Handyman vs Contractor: What’s the Difference?

What is a handyman?

A handyman (or handyperson) is someone who does small, one-off residential projects for homeowners. 

For example, handyman services may include: 

• Installing light fixtures
• Mounting TVs
• Maintenance tasks like gutter cleaning or pressure washing
• Patching drywall
• Fixing leaky pipes and faucets
• Unclogging drains
• Caulking bathrooms and kitchens
• Assembling furniture or playground equipment
• Building shelves
• Painting 
• Small repairs like fixing a loose fence post or fixing a broken tile

Handyman tasks vary greatly based on each client’s needs and cover a wide range of services. Some choose to specialize in specific areas, like appliance repair, while others prefer to take a jack-of-all-trades approach by taking on a variety of different job types. 

In most states, handymen don’t require a license or certification for jobs below a certain value (like $500) as long as they only offer basic services. 

But if you want to take on jobs over your state’s monetary limit, or larger plumbing, electrical, or HVAC work, you may need a specialized contractor license. 

For example, while a handyman could put in a new light fixture, they may need an electrical license to install a new outlet in a room. 

Some jurisdictions also require handymen to have a business license, even if they don’t need a contractor license or special certification. 

What is a contractor?

Contractors are licensed professionals with specialized skill sets who can do certain A contractor (or general contractor) is a licensed professional who takes on larger and more complex projects for both commercial and residential clients. 

For example, contractor services often include: 

• Remodeling kitchens or bathrooms
• Installing new plumbing or electrical systems
• Building home additions, like rooms or outbuildings
• Running new wiring and outlets
• Replacing HVAC units
• Roofing and siding installation
• Demolition, like knocking down walls

General contractors may also offer project management services, overseeing licensed professionals from different trades to ensure the job is done correctly, on time, and up to current building standards. 

READ MORE: How to start a contracting business

Unlike handymen, contractors must have a valid license for the type of work they do. 

For example, if you’re planning to offer specific services, like electrical, for major renovation projects, you’ll have to complete the required training, work experience, and exams to become a licensed electrician. 

If you manage large construction projects, you’ll need a general contracting license.

Contractors may also have to obtain permits and follow strict building codes, depending on the project and their location. 

Pro Tip: Licensing, permitting, and certification requirements vary by state and city. To find out what’s required where you live, check your state’s government website and your local building or permit office.

What are the differences between a handyman and a contractor?

While there can be crossover in the types of work handymen and contractors do and who their clients are, they have some key differences. 

1. Licensing and certifications

In many states, handymen only need proof of insurance or a business license to legally offer services to clients. Contractors, on the other hand, almost always need a license to oversee big projects or work in specialized trades. 

Depending on where you live, as a handyman, you may need to: 

• Check state and local licensing and permitting requirements for handyman services
• Reach out to your local contractor’s board to find out what tasks you can perform
• Complete any requirements, like getting insurance, a business license, passing an exam, or registering with your state’s department of labor

READ MORE: Handyman licensing requirements

On the other hand, contractors have more rigid requirements and may have to: 

• Gain a minimum amount of industry experience
• Provide proof of insurance
• Register with a local contractor’s board
• Register with the state’s Department of Labor
• Pass an exam
• Complete training programs
• Obtain a license

Many contractors, like electricians, plumbers, or HVAC technicians, must finish an apprenticeship to get their license by going to school and completing supervised work experience. 

Depending on the type of work a contractor takes on, they may also need specific permits to ensure they meet building codes and regulations. 

2. Scope of work

In most states, handymen can only take on small jobs below a certain dollar amount, which usually ranges from $500 to $2500. 

Licensed contractors don’t have monetary limits on the work they complete, allowing them to take on bigger projects and complex jobs like commercial construction or residential renovations. 

Handyman work is usually one-off, whereas contracting jobs can span weeks or months and come with additional responsibilities like project management, budgeting, coordinating subcontractors, and more, depending on what you’re licensed for. 

For example, while trade-specific contractors specialize in a certain industry, like plumbing, licensed general contractors can oversee entire projects from start to finish. 

3. Expertise

Handymen have a variety of skills in different areas. They can take on a wide range of small jobs, from painting and repairing appliances to installing flooring and shower heads. 

Trade-specific contractors are experts in a single trade. They can handle jobs with large scopes and high difficulty levels. 

And general contractors know enough about each trade to manage and oversee big projects that require multiple contractors. 

Because large-scale contracts come with more risks, contractors (both trade-specific and general) must go through a strict licensing process to: 

• Ensure safety standards are met
• Protect clients from liability or faulty workmanship
• Comply with building codes and inspection requirements
• Obtain proper insurance

4. Liability and insurance

Both handymen and contractors need insurance, but the type of coverage they need can vary. 

Handymen typically only need general liability insurance to cover any accidental damage or injuries while on the job. 

Contractors may need broader coverage depending on what they offer, including: 

• General liability insurance to cover any property damage, bodily injuries, or accidents on the job.
• Workers’ compensation insurance to provide wages and medical expenses to any employees injured while working.
• Bonding (or a surety bond) to protect the client if the contractor fails to meet their contractual obligations, like not finishing the job or being unable to meet a project deadline.

Which insurance coverage a contractor needs depends on where they live and the type of work they do, like plumbers or electricians. Some states, municipalities, and clients may require proof of insurance or bonding before signing a contract or issuing a license. 

For example, government clients typically require proof of insurance and bonding before awarding a job.

Should I be a handyman or a contractor?

If you aren’t sure whether you should position yourself as a handyman or contractor, consider which option best suits the work you do, the business you want to build, and the clients you serve by weighing these perks and pitfalls. 

Being a handyman can work well if you prefer: 

• Smaller job sizes 
• Flexible scheduling
• Offering a variety of services
• Low startup costs 
• Residential clients
• Fast earning potential
• Working on your own as a sole proprietor 

Since handymen don’t typically require a formal education or long licensing processes, getting a business off the ground takes less time. 

It also comes with lower investment costs since all you’ll need are basic tools and materials, some of which you can charge to clients as needed, like caulk, drywall, or appliance parts. 

On the other hand, handymen: 

• May not be able to take on large or complex jobs
• Must be careful to comply with state and municipal licensing requirements by not completing any work that requires a licensed contractor
• Often have to take on more jobs to make higher salaries because jobs are limited to under a specific dollar amount

Being a licensed contractor is a good option if you:

• Have experience or want to build a career in a specialized trade or general contracting
• Want to take on large, higher-paying jobs and complex projects
• Prefer commercial or government clients
• Want to grow a business with employees or subcontractors

READ MORE: Should you incorporate your business?

However, contracting may not be a fit for everyone because it comes with: 

• More licensing and regulatory hurdles
• Greater liability and risk
• Higher upfront costs for materials, supplies, employee wages, etc. 
• Longer project timelines and more competitive contracts

So, if you want to focus on a variety of smaller jobs and work at your own pace, becoming a handyman could be a good fit. 

But if you want to take on big contracts from commercial or government clients and specialize in a specific trade or project management, being a contractor may better suit your goals.