Handyman License Requirements in Clawson, MI

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

In Clawson, Michigan, a person may do residential builder or maintenance-and-alteration work without a state Residential Builder or Maintenance and Alteration Contractor license only when one project’s aggregate price for labor, materials, and other items is less than $600. That exemption does not cover electrical, plumbing, or mechanical work, and it does not waive Clawson permits. A business located in Clawson needs the city’s business license ($50 on the July 1, 2024 fee schedule); Oakland County does not issue a separate general business license, and Michigan has no statewide general business license.

⚠️ 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:

• Residential construction, repair, alteration, addition, improvement, wrecking, demolition, garage building, or residential concrete for compensation when the project is $600 or more, or is not otherwise exempt
• Splitting one job into contracts under $600, or doing a piece of a larger operation, does not avoid the Residential Builder or M&A license
• Electrical work, including work beyond simple fixture changes; a state electrical contractor license and a master electrician qualifier are required
• Plumbing beyond narrow statutory exceptions such as certain minor repairs and permitted homeowner work in a single-family dwelling
• HVAC and other mechanical work, including equipment, ductwork, hydronic systems, refrigeration, and limited heating service, under a mechanical contractor classification
• Gas and heating work that falls under a mechanical classification; a builder or handyman exemption does not cover it
• Pulling trade permits in Clawson as an electrical, plumbing, heating, or refrigeration contractor, which also requires the city’s local contractor registration in addition to the state license

State Contractor Licensing Law (MI)

The exemption does not authorize electrical, plumbing, or mechanical (HVAC) work. Those trades are licensed separately under the Skilled Trades Regulation Act (2016 PA 407) regardless of dollar amount. It also does not waive Clawson building, electrical, mechanical, plumbing, or zoning permits. Other exemptions in the same section include an owner working on a structure for their own use and occupancy; a rental-property owner doing maintenance and alteration of that rental property; people working solely under contract with a licensed residential builder or M&A contractor; and licensed electrical, plumbing, and mechanical contractors only for work in their own trade. Unlicensed practice can be charged under MCL 339.601. Official text: https://www.legislature.mi.gov/documents/mcl/pdf/mcl-339-2403.pdf. Guides that say Michigan has no dollar threshold conflict with the current statute.

County Requirements — Oakland

Business license: Not required at the county level.

Special Jurisdictions & Zones

The following special jurisdictions may have separate licensing requirements:

• Selfridge Air National Guard Base — Do not enter the installation or start work without base authorization. State and city licenses do not replace base access rules.

City Business License — Clawson

Required. Initial Merchant License / Business License

Permit vs. Contractor License — The Legal Difference

A license is ongoing permission to offer a trade or operate a business. A permit is job-specific permission to do particular work at a particular address. The Michigan under-$600 licensing exemption does not waive Clawson building, electrical, mechanical, plumbing, or zoning permits. Even exempt handymen must check whether the specific job needs a permit before starting.

Business Entity Registration (MI)

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

Compliance Notes for Clawson, Michigan

• Michigan does not mandate a general-liability minimum or a license surety bond for the Residential Builder or M&A license. Clients and cities still commonly require general liability, often $1 million per occurrence on commercial work.
• Workers’ compensation is required if a private employer regularly employs 3 or more employees at one time, including part-time, or regularly employs at least one person 35 or more hours per week for 13 weeks or longer in the preceding 52 weeks. For corporations, LLCs, and partnerships, owners, members who are managers, and corporate officers generally count as employees unless a valid exclusion (Form WC-337) is on file. A sole proprietor is not an employee of their own sole proprietorship. Confirm at https://www.michigan.gov/leo/bureaus-agencies/wdca/insurance-requirements/pages/workers-disability-compensation-insurance-requirements.
• Labor-only repair is generally not subject to Michigan sales tax, but materials you sell can be. A Treasury sales-tax license is required if you sell tangible personal property.
• Disturbing paint in pre-1978 housing can trigger EPA Renovation, Repair and Painting certification even when the state builder exemption applies.
• Staying under $600 does not remove Michigan Consumer Protection Act exposure. Licensed residential builders also have specific contract and complaint rules.
• Clawson right-of-way work can require a local cash bond on the order of $1,500-$5,000 plus insurance. That is not the state builder license bond.
• Confirm the Clawson fee schedule has not been replaced after July 1, 2024 before paying the $50 business license or the $15-$30 contractor registration fees.

Legal Registration Steps for Clawson

Follow these steps to operate legally as a handyman in Clawson, Michigan:

1. Decide whether every residential job will stay under $600 for labor, materials, and other items on a single undertaking. If any project is $600 or more and no other exemption applies, apply to LARA for a Residential Builder or M&A license before contracting; the individual application fee is $195.
2. Do not perform electrical, plumbing, or mechanical/HVAC work without the matching state skilled-trade license, regardless of price. Confirm the current application fee on the LARA form for that classification.
3. If you will use an LLC, file Articles of Organization with LARA for $50 and calendar the $25 annual statement due February 15.
4. If the business is located in Clawson, obtain the city business license from the City Clerk and confirm zoning or home-occupation approval with Community & Economic Development at (248) 435-4500.
5. Register with the Clawson building office before pulling permits if the city requires local contractor registration, and pull required permits even for under-$600 jobs.
6. Obtain general liability insurance and determine whether workers’ compensation applies. There is no state builder bond, but customers and the city may still require insurance or a local bond.
7. Verify these figures with LARA at (517) 241-9316 and the Clawson City Clerk at (248) 435-4500 ext. 118 before paying or starting work.

Work You Can Do Without a Contractor License

• One residential maintenance or alteration undertaking under $600 total, including labor, materials, and other items, that is not part of a larger operation and is not split to evade licensing
• Interior or exterior painting when the entire contract is under $600
• Minor drywall patching and small drywall repairs under $600
• Basic non-structural carpentry such as shelving, trim, door hardware, and weatherstripping under $600
• Caulking, minor fixture hardware, and similar small repairs under $600 that do not involve electrical, plumbing, or mechanical systems

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.