If you are working as a contractor or handyman in Michigan, it can be difficult to know exactly which projects require a license and which do not. The rules are clear once you understand them, but the confusion often leads to contractors unintentionally operating outside the law.

This guide breaks down what Michigan requires so you can stay compliant, protect your business, and make informed decisions about the work you take on.

What Michigan Law Says About Contractor Licensing

In Michigan, the difference between licensed and unlicensed work depends on the type of work and the total contract value, including labor and materials.

Michigan law requires a Residential Builder License or a Maintenance and Alteration Contractor License for any residential construction or remodeling project that totals six hundred dollars or more.

This applies to work such as:

• Carpentry

• Roofing

• Siding

• Masonry

• Concrete

• Insulation

• Doors and windows

• Excavation

• Gutters

• Tile or marble installation

If the job meets or exceeds the six-hundred-dollar threshold and involves any of these trades, a license is required.

When Small Projects Do Not Require a License

Michigan allows unlicensed individuals to perform certain types of work, provided the project does not meet the conditions that require a license.

You generally do not need a license if:

• The total project value is under six hundred dollars

• The task involves minor repairs or cosmetic adjustments

• The work does not involve any trades listed by LARA

• You are not representing yourself as a builder or contractor

Examples include:

• Small drywall patches

• Minor painting

• Simple fixture replacements

• Basic maintenance tasks

Even if a job falls under the dollar limit, contractors must still follow local permitting requirements, building codes, and safety laws.

Why Staying Licensed Matters …

A license does more than keep you compliant. It improves your credibility and opens the door to larger, higher-value projects.

Benefits include:

• Greater trust from homeowners

• The ability to bid on residential construction work

• Legal protection when signing contracts

• Eligibility for larger projects

• Reduced risk of fines or work stoppages

Most importantly, working without a required license can result in serious penalties from the Michigan Department of Licensing and Regulatory Affairs.

The Risks of Doing Work Without the Proper License

Contractors who perform work that requires a license but do not have one may face:

• Fines issued by LARA

• A prohibition on collecting payment from homeowners

• Lawsuits from dissatisfied clients

• Difficulty obtaining a future license

In some cases, homeowners can legally refuse to pay for completed work if the contractor was not licensed for that type of project. This creates significant financial risk for anyone operating without the correct credentials.

How to Get Licensed in Michigan:

Getting licensed is straightforward when you work with an approved provider.

To earn a Residential Builder or Maintenance and Alteration Contractor License, you must:

• Complete 60 hours of pre-licensing education from an approved school (like us).

• Apply through LARA.

• Pass the Michigan licensing exam.

You can find approved training courses directly through the Michigan Institute of Real State.

The Bottom Line …

If you plan to work on residential construction projects valued at six hundred dollars or more in Michigan, you need a license. Understanding where the line is drawn helps you avoid legal issues and positions your business for growth. The Michigan Institute of Real Estate offers fully approved licensing courses designed to help you earn your builder or contractor license efficiently and confidently.