Licenses and other forms of business registration help state and local governments enforce zoning, taxation, and safety policies. However, most states don’t issue a general “cleaning license.” Instead, states, as well as some counties and cities, have filing mandates that every business must comply with. Sounds confusing? Don’t worry! In this guide, we’ll walk you through the required licenses for your cleaning business and how to apply for them.
Key Takeaways
- While only 9 states require general business licenses, every state requires new companies to register with state or local authorities.
- It takes anywhere from a few hours to a few weeks to register your business, with simpler business forms clearing registration faster.
- Once you have your license, make sure you take out an insurance policy, open a business bank account, and register with state and federal tax authorities if necessary.
Do You Need a License To Start a Cleaning Business?
While only 9 states require all companies to have a general business license, every cleaning business must register with state or local authorities. Moreover, some states, counties, and cities may require a “janitorial license.” And if you’re setting up specialist operations like a healthcare cleaning service, you’ll likely need to acquire certifications for biohazards, infection control, or occupational safety.
What Licenses Are Needed To Start a Cleaning Business?
The specific type(s) of license(s) you need to start a cleaning business depend on various factors, including:
- The location of your business. States, counties, and cities have different licensing laws and regulations.
- Your business structure. Whether you’re a sole proprietorship, partnership, LLC, or corporation can impact the licenses you need.
- The size of your business. The number of employees your business has or the amount of revenue it generates may determine licensing requirements.
- The type of cleaning services you offer. Different services—like window cleaning, janitorial services, and industrial cleaning—may require specific licenses and permits.
Here are some licenses you may need.
Business license
Nine states require all businesses to obtain a business license. This allows you to legally run a business in the state, county, or city where your business is based. Business licenses are often connected to taxes and are typically issued by the Secretary of State. Check with your Secretary of State to see if your business needs one.
Vendor license
Some states require businesses that sell specific goods and services to get a vendor’s license. This license enables a business to collect sales tax from its customers and clients. For example, a carpet cleaning company that sells foaming spray to its customers will likely need this license.
The Department of Revenue or Taxation in your state usually deals with vendor’s licenses. To see what rules apply in your area, contact your county clerk.
Contractor license
You may need a contractor’s license if your cleaning business works on construction or building sites. Contractor licenses are closely regulated and often require specific insurance coverage and training. When needed, contractor licenses are typically issued at the city or county level. Occasionally, as in California, the state mandates contractor licenses for construction cleaners. Your county clerk can advise you on the licensing rules in your area.
Doing Business As (DBA) registration
Generally, sole proprietorships and partnerships operate under their own names, and corporations trade under the name on their formation documents. If you use another name for your cleaning business, like a trade name, you must usually apply for DBA registration.
Registering your business as a DBA makes the public aware that your business uses a different name.
Some owners don’t want to use their own names for privacy reasons. Other businesses register a DBA name for branding purposes and to differentiate between their products or services.
DBA registration isn’t the same as registering a trademark. If you want to trademark your business name, you must do so separately.
You must also check that your DBA name isn’t already in use before registering it. Many Secretary of State’s websites have a search function for this purpose.
Specific cleaning business licenses
Some localities require business owners to register or get cleaning licenses for specific activities. For example, janitorial employers in California must register each year with the Labor Commissioner’s Office. This registration requires employers to deliver sexual harassment prevention training every 2 years.
Permits
Depending on your location and activities, you may also need to apply for certain permits to run your cleaning business. Permits may include:
- Environmental permits: If your cleaning business deals with hazardous chemicals, you may need environmental permits. These permits regulate issues like waste disposal and water usage.
- Health and safety permits: Handling biohazardous waste, such as waste from crime scenes or medical facilities, may require permits for transport and disposal.
- Signage permits: If you run your cleaning business from home and want to advertise it, you may need a permit to put signage on your house.
How Much Does a Cleaning Business License Cost?
The cost of a cleaning business license can vary significantly based on your location and the type of approvals required. Here’s an overview of the approximate costs you’ll likely face:
| Type of License | Cost Estimate |
|---|---|
| Business License | $50 to several hundred dollars |
| Vendor License | $0 to $100 |
| Contractor License | $50 to $650 |
| Doing Business As registration | $10 to $150 |
| Janitorial License (California example) | $500 per year |
How To Get a Cleaning Business License
Here are the steps involved in applying for a license.
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Confirm which licenses, permits, and registrations your business needs
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Submit an application form and supporting documents
- Your business’s name and address.
- Your name and contact details.
- A description of your business activities.
- Your Employer Identification Number (EIN).
- Your employees’ details.
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Pay the application fee
A good starting point for understanding your obligations is to contact the relevant government department. This may be the revenue, commerce, or taxation department, or a specific licensing authority.
Your local city hall or Small Business Development Center may also offer guidance on licensing requirements.
The best way to ensure you comply with all the licensing laws that apply to your business is to speak to a lawyer. They can provide you with advice tailored to your business’s situation.
The relevant form and documents for your license application vary depending on the type of license you’re applying for. Some standard pieces of information you may need to provide include:
Many licenses, permits, and registrations involve an application fee. These fees vary depending on the type of permission you’re applying for and where you’re applying. For example, DBA registration usually costs between $25 and $100.
Renew your licenses
Licenses typically have expiration dates and must be regularly renewed, sometimes annually. Some licenses and registrations last longer. For example, DBA registrations generally last for 5 years.
How Long Does It Take To Get a License?
For most cleaning services, it takes from a few hours to a few weeks to get a business license. For the simplest businesses, registering with state authorities typically takes from a few hours to a few days. However, more complex cleaning companies that register as LLCs can expect to wait several weeks, as per Stripe.
At the city and county level, processing times can vary widely based on seasonal fluctuations in staffing and filing volume. If you want to know how long you can expect to wait in your locality, contact your county clerk for up-to-date information.
Why Do You Need a Cleaning Business License?
You might need a license for your cleaning business for several reasons.
Some licenses are required by law. Licensing laws and regulations exist at the federal, state, county, and city levels, so checking licensing requirements based on your business’s location is important. Being properly licensed is a prerequisite for bidding on public or regulated tenders and securing a cleaning contract.
Mandatory licenses also vary depending on the type of cleaning services you offer. For example, a housekeeping business may require different licenses than a commercial cleaning company.
Benefits of having licenses for your cleaning business
In addition to being required by law, holding a cleaning business license also has its advantages.
- Credibility: Customers are more likely to trust fully licensed vendors.
- Legal compliance: In many cases, licensing is mandated by law, so being licensed will save you from fines and penalties.
- Accessing higher-value contracts: Many corporate and government clients will ask to review your licenses before signing any contracts.
- Improved safety & training: Specialty licensing often requires your team to complete training, resulting in higher performance and better job safety.
- Networking opportunities: Networks of licensed professionals can connect you with employees, clients, and partners.
- Risk mitigation: Being insured and licensed will reduce your risks as a business owner.
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Licenses and permits are essential for business compliance. Cleaning company software like Connecteam helps you manage compliance and reduce the risk of associated penalties. Learn more in our guide to the best cleaning business software solutions.
Other Essential Paperwork for Starting a Cleaning Business
Licenses and permits are only one consideration when starting your cleaning business. Here are some other essentials to address.
EIN
An Employer Identification Number (EIN) is a federal tax identification number. It’s required to open a business bank account and apply for certain business licenses.
Many cleaning services need to register with the IRS to obtain an EIN. Anyone who has employees, pays federal taxes such as employment, excise, or alcohol, tobacco, or firearm taxes, or withholds income tax for a non-resident alien, must obtain an EIN. You can do so in a matter of minutes by applying via the IRS.
You must also check whether you need an EIN at the state level. To find the relevant government department in your state, look on the Small Business Administration’s website.
Business bank account
Business owners typically open a dedicated bank account for their business. This may be a legal requirement. It also helps keep your personal finances separate from your cleaning business finances and streamlines your business taxes and accounting.
Business insurance
You may need to take out the required insurance or bonds for your cleaning business. Both offer protection in the event something goes wrong. While insurance protects your business, bonds protect your client or customer.
Common types of insurance and bonds relevant to the cleaning industry include:
- General liability insurance or business liability insurance. These provide financial protection for your business in case of property damage or injury to a person other than an employee.
- Workers’ compensation insurance. This covers the cost of employees’ work-related illnesses or injuries, including medical expenses and lost wages. This type of insurance is mandatory in every state except Texas.
- Janitorial bonds. These protect customers and clients from theft by one of your employees. They’re a surety bond or agreement between your business, the bond company, and your client. If a theft occurs, the bond company compensates the client up to a certain amount. Your business then reimburses the bond company.
How much does cleaning business insurance cost?
The cost of cleaning business insurance varies by region, depending on factors such as local regulations, pay rates, and risks. According to Insurance Canopy, the national average is $520 a year.
You should seek professional advice from a lawyer or insurance broker regarding the type of insurance your business needs.
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Get the right insurance for your cleaning business. Check out Connecteam’s guide on the types of insurance your cleaning business needs.
Use Connecteam To Manage Your Cleaning Business Operations
Obtaining the right licenses is an essential step in launching your cleaning business. By law, your business may need 1 or more licenses. Failure to obtain them can result in costly fines. You can understand your licensing obligations and ensure compliance by speaking to the relevant licensing authorities or a lawyer.
Whether running a small house cleaning company or a commercial cleaning business, Connecteam is the ideal solution for streamlining your operations, including keeping track of license documents and renewals. Our all-in-one app offers a range of features specifically tailored to the cleaning industry, including time tracking, employee training, cleaning checklists, and more.
Try Connecteam for free today.
FAQs
That depends on the type of cleaning business you want to run. If you’ll be using your own car and cleaning homes solo, you can start for as little as $1,200. However, if you want to set up a professional team to clean hospitals and construction sites, expect costs ranging from $19,000 upwards.
This depends on the type of cleaning business you want to operate. For example, a simple residential cleaning business can start with as little as mops, vacuum cleaners, and soap, whereas a company specializing in healthcare cleaning will need HEPA filters, professional vacuums, and UV-C disinfection lights.
To start a cleaning business with very little cash, focus on residential clients. If you have a car and some basic cleaning supplies at home, use them for your first few jobs and reinvest what you earn in professional-grade products.
Disclaimer
This article is for general informational and educational purposes only. It is not intended as and does not constitute business, financial, or professional advice, and should not be relied upon as such. Market conditions and business outcomes can vary widely. Before pursuing new services or business strategies, consult with a qualified business advisor for tailored advice based on your business’s circumstances. Connecteam accepts no responsibility for consequences arising from actions taken or not taken based on the information present in this article.
