Handyman Business Permit Requirements in San Diego, CA

1. EIN (Employer Identification Number)

   Required if you have employees or operate as an LLC/corporation. Free from the IRS.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. California CSLB Contractor License (Required for projects over $1,000)

   As of January 1, 2025, California law (AB 2622) allows handymen to perform work up to $1,000 per project (combined labor and materials) without a CSLB license. Any job over $1,000 requires a valid CSLB contractor license. Class B (General Building Contractor) is the most common for handymen. Initial application fee: $450; license fee: $200 (sole owner). Requires 4 years of verifiable experience and a $25,000 contractor's bond. Workers' compensation insurance is now mandatory for all licensed contractors (effective January 1, 2025).

   Official government source

   $650–$1,000 initial (fees) + $25,000 bond (premium ~$200–$400/year) + workers' comp·3–6 months

   $650–$1,000 initial (fees) + $25,000 bond (premium ~$200–$400/year) + workers' comp

   3–6 months

1. San Diego Business Tax Certificate

   All businesses operating in San Diego, including home-based handyman businesses, must obtain a Business Tax Certificate from the City Treasurer. Contractors are taxed based on gross receipts. New businesses pay a $34 base fee plus additional charges based on number of employees and revenue.

   Official government source

   $34–$150/year (varies by gross receipts)·1–2 weeks

   $34–$150/year (varies by gross receipts)

   1–2 weeks

Official Sources

• California Contractors State License Board (CSLB)
• City of San Diego — Business Tax
• CSLB — Fee Schedule

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