A plain-English map of the free, official baselines that apply to subcontractors and handymen — safety, lead-safe work, taxes, public-project pay, and where to get money and help.
Not legal or tax advice. This is a starting point, not a substitute for a licensed attorney or accountant. Licensing and permits are set where you work — always confirm with your state and local authorities.
Job-site safety — OSHA
The federal safety rulebook for construction is 29 CFR 1926. The single most useful thing OSHA offers a small operator is a way to get checked without risk.
- Free On-Site Consultation Program. A confidential visit, run separately from enforcement, that cannot result in citations or fines. Book it via osha.gov/smallbusiness.
- The multi-employer trap. A general contractor can be cited for a hazard you create as a sub — so your safety habits affect who hires you.
- 2026: stricter subcontractor management, a heat-illness focus, and heavier enforcement. Max serious-violation penalty is now $16,550 (small employers get up to a 70% reduction).
Lead-safe work — EPA RRP Rule
If you disturb painted surfaces in any home built before 1978 — sanding, cutting, demo, window replacement — the EPA Renovation, Repair & Painting (RRP) Rule applies.
- You need a Certified Renovator on the job (a one-time 8-hour course), and the firm must be certified.
- Enforcement sharpened Jan 12, 2026 — penalties up to $46,989 per violation, per day, with remodelers and painters targeted.
- Rule of thumb: pre-1978 house + paint dust = get certified first. See EPA RRP Program.
Taxes & worker classification — IRS
As a sub or handyman you're almost always self-employed in the IRS's eyes.
- Self-employment tax + quarterly estimates. Set aside a cut of every payment. The Self-Employed Individuals Tax Center is the hub.
- Employee vs. 1099 sub — the control test. The key question is who controls how the work gets done, not just the result. Misclassifying is a common, expensive mistake.
- Paying other subs. Pay a sub $600 or more in a year and you generally file a Form 1099-NEC. Collect a W-9 up front.
Public & government-funded work — Davis-Bacon
Only relevant on federally funded projects, but the trap surprises a lot of subs. Under the Davis-Bacon Act, workers on covered jobs must be paid the local prevailing wage.
- Being 1099 or self-employed does NOT exempt you — you must still be paid prevailing wage and appear on certified payroll. See Davis-Bacon Compliance Principles.
Capital & free help — SBA
- Free mentoring and planning. SCORE mentors, Small Business Development Centers, and business-plan templates cost nothing.
- Loans — one gotcha. Most SBA loans need a real business designation (LLC or corporation); a bare sole proprietor often can't qualify. See sba.gov.
The big caveat: licensing, permits & codes are local
Everything above is the federal baseline. Contractor licensing, permits, and building codes are set at the state and local level and vary by where each job is. Check your state licensing board and the local building department, and re-check when a job crosses a city or county line.
Quick-start checklist
- Book a free OSHA On-Site Consultation — no citations, no fines
- Get RRP-certified if you touch homes built before 1978
- Pick a business structure (sole prop vs. LLC)
- Set aside a percentage of every payment for quarterly estimated taxes
- Collect a W-9 from any sub you pay, and file a 1099-NEC at $600+
- Confirm license and permit requirements with your state board and local building department
- If you bid public/federally funded work, budget for prevailing wage and certified payroll