How to Start a General Home Repair Business

A general home repair business focuses on small to medium-sized home repair needs. From appliances and plumbing, to electrical, windows, and doors, a home repair handyman has to be able to wear many different hats.

Learn how to start your own General Home Repair Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a general home repair business by following these 10 steps:

  1. Plan your General Home Repair Business
  2. Form your General Home Repair Business into a Legal Entity
  3. Register your General Home Repair Business for Taxes
  4. Open a Business Bank Account & Credit Card
  5. Set up Accounting for your General Home Repair Business
  6. Get the Necessary Permits & Licenses for your General Home Repair Business
  7. Get General Home Repair Business Insurance
  8. Define your General Home Repair Business Brand
  9. Create your General Home Repair Business Website
  10. Set up your Business Phone System

We have put together this simple guide to starting your general home repair business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your general home repair business?

Business Name Generator

What are the costs involved in opening a general home repair business?

A general home repair company can start with and retain a low overhead operating cost. You’ll first need to get your contractor’s license, form an LLC, secure business insurance, and check to make sure you don’t need any other paperwork from your state or county to get started.

Next, you’ll want to spend money on marketing and advertising, build a website, and invest in quality tools. Consider wrapping your vehicle with your company logo or name as well as your contact information. Choose to invest in quality work tools, as well, so you have less problems while on the job. Use your website as a point of contact for customers and as a tool for showing off previous work you’ve completed.

What are the ongoing expenses for a general home repair business?

Most expenses will pertain to materials, equipment costs, internet, cell phone, website services, fuel and vehicle maintenance, and annual insurance and licensing costs.

Who is the target market?

Local and regional homeowners of all ages.

How does a general home repair business make money?

General home repair businesses make money by completing customer jobs around the house.

How much can you charge customers?

Charging for work will depend on the type of work being performed. Your hourly rate for labor should be relative to other contractors in your area. $25-30 per hour may be a good starting rate, but look up what other local home repair services charge to set competitive rates.

How much profit can a general home repair business make?

Home repairs businesses can be lucrative, especially if you’re able to work in an area with more homeowners than renters. Work to retain low overhead costs, and your business could earn between $40,000 and $70,000, annually.

How can you make your business more profitable?

Offer deck and gazebo construction, as a service, if you have the experience and knowledge. Smaller construction projects can still keep your overhead low and will offer a different possibility for revenue.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your general home repair business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history, which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a general home repair business

As we mentioned above, you’ll need to spend money on an initial ad blitz to establish your business’s presence in the community. This consists of advertising in local magazines and papers, posting flyers, creating radio and TV ads, renting a billboard, creating a website for your business, and developing a social media presence for your business. Once you are working, ask your customers to become your advertising partners by referring your business to friends and family members.

How to keep customers coming back

Customers for this kind of business like to hear success stories from other customers. Use your business website to highlight testimonials of prior customers. Include pictures on the website, as visuals tend to catch people’s attention and easily convey the quality of your work.

Retaining customers can be tricky since you don’t want past customers to have problems with your work, but you definitely want them to hire you when new work is available. If you have return customers who like your work, offer rebates for being allowed to use pictures of their houses on your website.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you are an experienced carpenter or trade worker looking for an independent business with low overhead, general home repair may be an excellent option. Knowledge of construction and installation of interior and exterior home items is necessary to get started.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a general home repair business?

A general repair business focuses on servicing customers and generating new leads for future jobs. Calling and communicating with customers will constitute some of your most important daily actions, as you need to keep current customers up to speed and inform future customers when you’ll be starting work.

You’ll also be visiting customer houses to assess what work needs to be done and to build quotes for the jobs. Additionally, expect to make frequent trips to various hardware stores and lumber yards. Customers will be looking for repairs to electrical systems and appliances throughout the house, including installing or repairing lights, fans, refrigerators, stoves, and garbage disposals. You may be called on to build or install cabinets, shelves, or closet organizers. Additionally, you may be asked to replace wall paneling of sheetrock. You may also be replacing sinks, replacing faucets, performing tile work, repiping plumbing, and replacing toilets.

What are some skills and experiences that will help you build a successful general home repair business?

As a home repair professional, you’ll need to have knowledge and experience in a wide variety of construction and machinery work. You’ll need a general knowledge of plumbing and electrical systems as well.

What is the growth potential for a general home repair business?

General home repair businesses can do well. Since many of the jobs you are completing are of a smaller scale, your materials costs will be minimal. Each job pays for the materials, in essence. You will also be able to operate successfully as an individual for most of your jobs, which avoids salary costs. Additionally, many homeowners aren’t equipped to do repairs themselves, making your services invaluable. All of these factors lead to a healthy job market for home repairs.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a general home repair business?

Advertise in hardware stores and lumber yards you use. Spread the word by talking with professionals and store associates you often see — they can recommend you to potential customers. Contractor service desks often let you post flyers for your business too.

Advertise in local homeowner magazines and newspapers. Your initial ad blitz needs to help your business name become recognizable.

How and when to build a team

As a home repair handyman, you’re often able to work independently for most jobs. You may want to have an assistant on call for jobs which need an extra set of hands. If you find you have consistent work, you may need an assistant to come on full time.

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