Bulletproof Handyman

What Can a Handyman Do Without a License in Gaithersburg, Montgomery County, Maryland?

By , 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 magic number in MD: $500. Jobs under $500 (labor + materials combined) don't require a contractor license — you can take those as a handyman. Jobs at or above $500 require a contractor license. Know your number, know your limit.

✅ What You Can Do Without a License

Common Jobs Handymen Take in Gaithersburg

Based on the MD threshold, handymen in Gaithersburg commonly take on:

⚠️ What Requires a License

What to Tell Clients About Your Scope of Work

In MD, you can take jobs under $500 (labor + materials) without a contractor license. When a client asks, be straightforward: for jobs under this threshold, you're operating legally as a handyman. For larger projects, refer them to a licensed contractor or get licensed before bidding that work.

Business License — Gaithersburg

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

Setting Up Your Business in MD

To get paid professionally and protect yourself, register your business. LLC filing fee in MD: $100 (one-time). You'll also need a free EIN from the IRS and a business checking account.

Your Next Steps to Operating Legally in Gaithersburg

  1. 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.
  2. 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.
  3. 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).
  4. 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/.
  5. 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.
  6. Step 6: If performing electrical work, register with City of Gaithersburg ($175 for two-year period).
  7. Step 7: If performing trade work (plumbing, HVAC, gas), obtain separate state trade licenses from Maryland Department of Labor.
  8. Step 8: If operating out of a residential address, obtain home occupation permit from Gaithersburg Planning at (301) 258-6330.
  9. Step 9: Obtain general liability insurance ($500,000 minimum) before starting any work.
  10. Step 10: For each project, obtain required building permits from City of Gaithersburg Department of Permitting and Code Administration at (301) 258-6330.

Licensing rules and fees change over time, so this information may be out of date. Verify all requirements with your local licensing authority before making business decisions.