Starting a cleaning business can be a profitable and fulfilling venture. With the increasing demand for residential and commercial cleaning services, this industry offers great potential for entrepreneurs. However, before you can begin mopping floors or vacuuming offices, there is one crucial step you cannot skip—getting properly licensed and insured.
Many people assume that a cleaning business is simple and easy to set up, and in some ways it is. But operating without the necessary licenses and permits can lead to hefty fines, legal trouble, and damage to your business’s reputation. This article walks you through the key licenses and registrations you’ll likely need to start a cleaning business in the United States—whether you’re going solo as a residential house cleaner or launching a full-scale commercial janitorial company.
Why Are Business Licenses Important?
Licenses are not just legal formalities. They serve important purposes:
- They protect the public by ensuring business owners follow sanitation, insurance, and safety standards.
- They build trust with clients who want to know they’re hiring a legitimate service provider.
- They protect you from fines, lawsuits, and other legal trouble.
- They’re often required to sign commercial contracts or access business bank accounts.
Types of Cleaning Businesses
Before diving into licensing requirements, it’s important to understand what type of cleaning business you’re starting. Each type may have different requirements:
| Type of Business | Description |
|---|---|
| Residential Cleaning | Home cleaning, apartment cleaning, maid services. |
| Commercial Cleaning | Office buildings, warehouses, retail spaces. |
| Specialized Services | Carpet cleaning, window washing, medical facility cleaning. |
1. Register Your Business Name
Business registration is the first step. You’ll need to decide whether you’re operating as a sole proprietorship, LLC (Limited Liability Company), or corporation.
- DBA (Doing Business As): If your business name is different from your legal name, you must register a DBA with your state or county.
- LLC or Corporation: Offers personal liability protection and is often a better choice for business growth and partnerships.
✅ Tip: Most cleaning businesses start as an LLC due to its simplicity and protection.
2. Obtain a Business License
Almost every state and local government requires a general business license.
- Issued by: City or county clerk’s office or local business licensing department
- Cost: Typically ranges from $50 to $500 annually
- Renewal: Often required yearly
Make sure to check with your local municipality because some cities or counties have additional requirements for cleaning companies.
3. Employer Identification Number (EIN)
If you plan to hire employees, you’ll need an EIN (Employer Identification Number) from the IRS. Even if you’re a solo cleaner, having an EIN is useful for opening business bank accounts and managing taxes.
- Issued by: IRS
- Cost: Free
- Apply: IRS Website
4. Sales Tax Permit (If Applicable)
Some states require you to collect sales tax on cleaning services.
- Check your state’s department of revenue to know if you need to charge sales tax.
- Apply for a sales tax permit if required.
- You’ll then be responsible for filing sales tax returns monthly, quarterly, or annually.
Note: Sales tax rules vary widely by state. Residential cleaning is often tax-exempt, but commercial services may not be.
5. Occupational or Industry-Specific Licenses
While not every state requires this, some localities demand special cleaning licenses for:
- Pest control cleaning
- Mold or hazardous waste removal
- Biohazard cleaning
- Carpet or upholstery cleaning
If you use strong chemicals or work in sensitive environments, you might need certifications like OSHA compliance or chemical handling training.
6. Bonding and Insurance
While not always a “license,” being bonded and insured is critical—and sometimes required to operate.
Types of Insurance You’ll Need:
| Insurance Type | Purpose |
|---|---|
| General Liability Insurance | Protects against damage or injury caused by your work. |
| Workers’ Compensation Insurance | Required if you have employees. |
| Janitorial Bond or Surety Bond | Reimburses clients if an employee steals or damages property. |
Clients, especially commercial ones, often demand proof of bonding and insurance before hiring you.
7. Contractor’s License (Rare Cases)
In some states or cities, if your cleaning involves extensive work on property or hazardous materials, you might need a contractor’s license. This is rare for general cleaning services but worth checking with your state licensing board.
8. Environmental Permits (Specialty Services Only)
If your business deals with waste disposal or uses harsh chemicals (e.g., pressure washing, graffiti removal), you may need EPA-related permits or need to comply with local environmental regulations.
- Contact your local environmental agency for specifics.
9. Business Bank Account and Financial Compliance
While not technically a license, it’s wise to open a business bank account to keep your finances separate and track expenses for taxes.
Financial Setup Checklist:
- Business checking account
- Accounting software or a bookkeeper
- Separate credit card for business expenses
10. Additional Local Permits
Depending on your location, you may need:
| Permit/License | Required By |
|---|---|
| Home Occupation Permit | If operating from home |
| Zoning Permit | For commercial office |
| Signage Permit | If advertising outside a location |
Always check your local city hall or county clerk’s office for these smaller, but important, permits.
Quick Checklist Summary
| Task | Required For |
|---|---|
| Register Business Name or LLC | All businesses |
| Get Business License | All locations |
| Obtain EIN | If hiring or opening bank accounts |
| Apply for Sales Tax Permit | In states where cleaning is taxable |
| Industry-Specific License | If doing specialized cleaning |
| Get Bonded and Insured | For legal protection and client confidence |
| Contractor’s License | Rare; hazardous or large-scale jobs |
| Environmental Permits | Pressure washing, chemical disposal |
| Local Permits | Based on location (zoning, signage, etc.) |
Where to Apply
Here are links to commonly used sites for licensing and permits:
| Task | Website |
|---|---|
| IRS EIN Application | https://irs.gov |
| State Business License | Your state’s secretary of state website |
| Local Permits | City or county government site |
| Sales Tax Permits | State department of revenue |
How Long Does It Take to Get Licensed?
The process can take a few days to a few weeks, depending on your state and local requirements. Start early and follow up regularly to avoid delays.
Cost to Start a Cleaning Business (Licensing & Legal)
| Item | Estimated Cost |
|---|---|
| Business License | $50 – $500 |
| EIN | Free |
| LLC Formation | $50 – $300 |
| Insurance (annual) | $300 – $1,000+ |
| Bonding (annual) | $100 – $500 |
| Specialized Licenses | Varies |
| Total Initial Cost | $500 – $2,500+ |
Conclusion
Starting a cleaning business is more than buying supplies and finding clients. It starts with setting up your business legally and professionally. By securing the correct licenses, registering your business properly, and carrying the right insurance, you not only stay compliant with the law but also build credibility and trust with your customers.
Skipping these steps can lead to trouble down the road—fines, lost contracts, and even being shut down. But taking the time now to get your licenses in order is an investment in your success.
Whether you’re launching a solo house cleaning service or a full-scale janitorial company, use this article as your roadmap. With the right licenses and permits in place, you’ll be well on your way to running a cleaning business that’s not only profitable—but built to last.