In Montana, a handyman can do work valued under $2,500 without a license. However, the Montana Department of Labor and Industry requires a handyman to register as an independent contractor or a subcontractor to take jobs valued over $2,500.
What Can an Unregistered Handyman Do?
In the state of Montana, a handyman does not need to register if their work is “casual, minor, or inconsequential” or costs less than $2,500 total for a single job. This is according to the Montana Code Annotated 2023.
So, what jobs are considered casual, minor, or inconsequential? Here are some examples of small jobs handymen can do unregistered:
- Patching drywall
- Assembling furniture
- Repairing fence
- Installing window screens or screen doors
- Repairing doors and windows
- Hanging pictures
- Pressure washing
- Cleaning gutters
And, of course, a homeowner does not have to register to work on their own property as long as they don’t intend to sell it.
What Are an Unregistered Handyman’s Limits?
Even with no licensing system, Montana handymen are limited by state and local regulations. Any major jobs are out of reach for unregistered professionals. In addition, Montana requires separate registrations for specialty trades like plumbing and electrical work, which are governed by the Montana Department of Plumbers and the Montana Electrical Board respectively.
Here are some examples of work that are beyond an unregistered handyman:
- Modifying existing structures
- Installing light fixtures
- Running pipes
- Constructing satellite structures like gazebos
- Wiring or rewiring a room
Remember that different areas may have local registration and licensing requirements. For example, Missoula and Billings require separate local licensing for jobs like gas fitting and sidewalk paving.
Penalties for Exceeding Handyman Work Limits
According to the Montana Code Annotated 2023, taking on projects worth more than $2,500 without a contractor license can lead to fines of up to $5,000, depending on the number of violations.
Getting Registered for Larger Jobs
If a handyman wants to take larger jobs, is hired by another contractor or company, or wishes to hire employees themselves, they need to register with the MDLI. Thankfully, the process is fairly simple. All a handyman needs to do is meet the requirements (most prominently valid worker’s compensation insurance), submit an application, and pay a small fee.
The application process, including requirements and forms, may differ depending on whether you’re applying to become an independent contractor or a construction contractor, but the basic steps remain the same. For more information, check out the official guide to registering as an independent contractor.
Independent Contractor Exemption Certificates
In addition to the registration requirements, all Montana handymen and contractors are required to hold valid worker’s compensation insurance, including independent contractors. However, if an independent contractor chooses not to hold insurance, they can instead opt for what is called an Independent Contractor Exemption Certificate.
An ICEC allows registered independent contractors to do construction work without worker’s comp insurance. It is not an additional qualification and does not allow a contractor to do any more work than they would have. All it does is waive the rights they would have otherwise had with insurance. Read the official ICEC guide for more information.
Registering Your Business
You don’t have to register your business to operate it as a sole proprietor. However, if you want a different name than your legal name, you should register a Doing Business As (DBA) name. You should register your business with the state to set it up as an LLC.
Application process for DBA:
- Choose a business name by checking its availability on the Montana Secretary of State Business Search website.
- File DBA online by creating an account on the Montana Secretary of State ePass website.
- Pay a filing fee of $20. You can pay an additional fee of $20 for 24-hour expedited service or $100 for 1-hour processing.
Application process for LLC:
- Choose a business name by searching for its availability on the Montana Secretary of State Business Search website.
- Appoint a registered agent to receive legal documents and notices.
- File articles of organization on the Montana Secretary of State website. The filing fee is $35.
- Create a Montana operating agreement by consulting with an attorney (not legally required, but highly recommended).
- Get an Employer Identification Number (EIN) on the Internal Revenue Service website and set up a business bank account.
- File the Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN).
Is There an Exam to Become a Handyman in Montana?
No, passing an exam or completing a certification course isn’t required to become a handyman in Montana.
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Main Image Credit: Sergii Pavlovskyi / Adobe Stock / License created using Canva Pro
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