Handyman License Requirements in Detroit, MI

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

In Detroit, Michigan, handymen can work on projects under $600 (labor + materials combined) without a state contractor license, but must comply with city business licensing and cannot perform electrical, plumbing, or HVAC work regardless of project size without trade-specific licenses. For projects $600 or more, a Michigan Residential Builder or Maintenance & Alteration Contractor license is required. Detroit also imposes an additional electrical licensing overlay for electrical contractors working within city limits.

⚠️ 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 (light bulb replacement, outlet cover plate changes) — requires Master Electrician or Electrical Contractor license; Detroit also requires additional city electrical license
• ANY plumbing work beyond simple fixture replacement (faucet aerators, showerheads) — requires Master Plumber or Plumbing Contractor license
• ANY HVAC or mechanical system work (installation, repair, or servicing of heating, cooling, refrigeration, or fire suppression systems) — requires Mechanical Contractor license; EPA Section 608 certification required if refrigerant handling is involved
• ANY gas fitting or gas line work — requires Gas Fitter or Gas Contractor license
• Residential construction or remodeling projects totaling $600 or more (labor + materials combined) — requires Residential Builder or Maintenance & Alteration Contractor license
• Structural modifications, load-bearing wall work, or foundation repairs — requires Residential Builder license
• Roofing work (if seeking M&A Contractor license with roofing classification) — may require separate roofing contractor license depending on scope
• Work in historic districts affecting exterior appearance — requires Historic District permit in addition to any trade licenses

State Contractor Licensing Law (MI)

The exemption does NOT cover electrical, plumbing, HVAC, or gas work — these trades require separate state licenses regardless of project cost. Subcontractors working solely under a licensed residential builder or M&A contractor are also exempt, but only in that capacity. Violations carry penalties up to $25,000 and potential jail time.

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 performed on federal installations is governed by federal contracting rules, not Michigan state licensing alone. Verify all requirements with the base contracting office before bidding or starting work.
• Pokagon Band of Potawatomi Indians — State and city licenses do NOT apply on sovereign tribal land. You must obtain a separate tribal business license issued by the tribal council. Each tribe has different rules and fees.
• Sault Ste. Marie Tribe of Chippewa Indians — State and city licenses do NOT apply on sovereign tribal land. Obtain separate tribal business license from tribal council.

City Business License — Detroit

Required. Detroit Business License

Permit vs. Contractor License — The Legal Difference

A LICENSE is a credential issued by the state (or city) that authorizes you to perform a specific trade or business. A PERMIT is a project-specific authorization issued by a local government (city or county) that allows you to perform specific work at a specific location. You can hold a valid contractor license but still need a permit for individual projects. Even handymen exempt from licensing requirements may need permits for certain work. Permits ensure that work complies with building codes, zoning laws, and safety standards. Failure to obtain required permits can result in fines, liens on the property, and forced removal of work.

Business Entity Registration (MI)

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

Compliance Notes for Detroit, Michigan (Wayne County)

• Insurance: General liability insurance is strongly recommended for all handymen and contractors in Michigan. Many clients require proof of insurance before allowing work on their property. Typical coverage is $1 million per occurrence / $2 million aggregate.
• Bonding: While Michigan does not mandate performance bonds for residential builder or M&A contractor licenses, individual clients or municipalities may require bonds for larger projects. Budget 1–3% of project cost for bonding if required.
• Detroit Electrical Overlay: Electrical contractors working in Detroit MUST obtain an additional city electrical license and pass a city-level exam — this is unique to Detroit and often overlooked. Failure to comply can result in fines and work stoppage.
• Historic District Compliance: If working in a Detroit historic district (Corktown, Brush Park, Boston-Edison, Woodbridge, etc.), verify permit requirements with HDAB/BSEED BEFORE starting work. Exterior modifications visible from public areas require approval. Fines for non-compliance are steep ($500–$5,000+).
• Contract Splitting: Do NOT split a single project into multiple contracts to avoid the $600 licensing threshold. Michigan law prohibits this practice, and violations carry penalties up to $25,000 and potential jail time.
• Subcontractor Exemption: Subcontractors working solely under a licensed residential builder or M&A contractor are exempt from licensing, but only in that capacity. If you bid directly to homeowners, you must be licensed for projects $600+.
• Trade License Stacking: A Residential Builder license does NOT authorize you to perform electrical, plumbing, HVAC, or gas work. You must hold separate trade licenses for these specialties.
• Continuing Education: Residential Builder licenses require 21 hours of continuing education during the first six years of licensure for renewal. Plan ahead to avoid license lapse.
• Annual Statement Filing: Michigan requires online-only filing of annual statements through MiBRP as of June 23, 2025. Mail and in-person filing are no longer available. First annual statement is due February 15 of the year after formation.
• Tribal Land Work: If working on tribal lands (Pokagon Band, Sault Ste. Marie Tribe, etc.), obtain a separate tribal business license. State and city licenses do NOT apply on sovereign tribal land. Each tribe has different requirements and fees.

Legal Registration Steps for Detroit

Follow these steps to operate legally as a handyman in Detroit, Michigan (Wayne County):

1. Step 1: Determine your business structure. If you plan to work on projects $600+, form an LLC with Michigan LARA ($50 filing fee + $25 annual statement fee). File Articles of Organization through MiBRP at https://mibusiness.lara.michigan.gov.
2. Step 2: Obtain a Detroit business license. Apply through BSEED's Accela/eLAPs portal at https://detroitmi.gov/departments/buildings-safety-engineering-and-environmental-department-bseed/business-licensing. Verify the exact fee for your business classification by calling (313) 224-2733.
3. Step 3: If working on projects $600+, apply for a Michigan Residential Builder or Maintenance & Alteration Contractor license. Complete 60 hours of approved prelicensure education, pass the state exam ($117 for Residential Builder, $70+ for M&A), and submit your application to LARA with the $195 application fee. Contact LARA at (517) 241-9316 or visit https://www.michigan.gov/lara/bureau-list/bcc/sections/licensing-section/residential-builders.
4. Step 4: If performing electrical work in Detroit, apply for the additional Detroit city electrical license and exam. Contact BSEED at (313) 224-2733 for requirements and fees.
5. Step 5: If performing electrical, plumbing, HVAC, or gas work, obtain the corresponding state trade licenses from LARA. Each trade has separate application, exam, and fee requirements. Contact LARA at (517) 373-1820 or visit https://www.michigan.gov/lara.
6. Step 6: Obtain general liability insurance ($1 million per occurrence / $2 million aggregate recommended). Many clients require proof of insurance.
7. Step 7: Verify permit requirements for each project with Detroit BSEED or Wayne County before starting work. Even exempt handymen may need permits for certain work (water heater replacement, electrical panel work, structural modifications, historic district work, etc.).
8. Step 8: If working in a Detroit historic district, verify requirements with HDAB/BSEED before starting any exterior work visible from public areas.
9. Step 9: If working on tribal lands or federal installations, contact the specific tribal business office or federal contracting office for additional licensing and registration requirements.

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)
• Fixture replacement (light fixtures, faucet aerators, towel bars) — NOT including plumbing or electrical work beyond simple fixture swaps

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.