Do handymen in Michigan need a license?

For small non-trade projects under $600 in labor and materials, no state license is required. Any project over $600 legally requires a residential builder's license, and electrical, plumbing, and mechanical work always require the specific trade license.

Can a handyman install a ceiling fan?

Yes, if it's a like-for-like replacement on an existing ceiling box. Installing a brand-new fan where none existed requires new wiring, which is licensed electrical work.

Can a handyman replace a water heater?

No. In Michigan, water heater replacement requires a licensed plumber (and, for gas units, involves gas line and venting work that must be inspected).

How do I check if someone is licensed in Michigan?

Search LARA's license verification portal at michigan.gov/lara. Reputable pros will show you their license number without being asked.

Guide

Handyman vs. Licensed Contractor: When Do You Need Which?

February 14, 2026 6 min read

Hire the wrong pro and you either overpay or under-hire.. Both mistakes are common, and both are avoidable once you know the rules.

The simple rule

A handyman is the right choice for small, non-structural, non-permit work that any competent person could complete in under a day.

When you need a licensed trade in Michigan

These specialty trades legally require a state license, regardless of project size:

Electrical: new circuits, panel work, hardwiring anything beyond a like-for-like fixture swap
Plumbing: moving supply or drain lines, water heater replacement, gas line work
Mechanical/HVAC: furnace, A/C, ductwork, gas appliance connections
Roofing over $600 in labor and materials
Any project pulling a building permit

When a handyman is the right call

For everything below, a competent independent handyman is almost always faster and cheaper than calling a licensed contractor:

Drywall patches and paint touch-up
TV mounting, shelf install, mirror hanging
Furniture assembly
Like-for-like fixture swaps (faucet, light, ceiling fan, garbage disposal)
Interior door replacement
Toilet swap
Minor trim, caulking, weatherstripping
Gutter cleaning and small exterior touch-up

What "like-for-like" actually means

"Like-for-like" means replacing an existing device with a similar one using existing wiring or plumbing. A handyman can swap a ceiling fan for a new ceiling fan on an existing box. Adding a brand-new ceiling fan where there was never a light is new circuit work — that's electrical.

Same logic for plumbing: replacing a faucet with a new faucet is fine. Adding a second sink is new plumbing.

The cost difference

For small jobs, a licensed contractor is often 2–3x the cost of a handyman — not because the contractor is greedy, but because their business model is built around larger projects with permits, insurance, and licensed sub-labor.

Calling an electrician to swap a $25 light fixture might cost $300–$450 with the trip charge. A handyman does the same job for $125–$225.

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Frequently asked questions

Do handymen in Michigan need a license?: For small non-trade projects under $600 in labor and materials, no state license is required. Any project over $600 legally requires a residential builder's license, and electrical, plumbing, and mechanical work always require the specific trade license.
Can a handyman install a ceiling fan?: Yes, if it's a like-for-like replacement on an existing ceiling box. Installing a brand-new fan where none existed requires new wiring, which is licensed electrical work.
Can a handyman replace a water heater?: No. In Michigan, water heater replacement requires a licensed plumber (and, for gas units, involves gas line and venting work that must be inspected).
How do I check if someone is licensed in Michigan?: Search LARA's license verification portal at michigan.gov/lara. Reputable pros will show you their license number without being asked.