Handyman License Requirements in Lansing, MI

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

In Michigan, handymen can work without a state contractor license on projects under $600 (including labor and materials) thanks to the state's handyman exemption under MCL § 339.2403(f). However, this exemption does not cover electrical, plumbing, or HVAC work—those trades require separate state licenses regardless of project cost. For work at or above $600, you must obtain a Michigan Residential Builder or Maintenance & Alteration Contractor License from LARA ($195 application fee). Lansing requires contractor registration with the city, and you must also register your business entity with the Michigan Department of Treasury for tax purposes.

⚠️ 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 (rewiring, panel work, circuit installation, outlet/switch installation)
• ANY plumbing work beyond simple fixture replacement (pipe installation, system modifications, water heater replacement, drain work)
• ANY HVAC or mechanical system work (furnace installation, air conditioning, ductwork, refrigerant handling)
• Structural modifications or repairs (load-bearing wall changes, foundation work, roof framing)
• Work on projects exceeding $600 in total cost (labor + materials combined)
• Any work that requires a building permit in Lansing (water heater replacement, window/door replacement affecting structure, electrical panel work, plumbing changes, structural modifications)

State Contractor Licensing Law (MI)

CRITICAL LIMITATIONS: (1) The exemption does NOT apply to electrical, plumbing, or mechanical/HVAC work—those trades require separate state licenses regardless of project cost. (2) You cannot legally 'split' a larger job into multiple sub-$600 contracts to avoid licensing. (3) Even exempt handymen may need building permits for certain work (water heater replacement, structural changes, electrical panel work, etc.). (4) Violation of licensing requirements carries severe penalties: up to $25,000 in fines and/or one year in prison.

County Requirements — Ingham County

Business license: Not required at the county level.

City Business License — Lansing

Required. City of Lansing Contractor Registration / Business License

Permit vs. Contractor License — The Legal Difference

A LICENSE is a credential issued by the state (or city) that certifies you are qualified to perform a specific type of work. A PERMIT is a document issued by the local building department that authorizes a specific project to proceed and ensures it complies with building codes. You can have a contractor license but still need a permit for a specific job. Even if you are exempt from licensing (under the $600 threshold), you may still need a permit for certain work. For example, a handyman can paint a room without a license or permit, but installing a water heater—even if the total cost is under $600—typically requires a permit because it affects safety systems. Permits are issued by the City of Lansing Building Safety Office and are required for most construction, repair, and improvement work.

Business Entity Registration (MI)

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

Compliance Notes for Lansing, Michigan (Ingham County)

• Insurance: General liability insurance is highly recommended for all contractors, even those operating under the $600 exemption. Most homeowners' insurance policies exclude contractor liability. Typical general liability insurance costs $300-$800 annually for small handymen.
• Anti-Splitting Rule: You cannot legally split a $1,200 job into two $599 contracts to avoid licensing. Michigan law explicitly prohibits this practice, and violation carries severe penalties.
• Trade Work Exemption: The $600 handyman exemption does NOT apply to electrical, plumbing, or mechanical work. These trades require separate state licenses regardless of project cost.
• Permit Requirement: Even if you are exempt from licensing, you may still need a building permit for certain work. Always check with the City of Lansing Building Safety Office before starting a project.
• Contractor Registration: All contractors must register with the City of Lansing to perform work within city limits. This is separate from the state license.
• Tax Registration: All businesses must register with the Michigan Department of Treasury for tax purposes. If you sell taxable goods, you need a free Sales Tax License.
• Renewal Deadlines: State contractor licenses must be renewed every 3 years by May 31. Late renewal incurs a $20 fee. Annual reports for LLCs are due by February 15 each year.
• Penalties for Violation: Working without a required license or performing work outside your license scope can result in fines up to $25,000 and/or one year in prison.
• Historic District: If working on properties in Lansing's Historic District, exterior work visible from public areas requires additional permits and approval from the Historic District Commission.

Legal Registration Steps for Lansing

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

1. Step 1: Determine if your work requires a license. If all projects will be under $600 and do not involve electrical, plumbing, or HVAC work, you may operate under the handyman exemption. If you plan to do work over $600 or in the trades, proceed to Step 2.
2. Step 2: Register your business entity. Form an LLC by filing Articles of Organization with the Michigan Secretary of State ($50 fee) or operate as a sole proprietorship. If using a business name different from your legal name, file a DBA with the Ingham County Clerk.
3. Step 3: Register with the Michigan Department of Treasury for tax purposes. Obtain a free Sales Tax License if you sell taxable goods. Register for income tax withholding and unemployment insurance if you have employees.
4. Step 4: If performing work over $600 or in specific trades, apply for the appropriate state license from LARA: Residential Builder License, M&A Contractor License, or trade-specific licenses (electrical, plumbing, mechanical). Complete 60 hours of prelicensure coursework, pass the exam, and pay the application fee ($195).
5. Step 5: Register with the City of Lansing. Contact the Building Safety Office at (517) 483-4355 to obtain a contractor registration / business license and confirm the current fee.
6. Step 6: Obtain general liability insurance. Recommended coverage is $1 million per occurrence / $2 million aggregate.
7. Step 7: Before starting any project, verify with the City of Lansing Building Safety Office whether a building permit is required. If the property is in the Historic District, contact the Planning Department for additional requirements.
8. Step 8: Keep detailed records of all projects, including contracts, invoices, and proof of insurance. Maintain compliance with all state and local licensing requirements.

Work You Can Do Without a Contractor License

• Painting (interior and exterior)
• Drywall repair and patching (minor damage)
• Basic carpentry (trim work, shelving installation, non-structural repairs)
• Fixture replacement (ceiling fans, light fixtures—without rewiring; faucets, toilet repair/flapper replacement)
• Caulking and weatherstripping

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.