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Handyman License Requirements in Philadelphia, PA

By , Founder of Bulletproof Handyman · Pennsylvania rules checked November 2, 2026 · Philadelphia local rules checked November 2, 2026

Philadelphia requires (1) a free Commercial Activity License from L&I for anyone doing business in the city, including businesses located outside city limits, tied to a BIRT tax account; and (2) an L&I Contractor License ($126/yr; GL $500k, auto $300k, workers' comp, OSHA 30 supervisor) for construction work requiring permits.

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Philadelphia requirements

Philadelphia requires (1) a free Commercial Activity License from L&I for anyone doing business in the city, including businesses located outside city limits, tied to a BIRT tax account; and (2) an L&I Contractor License ($126/yr; GL $500k, auto $300k, workers' comp, OSHA 30 supervisor) for construction work requiring permits.

Source link: phila.gov · phila.gov · checked November 2, 2026

Local business license

Required

  • Name: Commercial Activity License (CAL) + Business Income & Receipts Tax (BIRT) account
  • Office: City of Philadelphia Dept. of Licenses & Inspections (L&I), via eCLIPSE; BIRT tax account with Dept. of Revenue
  • Fee: $0 (no cost for CAL)
"You need a Commercial Activity License to do business in Philadelphia. This includes businesses that are located outside the city limits that do business in the city... There is no cost for a Commercial Activity License."

Source: phila.gov · checked November 2, 2026

Local contractor or handyman license

Required

  • Name: Philadelphia Contractor License (L&I)
  • Trigger: Contractors doing construction work in the city that needs L&I permits; prerequisites: BIRT ID, CAL, COI (GL $500k/occurrence, auto $300k, workers' comp), OSHA 30 for named supervisors, current on City taxes. Fee $126/yr ($20 nonrefundable application fee applied).
"License fee $126. A non-refundable application fee of $20 is applied to the license fee... You must identify the supervisors responsible for construction projects... proof of completion of an approved OSHA 30 safety training course"

Source: phila.gov · checked November 2, 2026

County: Philadelphia County

The Pennsylvania rule

Regulator: Pennsylvania Office of Attorney General, Bureau of Consumer Protection - Home Improvement Contractor Registration (PA-HICRS, hic.attorneygeneral.gov). LLC formation: PA Department of State, Bureau of Corporations and Charitable Organizations.

$5,000 a year
Pennsylvania earnings figure

Not a home improvement contractor (no registration needed) if 'the total cash value of all of that person's home improvements is less than $5,000 during the previous taxable year' (strictly under $5,000; at $5,000 or more registration is required). FAQ elsewhere phrases it as 'less than $5,000 of work in a calendar year'. Separately, a job only counts as a 'home improvement' when the total cash price agreed is more than $500. Other exemption: home improvement retailers with net worth over $50,000,000. Written contracts are required for home improvements over $500; deposit limits apply to projects over $5,000.

What counts toward it: other: total cash value of all of the person's home improvements in the previous taxable year (annual business volume, not per job); a 'home improvement' itself is only work where total cash price agreed is more than $500

"A person for whom the total cash value of all of that person’s home improvements is less than $5,000 during the previous taxable year."

Source: attorneygeneral.gov · checked November 2, 2026

State registration

HICPA registration with the OAG: $100 non-refundable fee every two years (raised from $50 via a Fiscal Code change, 72 P.S. 1603-U; online card payments add $2). Proof of commercial general liability insurance: at least $50,000 personal injury and $50,000 property damage (self-insurance allowed with certificate). PA registration number (e.g., PA123456) must appear on all ads, contracts, estimates and proposals. Updates within 30 days of changes. Unregistered work: civil penalties of $1,000 or more; contracts may be unenforceable. Licensed electricians, master plumbers etc. must also register if doing home improvements.

Source: attorneygeneral.gov · hic.attorneygeneral.gov · checked November 2, 2026

Insurance and bond

HICPA registrants: CGL at least $50,000 personal injury liability and $50,000 property damage. No state bond required (none found on OAG pages).

Source: hic.attorneygeneral.gov · checked November 2, 2026

Forming an LLC in Pennsylvania

State filing fee: $125.

Source: pa.gov · checked November 2, 2026

What to do, in order

  1. Read the Pennsylvania rule and confirm with Pennsylvania Office of Attorney General, Bureau of Consumer Protection - Home Improvement Contractor Registration (PA-HICRS, hic.attorneygeneral.gov). LLC formation: PA Department of State, Bureau of Corporations and Charitable Organizations..
  2. Line up the Philadelphia items listed on this page.
  3. Get your insurance and rate in place before the first paid job.

Nearby places

Rules change. This page shows what official sources said on the dates above. It is not legal advice.