Handyman License Requirements in Orem, UT

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

In Orem, Utah, handymen can operate without a state contractor license for jobs under $3,000 (labor and materials combined) by filing a one-time Affirmation of Exemption with the Utah Division of Professional Licensing for a $35 fee. Jobs between $3,000–$7,000 require an exemption filing plus insurance documentation; jobs over $7,000 require a full state contractor license ($226 initial fee plus exam fees). All work in electrical, plumbing, and HVAC trades requires separate state licenses regardless of project value. Additionally, you must obtain a City of Orem business license (fee varies by business type—call (801) 229-7198 for current amount) and register your business entity with the Utah Division of Corporations ($54 LLC filing fee).

⚠️ What Requires a Contractor License

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

• ANY electrical work beyond simple fixture changes (outlet installation, panel work, rewiring, etc.)—requires E100/E200/E201 Electrical Contractor license
• ANY plumbing work beyond simple fixture replacement (pipe installation, water heater replacement, drain work, etc.)—requires P200/P201 Plumbing Contractor license
• ANY HVAC system work (installation, repair, replacement of furnaces, air conditioners, heat pumps, etc.)—requires H100 HVAC Contractor license
• Construction work valued at $7,000 or more (labor + materials combined)—requires B100, R100, or applicable General Contractor license
• Work affecting structural integrity or building envelope (load-bearing wall removal, roof replacement, foundation work, etc.)—requires General Contractor license
• Work requiring a building permit—requires appropriate contractor license
• Gas line installation or repair—requires licensed contractor
• Alarm system installation—requires licensed alarm contractor

State Contractor Licensing Law (UT)

The exemption does NOT cover electrical, plumbing, HVAC, or any work requiring a building permit. Work cannot be advertised using terms like 'contractor,' 'builder,' 'plumber,' or 'electrician' if operating under the exemption. The exemption does not allow breaking larger projects into smaller jobs to avoid licensing requirements.

County Requirements — Utah County

Business license: Not required at the county level.

City Business License — Orem

Required. City of Orem Business License (Home Occupation License if home-based; Commercial Business License if office/commercial location)

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 certain types of work. A PERMIT is a document issued by the city/county that authorizes a specific project to proceed and ensures it complies with building codes and safety standards. You can have a contractor license but still need a permit for a specific job. Conversely, even if you qualify for the handyman exemption (no license required), you may still need a permit for certain work. Permits are typically required when work affects structural integrity, electrical systems, plumbing, HVAC, or public safety. Always check with the City of Orem Building Department before starting work to determine if a permit is required.

Business Entity Registration (UT)

To operate legally you must register your business. LLC filing fee in UT: $54 (one-time).

Compliance Notes for Orem, Utah County, Utah

• Insurance Requirements: While not explicitly mandated by Utah state law for handymen under the exemption, general liability insurance is STRONGLY RECOMMENDED and often required by customers, lenders, and property managers. For projects $3,000–$7,000, you must provide proof of workers' compensation coverage when filing the Affirmation of Exemption. For licensed contractors, workers' compensation insurance is mandatory if you have employees.
• Advertising Restrictions: If operating under the handyman exemption, you CANNOT use terms like 'contractor,' 'builder,' 'plumber,' 'electrician,' or similar words that imply you perform licensed work. Violating this is unlawful conduct and can result in fines and enforcement action.
• Project Valuation: The $3,000 and $7,000 thresholds include BOTH labor and materials. You cannot break a single project into multiple smaller jobs to avoid licensing requirements—the entire scope of work must be considered.
• Permit Requirements: Even if you qualify for the handyman exemption, you may still need a building permit for certain work. Always verify with the City of Orem Building Department before starting a project.
• Trade Work: Electrical, plumbing, and HVAC work ALWAYS require a separate state license, regardless of project value or whether you qualify for the handyman exemption. There are no exceptions.
• Business Registration: You must register your business entity (LLC, corporation, sole proprietorship) with the Utah Division of Corporations before operating. This is separate from licensing and is required to file the Affirmation of Exemption.
• Penalties for Unlicensed Work: Performing construction work without a required license can result in fines up to $1,000 for the first offense and up to $2,000 for subsequent offenses. Customers can also sue for damages if unlicensed work causes injury or property damage.

Legal Registration Steps for Orem

Follow these steps to operate legally as a handyman in Orem, Utah County, Utah:

1. Step 1: Determine your business structure (LLC recommended) and register with the Utah Division of Corporations and Commercial Code ($54 filing fee). Obtain your business registration number.
2. Step 2: Determine if you qualify for the handyman exemption (projects under $3,000) or need a state contractor license (projects $7,000+). If $3,000–$7,000, file the Affirmation of Exemption ($35 fee) with proof of insurance.
3. Step 3: Obtain a City of Orem Business License (fee varies by business type—call (801) 229-7198 for current amount). If home-based, apply for a Home Occupation License.
4. Step 4: Verify with the City of Orem Building Department whether your specific projects require building permits.
5. Step 5: Obtain general liability insurance (recommended) and workers' compensation insurance if you have employees or work in the $3,000–$7,000 range.
6. Step 6: If performing electrical, plumbing, or HVAC work, apply for the appropriate state trade license (E200/E201, P200/P201, or H100) through DOPL.
7. Step 7: Register for a Sales Tax Permit with the Utah State Tax Commission if you sell taxable goods or services.
8. Step 8: Verify compliance with all local zoning and home occupation restrictions if operating from home.

Work You Can Do Without a Contractor License

• Minor drywall repairs and patching (non-structural)
• Interior and exterior painting (non-structural)
• Basic carpentry work (trim, shelving, non-load-bearing repairs)
• Flooring repair and replacement (non-structural)
• General maintenance and cleaning

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.