Handyman License Requirements in Dearborn, MI

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

In Michigan, handymen can work without a state license on jobs under $600 (labor + materials combined) under the residential builder exemption. However, any work exceeding $600 requires a Michigan Residential Builder or Maintenance & Alteration Contractor license from LARA. Additionally, all electrical, plumbing, and HVAC work requires separate state trade licenses regardless of job cost. Dearborn requires separate contractor registration with the City Clerk's Office before pulling permits. Trade-specific work (electrical, plumbing, HVAC) is prohibited without proper state licensure at any price point.

⚠️ 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 (installing outlets, switches, fixtures, rewiring, panel work) — requires Master Electrician or Electrical Contractor license at ANY price point
• ANY plumbing work (installing pipes, fixtures, water heaters, drain work) — requires Master Plumber or Plumbing Contractor license at ANY price point
• ANY HVAC/mechanical work (installing or repairing heating, cooling, ventilation systems) — requires Master Mechanical or Mechanical Contractor license at ANY price point
• Residential construction, repair, alteration, or demolition work exceeding $600 total contract value — requires Residential Builder or M&A Contractor license
• Roofing work — requires Residential Builder or M&A Contractor license
• Structural modifications or additions to residential buildings — requires Residential Builder license
• Swimming pool installation — requires M&A Contractor license
• Basement waterproofing — requires M&A Contractor license
• Masonry work — requires M&A Contractor license
• Siding installation — requires M&A Contractor license
• Insulation work — requires M&A Contractor license

State Contractor Licensing Law (MI)

The exemption does NOT cover electrical work, plumbing work, or HVAC/mechanical work — these trades require separate state licenses at ANY price point, regardless of the $600 threshold. The exemption also does not apply if contracts are split to circumvent the licensing requirement (anti-splitting rule). Penalties for unlicensed work above $600 include fines of $5,000–$25,000, jail time up to one year, or both. Repeated violations can result in jail sentences up to two years.

County Requirements — Wayne County

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 — Work on federal military property requires coordination with base contracting. State and local licenses still apply, but federal procurement rules take precedence. Background checks are standard.

City Business License — Dearborn

Required. City of Dearborn Contractor Registration & Business License

Permit vs. Contractor License — The Legal Difference

A LICENSE is a credential issued by the state (Michigan LARA) or city (Dearborn) that certifies you are qualified to perform specific types of work. A PERMIT is a document issued by the local building department (Dearborn) that authorizes a specific project to proceed and ensures the work complies with building codes. You can hold a valid license but still need a permit for each individual project. Even if you are exempt from licensing (under the $600 threshold), you may still need permits for certain work. Permits are required to ensure public safety and code compliance. Failure to obtain required permits can result in fines, stop-work orders, and liability issues.

Business Entity Registration (MI)

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

Compliance Notes for Dearborn, Wayne County, Michigan

• Insurance Requirement: General liability insurance is strongly recommended and often required by cities and customers. Some Dearborn licenses require a certificate of liability insurance naming the City of Dearborn as certificate holder. Workers' compensation insurance is required if you have employees.
• Anti-Splitting Rule: Do not split contracts to avoid the $600 licensing threshold. Michigan law prohibits circumventing the licensing requirement by breaking a single project into multiple contracts. Violations carry penalties of $5,000–$25,000 in fines and up to one year in jail.
• Trade License Prohibition: Electrical, plumbing, and HVAC work are ALWAYS prohibited without proper state licensure, regardless of job cost or whether the work falls under the $600 exemption. This is a strict rule with no exceptions.
• Dearborn Registration is Separate: Even if you hold a valid Michigan state contractor license, you must separately register with the City of Dearborn before pulling permits. Failure to register can result in permit denial and fines.
• Background Checks: Some Dearborn licenses require background checks submitted to the Dearborn Police Department. Plan for this in your licensing timeline.
• Historic District Compliance: If working in Dearborn's historic district, exterior work requires additional permits and Historic District Commission approval. Non-compliance can result in significant fines.
• Permit Requirement Even for Exempt Work: Even if your job is under $600 and exempt from licensing, you may still need permits for certain work (water heater replacement, structural changes, electrical panel work, etc.). Always check with the Dearborn Building Department before starting work.
• License Renewal: Residential Builder and M&A licenses must be renewed every three years by May 31. Set a reminder to avoid license lapse.

Legal Registration Steps for Dearborn

Follow these steps to operate legally as a handyman in Dearborn, Wayne County, Michigan:

1. Step 1: Determine your business structure. Form an LLC with Michigan LARA ($50 filing fee + $25 annual report fee) or operate as a sole proprietor. If using an assumed name, register a DBA with LARA ($25).
2. Step 2: Verify your licensing requirements. If your typical jobs exceed $600, apply for a Michigan Residential Builder or M&A Contractor license through LARA. Complete 60 hours of approved pre-license education (~$400), pass the exam ($70–$117), and submit your application ($195). Allow 4–8 weeks for processing.
3. Step 3: Register with the City of Dearborn. Contact the City Clerk's Office to register as a contractor and obtain the city business license. Confirm the exact registration fee and any insurance requirements.
4. Step 4: Obtain general liability insurance. Most customers and cities require proof of insurance. Ensure your policy names the City of Dearborn as certificate holder if required.
5. Step 5: If performing electrical, plumbing, or HVAC work, apply for the appropriate state trade license through LARA. These are separate from the general contractor license and have their own exam and fee requirements.
6. Step 6: Verify permit requirements with the Dearborn Building Department before starting each project. Even exempt work may require permits.
7. Step 7: Keep your licenses current. Renew your Residential Builder or M&A license every three years by May 31. File your annual LLC statement by February 15 each year.

Work You Can Do Without a Contractor License

• Minor drywall repairs and patching (under $600 total contract value)
• Interior and exterior painting (under $600 total contract value)
• Basic carpentry work such as installing shelving, trim, or door hardware (under $600 total contract value)
• Caulking and weatherstripping (under $600 total contract value)
• Replacing toilet flappers and simple fixture replacements (plumbing fixtures only, not system alterations)

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.