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How to Start a Handyman Business in Tennessee

Home repairs and maintenance in Tennessee.

Tennessee offers a favorable environment for handyman businesses. Jobs under $3,000 require no license statewide. For larger projects ($3K-$25K), only 9 counties require a Home Improvement License. With no state income tax, handymen keep more of their earnings.

Important Notices

Avoid Trade Work

Electrical, plumbing, and HVAC require separate trade licenses regardless of job value. Don't risk fines and liability.

9-County Rule

Home Improvement License required for $3K-$25K jobs in: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, Shelby counties.

$25K Contractor Threshold

Jobs over $25,000 require full Contractor License from Tennessee Board for Licensing Contractors.

Important Notices

Item Low High
Basic Tools Hand tools, power tools, ladders $500 $3,000
Vehicle Truck or van for tools/materials $0 $5,000
LLC Formation Tennessee filing fee $300 $350
Insurance General liability annual $500 $1,500
Home Improvement Bond $10K bond if licensed $0 $200
Marketing Website, cards, truck lettering $200 $1,000
Specialty Tools As needed for services offered $0 $2,000
Total $1,500 $13,050
Complete Handyman Startup Guide National costs, equipment lists, pricing strategy, and step-by-step instructions.

Licenses & Limits

LLC Registration

Tennessee Secretary of State, $300/year annual report

3-5 days

$300
Official Website

Business License

County business license required

1-2 weeks

$15-100

Home Improvement License

Required for $3K-$25K jobs in 9 counties

2-4 weeks

$75-150
Official Website

Surety Bond

$10,000 bond for Home Improvement License

1-2 days

$100-200/year

General Liability Insurance

Recommended for all handymen

1 day

$500-1,500/year

Licenses & Limits

Nashville (Davidson)

715,000

Home Improvement License required $3K-$25K, highest rates ($55-85/hr), rapid growth

Memphis (Shelby)

633,000

Home Improvement License required, mid-range rates ($45-70/hr), older housing stock

Knoxville (Knox)

192,000

Home Improvement License required, growing market ($45-65/hr)

Chattanooga (Hamilton)

181,000

Home Improvement License required, outdoor tourism rentals ($45-65/hr)

Handyman Costs in Other States

View all 50 states

Tennessee Handyman Tips

Stay Under $3K
No License Counties
Property Manager Network
Honey-Do Lists
Real Estate Prep
Written Contracts

Tennessee Handyman Tips

1

Define Your Services

Basic carpentry, painting, drywall, minor repairs. Avoid electrical, plumbing, and HVAC - those require trade licenses.

2

Understand the Limits

Under $3,000: No license needed statewide. $3K-$25K: Home Improvement License in 9 counties. Over $25K: Contractor license required.

3

Register Your Business

File LLC with Tennessee Secretary of State ($300). Get county business license.

4

Get Insurance

General liability insurance protects against property damage and injury claims.

5

Get Licensed (If Needed)

If working in Davidson, Shelby, Hamilton, Knox, Rutherford, or 4 other counties on jobs $3K-$25K, get Home Improvement License.

6

Build Your Toolkit

Invest in quality tools for the services you offer. Basic hand tools, power tools, safety equipment.

7

Set Your Pricing

Nashville: $55-85/hour. Memphis: $45-70/hour. Material markup 15-25% standard.

8

Market Locally

Nextdoor, Google Business Profile, yard signs. Build referral network with real estate agents.

Tennessee Handyman FAQ

Do I need a license to do handyman work in Tennessee?
For jobs under $3,000, no license is needed statewide. For $3,000-$25,000 jobs, a Home Improvement License is required only in 9 counties (Davidson, Shelby, Hamilton, Knox, etc.). Jobs over $25,000 require a Contractor License.
What are the 9 counties requiring Home Improvement License?
Bradley, Davidson (Nashville), Hamilton (Chattanooga), Haywood, Knox (Knoxville), Marion, Robertson, Rutherford, and Shelby (Memphis). Profit margins typically run 35-55% for handyman businesses in Tennessee.
What work can I do without any license?
Basic carpentry, painting, drywall repair, furniture assembly, mounting/hanging, deck staining, pressure washing, and general maintenance. Never do electrical, plumbing, or HVAC without trade licenses.
How much can I charge in Nashville?
Nashville handymen typically charge $55-85/hour. Memphis: $45-70/hour. Smaller markets: $40-60/hour. Add 15-25% markup on materials. Profit margins typically run 35-55% for handyman businesses in Tennessee.
What's required for the Home Improvement License?
Application through TN Board for Licensing Contractors, $10,000 surety bond, workers' comp (if employees), proof of insurance, and written contract template. No exam required.

Tennessee Handyman FAQ

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