What Licenses Are Needed To Start A Cleaning Business?
Thinking about launching a cleaning business? Great choice!
The cleaning industry is bustling, and starting your own business could be a ticket to steady growth and a loyal client base. But before you dive in, there’s one key step: getting the right cleaning business license.
In this guide, we’ll break down the essentials of obtaining a cleaning license, why it’s a must-have, and how to set yourself up to operate legally, so you can kick off your new business with confidence.
Jump to these Steps to Getting a Cleaning Business License
What Exactly Is a Cleaning Business License?
A cleaning license is simply a permit that lets you run your cleaning business legally within your city or county. It confirms to clients that you’re a legitimate business, operating above board, and meeting local rules and regulations. Requirements for this license vary depending on where you are and whether you’re offering residential or commercial cleaning services.
Why Do You Need a Cleaning Business License?
If you’re asking, “Can I just skip the license and start cleaning houses?”—you’re not alone! But getting licensed is essential for a few reasons:
- Builds Credibility: A license shows clients that you’re a professional who follows the rules.
- Protects You Legally: Without a license, you risk fines or even getting shut down. Licenses help you avoid these legal hassles.
- Opens Up More Jobs: Especially for commercial engagements, clients want to hire licensed cleaners. Being licensed can get you access to better contracts.
- Keeps Insurance Simple: Most insurance providers will only cover licensed businesses, so getting the license can make your insurance process smoother.
What Types of Licenses and Permits Might You Need?
Starting a cleaning business isn’t as simple as one-size-fits-all. Different services call for different permits. Here are the most common ones:
General Business License:
Every cleaning business, whether small or large, typically needs a general business license. This permit gives you the green light to operate legally in your area. Requirements and fees vary, so check with your city, state, or county’s business office.
DBA (Doing Business As)
If you’re planning to operate under a brand name different from your personal name or LLC name, you’ll need a DBA. This is popular among solo entrepreneurs looking to create a unique, market-friendly brand. For example, Sarah Johnson owns an LLC named Johnson Services LLC but wants to operate as “Sparkle Clean Pros.” To legally use this name on ads, cards, or her website, she’d file for a DBA. While optional, you can also trademark the name with the USPTO for added brand protection.
Vendor’s License or Sales Tax Permit
If you’re planning to sell cleaning supplies alongside your services, a vendor’s license or sales tax permit is essential. It allows you to legally collect sales tax from customers.
Environmental Permits
If your business deals with hazardous materials (think commercial cleaning with strong chemicals such as sodium hydroxide, commonly known as lye or caustic soda, often used in heavy-duty degreasers and drain cleaners, you may need an environmental permit. This ensures you’re disposing of waste and using chemicals responsibly.
Specialized Cleaning Licenses
Certain cleaning services—like carpet cleaning, pest control, or mold removal—require additional certifications. These licenses may involve training and exams, so check what’s necessary in your area.
How to Get a Cleaning Business License: A Quick Guide
Now that you know why you need a license, let’s get you through the process of how to get one, step-by-step:
Step 1: Choose Your Business Structure
Will you be starting solo, partnering up, or forming an LLC or corporation? Choosing the right structure is key, as each option comes with its own benefits and tax implications.
A sole proprietorship is the simplest choice, ideal if you’re working independently. If you’re teaming up with someone, a partnership may be a good option.
For added liability protection and potential tax advantages, consider an LLC or corporation, which can provide greater flexibility and security as your business expands. Make sure to select a structure that aligns with both your immediate needs and long-term goals.
Step 2: Register Your Business
Once you know your structure, it’s time to officially register your business. For most, this involves filing online for an Employer Identification Number (EIN) from the IRS if you plan to hire employees.
Step 3: Apply for Your General Business License
Visit your local city hall or county office to apply. Requirements and costs vary, so be prepared with your business details—like your EIN, business name, and address.
Step 4: Get Any Other Necessary Permits
Depending on what you offer, you might need extra permits. Reach out to local government offices or check their websites to see what applies to you.
Step 5: Complete Specialized Training (If Needed)
If you offer unique services like pest control or mold removal, you may need to get certified. Look for training programs in your area to make sure you’re covered.
How Much Does a Cleaning License Cost?
License costs vary based on where you live and what you offer. Here’s a quick rundown of typical fees:
- General Business License: $50 to $400, depending on your city or state.
- DBA Registration: $10 to $100, depending on the area.
- Vendor’s License or Sales Tax Permit: These are often inexpensive, around $10 to $50.
- Environmental Permits: Costs vary widely; for hazardous cleaning, permits can cost up to $500.
- Specialized Certifications: Training and certifications can range from $200 to $800 per course.
- Driver’s License: Required if you or your employees drive company vehicles. Costs vary by state, typically between $20 and $100 for issuance or renewal.
How Long Will It Take to Get Licensed?
The timeline varies. General business licenses are typically processed within a few weeks, but specialized permits or environmental certifications can take a few months, depending on testing and approval processes.
Do You Need Insurance for a Cleaning Business?
Short answer: yes! Insurance gives clients confidence in your services and protects you if something goes wrong. While getting your cleaning license is essential, insurance is crucial, too. Basic insurance policies for cleaning businesses often include:
- General Liability Insurance: Covers accidents and damages.
- Worker’s Compensation Insurance: Required if you have employees, protecting against work-related injuries.
- Commercial Auto Insurance: Covers any vehicles used for work.
FAQs About Cleaning Licenses
Do I Need a License for Both Residential and Commercial Cleaning?
Yes, most businesses will need a general business license for both. But commercial cleaning might require additional permits if you use strong chemicals or handle hazardous waste.
Can I Start a Cleaning Business Without a License?
Technically, you could, but it’s risky. Without a license, you could face fines or get shut down. Being licensed protects both you and your clients.
Can I Transfer My License if I Move?
Licenses are often state-specific. If you relocate, check the requirements in your new area and reapply if necessary.
How Often Do I Need to Renew My License?
Most licenses need annual renewal. Stay in touch with local authorities to keep your license up-to-date.
Final Thoughts
Starting a cleaning business can be a fantastic journey, but having the right cleaning license is essential to operate smoothly.
From building trust with clients to legally protecting your business, getting licensed is the first step to growing a successful cleaning company.
Plus, once you’re all set up, tools like InvoiceFly can help streamline your daily admin tasks, keeping your focus on what you do best—cleaning!
Ready to get started? Grab that license, get insured, and begin building your cleaning business in 2024!
Make Managing Your Business Easier with Invoice Fly
Once you are up and running, your next challenge is staying on top of clients, invoices, and scheduling. Managing it all can get tricky—but tools like InvoiceFly’s Cleaning Business Software are here to help you save time on admin tasks and keep everything organized.
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