Handyman License Requirements in Ann Arbor, MI

By Ray Duke, Founder of Bulletproof Handyman · Last reviewed July 2026

In Michigan, handymen can work on projects under $600 (including labor and materials) without a state contractor license, but electrical, plumbing, and HVAC work always require licensed professionals regardless of project cost. For work exceeding $600, you must obtain a Michigan Residential Builder or Maintenance & Alteration Contractor license from LARA. Ann Arbor requires contractor registration with the city and building permits for most work. Trade-specific licenses (electrical, plumbing, HVAC) are mandatory for those trades in Michigan.

⚠️ What Requires a Contractor License

The following work requires a state-issued contractor license in MI. Performing this work without a license exposes you to fines, stop-work orders, and civil liability:

• Any electrical work beyond simple fixture changes: installing outlets, switches, ceiling fans, or any work involving the electrical panel or wiring requires a licensed electrician (Michigan Electrical Administrative Act, MCL 338.881–338.892)
• Any plumbing work beyond simple fixture replacement: installing or repairing pipes, water heaters, drains, or any work affecting the plumbing system requires a licensed plumber (Michigan Plumbing Act, MCL 338.3511–338.3583)
• HVAC system installation, repair, or alteration: any work on heating, ventilating, air conditioning, or refrigeration systems requires a licensed mechanical contractor (MCL 339.5813). Federal EPA Section 608 certification also required if refrigerant handling is involved.
• Any residential construction, renovation, or repair project exceeding $600 in total cost (labor + materials) requires a Michigan Residential Builder or Maintenance & Alteration Contractor license (MCL 339.2403)
• Structural modifications, load-bearing wall work, or foundation repairs
• Roof installation or replacement (requires M&A Contractor license in roofing category)
• Siding installation or replacement (requires M&A Contractor license in siding category)
• Masonry work including brick, stone, or concrete installation (requires M&A Contractor license in masonry category)

State Contractor Licensing Law (MI)

The exemption does NOT apply to electrical, plumbing, or HVAC work—these trades require licensed professionals regardless of project cost or value. The exemption also does not apply if the work is part of a larger project or if contracts are split to avoid the licensing requirement. Owner-builder exemptions have specific limitations and do not apply to electrical, plumbing, or mechanical work in most circumstances.

County Requirements — Washtenaw County

Business license: Not required at the county level.

City Business License — Ann Arbor

Required. Contractor Registration / Business License

Permit vs. Contractor License — The Legal Difference

A license is a credential issued by the state (Michigan LARA) that authorizes you to perform specific types of work as a contractor or tradesperson. A permit is a local authorization issued by the city (Ann Arbor) that allows a specific project to proceed and ensures it complies with building codes. You can be fully licensed but still need a permit for each project. Conversely, even if you are exempt from licensing (under the $600 threshold), you may still need permits for certain work. Permits are project-specific; licenses are credential-specific.

Business Entity Registration (MI)

To operate legally you must register your business. LLC filing fee in MI: $50 (one-time).

Compliance Notes for Ann Arbor, Washtenaw County, Michigan

• Insurance: General liability insurance is strongly recommended for all contractors in Michigan, even those operating under the $600 exemption. Many clients require proof of insurance before allowing work to begin. Typical general liability insurance costs $300–$800 annually for small contractors.
• Trade-Specific Licensing: Electrical, plumbing, and HVAC work ALWAYS require licensed professionals in Michigan, regardless of project cost. Do not attempt these trades without proper licensing—penalties include fines up to $25,000 and imprisonment up to 1 year for first offense, up to 2 years for subsequent offenses.
• Contract Splitting: Michigan law prohibits splitting a single project into multiple contracts to avoid the $600 licensing threshold. If the work is part of a larger project, the total cost of all related work counts toward the threshold.
• Permits vs. Licenses: Even if you qualify for the $600 exemption, you may still need building permits for certain work. Always check with Ann Arbor Building Services before starting a project.
• Historic Districts: Ann Arbor has multiple historic districts. If your project involves exterior work visible from public areas in a historic district, you must obtain Historic District Commission approval before applying for a building permit. This can add 2–4 weeks to the approval timeline.
• Continuing Education: If you obtain a Michigan contractor license, you must complete 21 hours of continuing education during the first 6 years of licensure for renewal.
• License Expiration: Michigan contractor licenses expire every 3 years on May 31st. Plan ahead for renewal to avoid late fees ($20 additional).
• Owner-Builder Exemption Limits: Michigan's owner-builder exemption does NOT apply to electrical, plumbing, or mechanical work. Even if you own the property, you cannot perform these trades without a license.

Legal Registration Steps for Ann Arbor

Follow these steps to operate legally as a handyman in Ann Arbor, Washtenaw County, Michigan:

1. Step 1: Determine if your work exceeds $600 in total cost (labor + materials). If under $600 and not involving electrical, plumbing, or HVAC, you may operate without a state license but must still comply with city permits.
2. Step 2: Register your business entity. Form an LLC with the Michigan Secretary of State ($50 filing fee) or operate as a sole proprietor (no fee, but less liability protection).
3. Step 3: Obtain Ann Arbor contractor registration. Contact Ann Arbor City Clerk (Licenses & Permits) at (734) 794-6265 or visit a2gov.org/city-clerk/licenses-and-permits/ to determine the exact registration fee and process.
4. Step 4: If your work exceeds $600 or involves general contracting, apply for a Michigan Residential Builder or Maintenance & Alteration Contractor license through LARA. Complete 60 hours of approved prelicensure education, pass the exam ($70–$117), and submit your application ($195 fee). Allow 4–8 weeks for processing.
5. Step 5: If you perform electrical, plumbing, or HVAC work, obtain the appropriate trade license from LARA. Each trade has specific experience requirements (1,000–8,000 hours) and exam fees ($70–$312).
6. Step 6: Obtain general liability insurance ($300–$800 annually) and verify coverage requirements with clients.
7. Step 7: For each project, determine if a building permit is required by contacting Ann Arbor Building Services at (734) 794-6265 or applying through the STREAM portal at a2gov.org. Building permits typically cost $15–$100+ depending on project scope.
8. Step 8: If your project involves exterior work in a historic district, contact Ann Arbor Planning & Development Services at (734) 794-6265 to determine if Historic District Commission approval is needed before applying for a building permit.

Work You Can Do Without a Contractor License

• Minor drywall repairs and patching (under $600 total project cost)
• Interior painting and staining (under $600 total project cost)
• Basic carpentry repairs such as replacing trim, baseboards, or cabinet hardware (under $600 total project cost)
• Caulking and weatherstripping (under $600 total project cost)
• Replacing interior doors and door hardware (under $600 total project cost)

Licensing rules and fees change over time, so this information may be out of date. Verify all information with local authorities before making business decisions.