Handyman License Requirements in Troy, MI

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

Handymen in Troy, Michigan can work on projects under $600 (including labor and materials) without a state contractor license, thanks to Michigan's handyman exemption. For projects $600 and above, you'll need either a Michigan Residential Builder License or Maintenance & Alteration Contractor License from LARA. Trade work (electrical, plumbing, HVAC) always requires a separate state trade license regardless of project value. Troy requires building permits for construction work but does not impose an additional city contractor license on top of LARA credentials.

⚠️ 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 — including replacing light fixtures, outlets, switches, or any work involving electrical panels or wiring (requires Michigan Master Electrician or Electrical Contractor License)
• ANY plumbing work — including fixture replacement, pipe repair, water heater installation, or any work involving water lines or drains (requires Michigan Master Plumber License)
• ANY HVAC work — including furnace repair, air conditioning service, ductwork installation, or any work on heating/cooling systems (requires Michigan Mechanical Contractor License)
• ANY gas line work — including gas appliance hookup, gas line repair, or gas system modification (requires Michigan Gas Fitter License)
• Residential construction or remodeling projects totaling $600 or more in labor and materials (requires Michigan Residential Builder License or M&A Contractor License)
• Any work advertised as 'contractor' services or services requiring a contractor license (requires LARA license, even for small jobs)
• Work on commercial properties (always requires appropriate state license regardless of project value)

State Contractor Licensing Law (MI)

CRITICAL EXCLUSIONS: (1) Trade work (electrical, plumbing, HVAC, gas) is NEVER exempt—you must hold a state trade license for any work in these trades, regardless of project value. (2) Advertising as a contractor or advertising services requiring a contractor license requires a valid LARA license, even for small jobs. (3) Unlicensed work above $600 carries severe penalties: first offense $5,000–$25,000 fine and/or up to 1 year jail; subsequent violations up to 2 years jail. (4) You forfeit lien rights on residential projects if unlicensed.

County Requirements — Oakland County

Business license: Not required at the county level.

City Business License — Troy

Not required at the city level.

Permit vs. Contractor License — The Legal Difference

A LICENSE is a credential issued by the state (Michigan LARA) or city that authorizes you to perform specific types of work. It proves you have the training, experience, and qualifications to do that work safely and legally. A PERMIT is a one-time approval issued by the local building department (Troy) for a specific project. It authorizes that particular job to proceed and ensures it complies with building codes. You can have a valid license but still need a permit for each project. Conversely, even if you're exempt from needing a contractor license (under $600), you may still need permits for certain work. Many handymen mistakenly believe that if they don't need a license, they don't need permits — this is FALSE. Permits and licenses serve different purposes.

Business Entity Registration (MI)

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

Compliance Notes for Troy, Michigan

• Insurance: Michigan does not mandate general liability insurance for handymen, but it is STRONGLY RECOMMENDED. Most homeowners require proof of insurance before allowing work. Typical GL insurance costs $300–$600/year for handymen.
• Advertising: You cannot advertise as a 'contractor' or advertise services requiring a contractor license unless you hold a valid LARA license. This includes online listings, business cards, and social media. Violation can result in fines and legal action.
• Penalties for unlicensed work: First offense for unlicensed contracting in Michigan is a fine of $5,000–$25,000 and/or up to 1 year in jail. Subsequent violations carry up to 2 years jail time. These are serious criminal penalties.
• Lien rights: If you perform work without a required license, you forfeit your right to file a mechanic's lien against the property. This means you may have difficulty collecting payment.
• Trade work is never exempt: Electrical, plumbing, HVAC, and gas work ALWAYS require a state trade license, regardless of project value or whether the work is minor. Do not attempt these trades without proper licensing.
• Pre-license education is mandatory: Before applying for a Residential Builder or M&A Contractor license, you must complete 60 hours of LARA-approved pre-license education. This cannot be waived.
• Continuing education required: After obtaining your license, you must complete continuing education hours every 3 years to renew. Failure to complete CE results in license expiration.
• Troy building permits are mandatory: Even for small projects, Troy requires building permits. Failure to obtain permits can result in fines, stop-work orders, and difficulty selling the property later.
• Home occupation zoning: If operating from a home address in Troy, verify that your business complies with Troy's zoning ordinance for home occupations. Some residential zones restrict business operations.

Legal Registration Steps for Troy

Follow these steps to operate legally as a handyman in Troy, Michigan:

1. Step 1: Determine your business structure. Most handymen form an LLC for liability protection. File Articles of Organization with Michigan Secretary of State ($50 fee). Website: https://www.michigan.gov/sos
2. Step 2: Register with Michigan Department of Treasury for tax purposes (Form 518). This is FREE and required for all Michigan businesses. Website: https://www.michigan.gov/taxes
3. Step 3: If operating under a DBA (assumed name), file with Oakland County Clerk. Phone: (248) 858-0581 | Website: https://www.oakgov.com
4. Step 4: Determine if you need a state contractor license. If your projects will exceed $600 in value, enroll in a LARA-approved 60-hour pre-license education course ($199–$229). Providers: PDH Academy, Builders License Training Institute.
5. Step 5: After completing pre-license education, apply for either a Residential Builder License or M&A Contractor License through LARA ($195 application fee). Schedule and pass the state exam ($70–$117 depending on license type).
6. Step 6: Obtain general liability insurance. Recommended coverage: $1 million per occurrence / $2 million aggregate. Cost: $300–$600/year.
7. Step 7: Contact Troy Building Department at (248) 524-3300 to understand Troy's building permit requirements and fees for your specific type of work.
8. Step 8: If performing any electrical, plumbing, HVAC, or gas work, obtain the corresponding Michigan state trade license BEFORE starting work. Contact LARA at (517) 241-9316 for trade license requirements.
9. Step 9: Verify zoning compliance with Troy Community Development Department if operating from a home address. Phone: (248) 524-3300
10. Step 10: Obtain all required permits from Troy Building Department before starting each project. Do not begin work without permits.

Work You Can Do Without a Contractor License

• Minor drywall repairs and patching (under $600 total)
• Interior and exterior painting (under $600 total)
• Basic carpentry work: trim installation, door/window frame repairs, deck staining (under $600 total)
• Caulking and weatherstripping (under $600 total)
• Tile and marble work (under $600 total)

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.