renewal every 2 years ($175), $300/year LLC annual report, plus high insurance costs.
Important Notices
| Item | Low | High |
|---|---|---|
| Basic Tools Hand tools, power tools, ladders | $400 | $2,500 |
| Vehicle Truck or van for tools/materials | $0 | $4,000 |
| LLC Formation Maryland SDAT filing fee | $150 | $200 |
| Annual Report Required every year | $300 | $300 |
| MHIC License Fee Application and processing | $250 | $350 |
| MHIC Exam Fee PSI exam registration | $75 | $100 |
| Guaranty Fund Assessment Every 2 years | $100 | $175 |
| Liability Insurance $500K minimum required since June 2024 | $500 | $1,200 |
| Marketing Website, cards, truck lettering | $150 | $800 |
| Total | $1,925 | $9,625 |
Licenses & Limits
LLC Registration
Maryland SDAT, $300/year annual report
Same day available
MHIC License
Required for ANY work over $500
2-3 weeks after exam
MHIC Exam
Must pass before applying for license
Schedule with PSI
2 Years Experience
Required for MHIC license
Must document
Liability Insurance
$500,000 minimum required since June 2024
1 day
Licenses & Limits
Bethesda/Potomac
75,000+Highest rates, affluent homeowners ($70-100/hr)
Columbia
104,000Howard County, strong demand ($60-85/hr)
Baltimore
576,000Largest market, diverse neighborhoods ($50-75/hr)
Annapolis
40,000Historic homes, waterfront properties ($55-80/hr)
Handyman Costs in Other States
View all 50 statesMaryland Handyman Tips
License Creates Value
Exam Prep Courses
Financial Solvency
Subcontractor Path
Premium Market Access
Avoid Trade Work
Maryland Handyman Tips
Verify Experience
MHIC requires 2 years of home improvement experience. Document your work history.
Study for MHIC Exam
The exam covers Maryland home improvement law, business practices, and regulations. Consider exam prep courses.
Register for PSI Exam
Schedule through PSI Exams. Pass the exam before applying for license.
Register Your LLC
File with SDAT ($150). Trade name registration required if using DBA.
Get Required Insurance
Minimum $500,000 liability insurance required since June 2024. Must maintain at all times.
Apply for MHIC License
Submit application, proof of experience, insurance certificate, and financial solvency documentation.
Pay Guaranty Fund Assessment
$100 for original license, $175 for renewals (every 2 years).
Launch Operations
Once licensed, you can legally perform home improvement work in Maryland.