Do you need a license to work as a handyman in Gaithersburg, MD?

In MD, handyman jobs under $500 (labor and materials combined) generally do not require a state contractor license. Jobs at or above $500 require a licensed contractor. Always confirm the current rules with your local city and county before bidding work.

What is the handyman license threshold in Gaithersburg, MD?

The contractor license threshold in MD is $500. Handyman work priced below this amount (labor plus materials) generally does not require a contractor license.

Does Gaithersburg require a business license for handymen?

Yes. Gaithersburg requires a local business license to operate as a handyman, in addition to any state contractor licensing rules.

Handyman License Requirements in Gaithersburg, MD

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

Handymen and small contractors in Gaithersburg, Maryland must comply with Maryland's Home Improvement Contractor (MHIC) licensing requirements for any home improvement work exceeding $500 in combined labor and materials. Maryland does not have a traditional handyman exemption; instead, work under $500 is exempt from MHIC licensing, but trade-specific work (electrical, plumbing, HVAC, gas) requires separate state trade licenses regardless of project value. The City of Gaithersburg enforces state MHIC requirements and requires city contractor registration for electrical work. General liability insurance of at least $500,000 is mandatory as of June 1, 2024.

The contractor license threshold in MD is $500. Jobs at or above this amount (labor + materials) require a state contractor license. Operating above this threshold without a license is a legal violation.

⚠️ What Requires a Contractor License

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

Any home improvement work exceeding $500 in combined labor and materials requires MHIC licensing
Electrical work beyond simple fixture changes requires State Master Electrician license (separate from MHIC)
Plumbing work beyond simple fixture replacement requires State Plumber & Gas Fitter license (separate from MHIC)
HVAC system work requires State HVACR license (separate from MHIC)
Gas fitting work requires State Gas Fitter license (separate from MHIC)
Hardscape work: stone, pavers, masonry (requires MHIC licensing regardless of project value)
Foundation work and underpinning (requires MHIC licensing regardless of project value)
Interior demolition (requires MHIC licensing regardless of project value)
Roofing, siding, decks, additions, kitchen/bathroom remodeling, basement finishing (all require MHIC licensing if over $500)
New home construction in Montgomery County requires Montgomery County Building Contractor's License (separate from MHIC)
Work on federal property (NIH, Fort Detrick, etc.) requires federal contractor registration in SAM.gov for contracts over $10,000

State Contractor Licensing Law (MD)

The $500 threshold is NOT a true handyman exemption like California's $1,000 rule—it is simply the minimum contract value triggering the licensing mandate. Trade-specific work (electrical, plumbing, HVAC, gas) requires separate state trade licenses regardless of dollar amount. Subcontractors working for MHIC-licensed contractors may work without a license. Violations are misdemeanors with fines up to $5,000 and up to two years jail time.

County Requirements — Montgomery County

Business license: Not required at the county level.

Special Jurisdictions & Zones

The following special jurisdictions may have separate licensing requirements:

National Institutes of Health (NIH) Campus - Bethesda — Work on federal property requires separate federal contractor registration and compliance. State MHIC license does not authorize work on federal property without additional federal credentials.
Fort Detrick (Frederick, MD) - Approximately 25 miles northwest — Work on military installations requires separate federal contractor authorization and base access credentials. State MHIC license does not apply on military property.

City Business License — Gaithersburg

Required. City Contractor License / Registration (MHIC enforcement + trade-specific registration)

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 type of work. A permit is a project-specific authorization issued by the local building department that allows you to perform work on a specific property. You can hold a valid MHIC license but still need to obtain a building permit before starting work on a specific project. Even handymen performing work under the $500 exemption may need permits for certain work. Permits ensure that work complies with building codes, zoning regulations, and safety standards. Failure to obtain required permits can result in fines, stop-work orders, and liability issues.

Business Entity Registration (MD)

To operate legally you must register your business. LLC filing fee in MD: $100 (one-time).

Compliance Notes for Gaithersburg, Montgomery County, Maryland

Insurance Requirement (Critical): General liability insurance of at least $500,000 is mandatory as of June 1, 2024. This was increased from $50,000 per Senate Bill 806. Failure to maintain required insurance is a violation of state law.
Financial Solvency: MHIC applicants must demonstrate financial solvency based on personal assets, liabilities, credit report, and net worth. Business assets alone do not satisfy this requirement. If you cannot meet guidelines, you can obtain a $30,000 or $100,000 surety bond instead.
Trade Licenses Are Separate: An MHIC license does NOT authorize electrical, plumbing, HVAC, or gas work. These require separate state trade licenses. Attempting to perform trade work without the appropriate license is a separate criminal violation.
Exam Requirement: You must pass the MHIC licensing exam (administered by PSI Exams, 1-800-367-1565) with a minimum 70% score before submitting your license application. The exam tests knowledge of Maryland home improvement laws.
$500 Threshold Includes Materials: The $500 exemption threshold applies to COMBINED labor and materials, not labor alone. A $450 labor contract with $200 in materials exceeds the threshold.
Subcontractor Exception: Subcontractors working for MHIC-licensed contractors may work without a license. Only the general contractor needs the MHIC license.
Penalties for Non-Compliance: Operating without required MHIC licensing is a misdemeanor with fines up to $5,000 and jail time up to two years.
Home Occupation Permit: If operating out of a residential address, obtain a home occupation permit from Gaithersburg Planning at (301) 258-6330.
Historic District Compliance: Work in Gaithersburg's Historic District requires additional permits and design review. Exterior work visible from public areas (paint, windows, doors, roofing, siding) requires approval from the Historic Preservation Commission.
Federal Property: Work on NIH, Fort Detrick, or other federal property requires separate federal contractor registration and authorization. State MHIC license does not apply on federal property.

Legal Registration Steps for Gaithersburg

Follow these steps to operate legally as a handyman in Gaithersburg, Montgomery County, Maryland:

Step 1: Verify your business structure. If operating as a sole proprietor, you can use your personal name or register a DBA. If forming an LLC, file Articles of Organization with Maryland SDAT ($100 filing fee) at https://businessexpress.maryland.gov.
Step 2: Pass the MHIC licensing exam. Register with PSI Exams (1-800-367-1565) and schedule your exam. Minimum 70% score required. Exam fee is $63.
Step 3: Gather required documentation for MHIC application: proof of two years experience in home improvement/construction, personal financial statements, credit report, and proof of general liability insurance ($500,000 minimum as of June 1, 2024).
Step 4: Submit MHIC license application to Maryland Department of Labor, MHIC Division. Application fee is $281.25 + processing fee $22.50 + guaranty fund $100 = $403.75 total. Submit at https://labor.maryland.gov/license/mhic/.
Step 5: Obtain city business license/registration from City of Gaithersburg. Verify specific requirements with City Finance & Administration at (301) 258-6310 or Planning at (301) 258-6330.
Step 6: If performing electrical work, register with City of Gaithersburg ($175 for two-year period).
Step 7: If performing trade work (plumbing, HVAC, gas), obtain separate state trade licenses from Maryland Department of Labor.
Step 8: If operating out of a residential address, obtain home occupation permit from Gaithersburg Planning at (301) 258-6330.
Step 9: Obtain general liability insurance ($500,000 minimum) before starting any work.
Step 10: For each project, obtain required building permits from City of Gaithersburg Department of Permitting and Code Administration at (301) 258-6330.

Work You Can Do Without a Contractor License

Light landscaping work: grass cutting, lawn fertilizer application, seeding (under $500 combined labor and materials)
Painting interior or exterior surfaces (under $500 combined labor and materials)
Basic carpentry: trim work, shelving installation, minor repairs (under $500 combined labor and materials)
Drywall repairs and patching (under $500 combined labor and materials)
Demolition work (exempt from MHIC licensing regardless of project value)

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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.