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A handyman or handywoman provides a service of physical labour that entails the repair, maintenance, or construction of something. For the purposes of this article, we’ll stick with the term ‘handyman’ as it’s the most commonly used phrase. In 2025, the demand for reliable and skilled handymen remains strong, with both residential and commercial clients looking for professionals to maintain their properties.
A handyman business is an essential service that will always be in demand. A well-established venture in this field has the potential to be both successful and stable, so if you’re thinking of starting one, you’re definitely on the right track!
However, like any other business, it’s important to get all the legal and business matters sorted so you can focus on delivering quality work without unnecessary worries.
When starting a handyman business, you need to consider aspects such as business structure, tax obligations, legal agreements, and more – we’ll delve into these topics below, so keep reading to find out more.
How Do I Start A Handyman Business?
Starting a handyman business in Australia in 2025 follows the same foundational steps as any other business. To get your venture off the ground and legally recognised, you will need to apply for an Australian Business Number (ABN). It’s also a good idea to review the latest legal requirements for starting a business to ensure you comply with current regulations.
Once you’ve decided on a business name, make sure to get your business name registered without delay.
Next, open a dedicated bank account for your business. Depending on the business structure you choose – such as operating as a sole trader or establishing a company – a separate bank account may be required. Keeping your personal and business finances separate not only simplifies accounting and tax returns but also reinforces your professional image. If you’re running your business from home, our guide on how to run a business from home might offer useful tips.
What Do You Need To Start A Handyman Business?
To kick off your handyman business, first decide on the range of services you’ll offer and ensure you have the necessary skills and training. Staying updated with industry trends and new technology is crucial in 2025, where innovations such as online booking systems and digital invoicing are becoming standard.
Next, invest in quality equipment and secure reliable transportation – both are vital since you’ll be travelling from job to job. Research suppliers thoroughly; our insights on Supply Agreements can help you negotiate better terms and protect your interests.
Finally, organise all the essential paperwork such as business registration, tax compliance, licences, and legal agreements. We’ll explore these aspects in more detail below.
Which Business Structure Do I Choose For A Handyman Business?
Many handyman businesses choose to operate as a sole trader. This structure means there is one owner who is personally liable for the business’s obligations. Its simplicity and low setup costs make it an appealing starting point for many.
Alternatively, you may choose to operate as a trust or a company. A company structure establishes your business as a separate legal entity, which can limit your personal liability – a crucial consideration if you plan to expand or engage in higher-risk projects.
Operating as a trust means that the business’s assets are managed by a trustee on behalf of the beneficiaries. Each structure has its own benefits and legal requirements; be sure to consult our guide on business structure considerations to choose the best option for your circumstances.
Setting up a company involves appointing directors, complying with the Australian Securities and Investments Commission (ASIC) requirements, and following the Corporations Act 2001 (as amended for 2025). Although this process is more complex, the benefits of limited liability can be invaluable if you plan for significant growth.
Do I Need A Licence To Start A Handyman Business?
Licensing requirements vary by state and territory, so it’s essential to check with your local authority. Operating without the proper licence can lead to hefty penalties. For example, in NSW, a contractor licence or a minor maintenance and cleaning licence is required for work valued at over $5,000. Specialized contractor licences may also be necessary for certain types of work.
Always verify the current licensing rules relevant to the services you provide. Our comprehensive guide on legal requirements is a great resource to ensure you’re compliant in 2025.
Registering For Taxes
As a business owner, you’re required to meet your tax obligations. In 2025, this typically includes paying income tax and GST if your turnover exceeds the necessary threshold. A clear understanding of these duties will help you manage your finances effectively.
Registration Costs
Registering your business and obtaining the required licences come with associated fees. The exact costs will depend on your chosen business structure and the specific licences you need. For updated fee details in 2025, refer to resources such as the business registration website and ensure these expenses are factored into your budget.
Proper budgeting for these registration costs is crucial to ensure your business starts on a solid financial footing.
Do I Need Insurance For A Handyman Business?
While there is no legal requirement to have full-scale insurance coverage for a handyman business, it is strongly recommended to protect your assets and mitigate risks. Insurance can provide financial security in the event of accidents or unforeseen incidents.
In addition to general business insurance, if you employ others, you are legally required to have Workers’ Compensation insurance. It’s also advisable to consider public liability and product liability insurance, especially if you deal with expensive equipment or hazardous materials.
Do I Need A Handyman Business Plan?
A robust business plan is indispensable for outlining your business goals, resources, strategies, and timelines. In 2025, having a clear roadmap is more critical than ever as the business landscape becomes increasingly competitive.
Your business plan should include details such as:
- Budget and financial forecasting
- Market research and industry insights
- Future goals and expansion plans
- Operational strategies
- Marketing and promotional tactics
Can I Start A Franchise?
There are two main paths into franchising:
- Buying a franchise (becoming a franchisee)
- Starting your own franchise (becoming a franchisor)
If building a business from scratch seems overwhelming, you might consider purchasing a franchise of an already established handyman business. This approach provides you with proven systems, trademarks, and a comprehensive business model that can give you a competitive head start.
Alternatively, if your handyman business is already thriving, you could extend your reach by becoming a franchisor, allowing others to operate under your brand while you concentrate on strategic growth.
If you need professional guidance, feel free to chat to our franchise lawyers today.
What Legal Documents Do I Need For A Handyman Business?
Having the right legal documents in place is critical for protecting your business from disputes and miscommunications. These documents ensure that the expectations of both your clients and staff are clearly set from the outset.
Employment Agreements
Hiring staff can significantly boost your business efficiency and capacity. When you do, it’s imperative to have written Employment Contracts that outline roles, responsibilities, compensation, working conditions, and other essential terms.
A comprehensive Employment Contract should cover:
- The expected duties and responsibilities
- The scope of work
- Payment and benefits
- Working conditions and arrangements
- Leave entitlements and other benefits
- Non-compete and confidentiality clauses
- Termination conditions
Our experienced contract lawyers can help tailor these agreements to meet the specific needs of your handyman business.
Supply Agreement
Reliable suppliers are crucial to keeping your operations smooth. A well-drafted Supply Agreement stipulates the details of your arrangement with suppliers – including delivery schedules, payment terms, warranties, liabilities, and procedures for dispute resolution.
This helps safeguard your business against potential supply chain issues.
Terms And Conditions For A Handyman Business
If you have a website or provide online booking services, having clear Website Terms and Conditions is essential. This agreement governs how users interact with your site and helps limit your liability by setting out the rules of engagement.
For example, you might require customers to register or agree to specific booking terms before proceeding.
NDAs And Confidentiality Clauses
Since a handyman often works in private spaces, clients may share sensitive information during the course of your work. Using Non-Disclosure Agreements or incorporating confidentiality clauses in your contracts can provide reassurance and protect all parties involved.
If you’re hiring staff, adding a confidentiality clause to their contracts ensures that any proprietary or client information remains secure within your business.
Non-Compete Clauses
Non-Compete Clauses help protect your business by preventing employees from using sensitive information gained during their tenure to directly compete against you. This can be particularly important for safeguarding client relationships and proprietary techniques.
Wet Or Dry Hire Agreement
When it comes to renting out equipment, it’s important to distinguish between a dry hire and a wet hire agreement. A dry hire agreement covers the rental of equipment by itself, while a wet hire agreement includes the rental of both the equipment and an operator.
Clarifying these details in writing ensures that all parties understand their responsibilities and liabilities regarding the equipment hire.
Professional Services Agreement
For projects that require specialised skills, a Professional Services Agreement is indispensable. This agreement outlines the specific services provided, the project timeline, payment details, and other critical terms to ensure both you and your clients have a clear understanding of expectations.
- A detailed description of the services provided
- Project timelines and deadlines
- Payment arrangements and methods
This agreement is especially useful in preventing disputes and ensuring that all deliverables are clearly defined.
Do I Need An Exclusivity Clause For My Handyman Business?
This consideration depends entirely on your individual circumstances. An exclusivity clause restricts you from offering your services to competitors or in specific regions for a set period. It is not mandatory, and you should never feel compelled to agree to terms that might unduly restrict your business growth.
| Example Stan has been hired to build a bird feeder for Jemma. However, Jemma doesn’t want anyone else in her area to replicate her design. In their contract, an exclusivity clause prevents Stan from building another bird feeder for anyone else in her locality while he’s working for her. |
If you believe an exclusivity clause is not in the best interest of your business, or if you suspect the clause might be unfair, seek expert advice before agreeing to any terms. Our resource on unfair contract terms can provide further insights.
If you need assistance or further advice regarding exclusivity clauses, please contact us for expert legal guidance.
What Should I Do About Liability As A Handyman Business?
Liability refers to your legal responsibility when operating your business. For instance, if someone suffers an injury as a result of negligence in your work, you may be held liable and required to pay damages.
Insurance is a key strategy in managing this risk, and including limitation of liability clauses in your contracts can further protect your business financially.
Limitation Of Liability
A limitation of liability clause can cap the amount of damages payable if you are found liable, preventing severe financial losses. However, it won’t apply in cases of gross negligence or fraudulent conduct.
Thinking Of Starting A Handyman Business?
Starting a handyman business in 2025 presents exciting opportunities. With modern technology and an increasing demand for professional repair and maintenance services, now is a great time to launch your venture.
Review all aspects of your business planning—from obtaining the necessary licences to setting up comprehensive legal agreements—so you can focus on delivering outstanding service. Our detailed guides on business structure and intellectual property provide additional insights to strengthen your business.
Moreover, embracing digital solutions such as online invoicing systems and booking platforms can streamline your operations and give you a competitive edge. For further insights on establishing your digital presence, you may find our guide on moving your business online legally invaluable.
To summarise what we’ve discussed:
- Ensure you have the appropriate skills, qualifications, and licences to offer your services.
- Develop a comprehensive business plan that outlines your budget, market research, and future goals.
- Select the best business structure—whether as a sole trader, company, or trust—and register your business and name accordingly.
- Register for any relevant tax obligations and consider obtaining insurance to protect your assets and limit liabilities.
- Have all essential legal agreements in place, including employment contracts, supply agreements, and website terms and conditions.
- Prepare for unforeseen scenarios by incorporating limitation of liability clauses and ensuring adequate insurance cover.
If you would like a consultation on starting a handyman business in 2025, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligation chat.
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