Key Takeaways

  • You must obtain a Louisiana cleaning business license and register with state and local agencies before operating.
  • Forming an LLC protects your personal assets and is a popular choice for cleaning business owners.
  • A DBA is required only if you operate under a trade name different from your registered business entity.
  • Cleaning businesses must comply with state tax registration, including sales tax, unemployment insurance, and federal EIN requirements.
  • Local city or parish permits and liability insurance may also be required to protect your business.

Want to know how to start a cleaning business in Louisiana? The process is fairly simple. In order to avoid double taxation, regular meeting requirements, and more, many entrepreneurs will choose to form a limited liability company (LLC) rather than a corporation. An LLC has the benefit of reaping many of the same benefits as a corporation.

Choosing a Business Structure for a Cleaning Company

Conversely, if you want your company to be public and are interested in raising substantial capital, then you should consider forming a corporation rather than an LLC. While some start-ups can be complex due to location and the industry type, the formation of a cleaning business in Louisiana is not near as hectic as the Louisiana Mardi Gras, thanks to a startup-friendly state regulatory system.

For those who want to start the endeavor of business ownership on their own, it can be as simple as following a step-by-step guide available on the Louisiana Business License Permit and Registration page through the Small Business Association, SBA. For those who wish to have a little more guidance and assistance, a Business License Service is a great resource to ensure you meet all the federal, state, and local requirements along with all the correct forms.

One of the first decisions you will make is selecting the structure of your cleaning business. The type of entity structure you choose will determine how the government will tax your business. You will choose to either operate as a sole proprietor, a partnership, an LLC, or a corporation. Regardless of the entity structure you choose, you are required to acquire a business license and an employer identification number, EIN.

Registering Your Business in Louisiana

After selecting your entity type, you must register your cleaning business with the Louisiana Secretary of State if you form an LLC, corporation, or partnership. Sole proprietors do not need to register at the state level, but many still file for added legal recognition.

Steps to register include:

  • Filing your Articles of Organization (LLC) or Articles of Incorporation (corporation).
  • Appointing a registered agent with a Louisiana address.
  • Paying the required filing fees.
  • Applying for an Employer Identification Number (EIN) through the IRS.

Registering ensures your business is legally recognized and allows you to apply for your Louisiana cleaning business license.

Choosing a Name for the Cleaning Company

Additionally, you will need to choose a name for your business. When you file a Doing Business As, DBA, this allows your business to legally operate under a trade name and will also subject you to self-employment taxation. If you have chosen to operate as an LLC or a corporation, you will not need to file a DBA because you have already registered your business name. However, if for a certain reason you plan to operate your LLC or corporation under a different name rather than what you filed on your LLC or corporation paperwork, you would need to file a DBA.

All businesses performing cleaning services must get a Louisiana Cleaning Service Business License. If you plan to sell merchandise of any kind, including food, you will need to obtain a seller's permit. Once you are operating and receiving income from residents in Louisiana, you will then owe taxes.

Local Parish and City Licensing

In addition to state-level requirements, many parishes and cities in Louisiana require local occupational or business licenses. For example:

  • New Orleans requires a general occupational license through the city’s revenue department.
  • Baton Rouge requires both a business license and sales tax registration with the local parish.

Before you begin offering services, check with your parish or city clerk’s office to confirm all local requirements. Failing to secure local licenses could result in fines or delays in legally operating your cleaning business.

How to Be Fully Licensed

Tax-specific identification numbers are required for business owners. In addition, owners may be required to have:

  • Licenses.
  • Permits.
  • Income tax withholding.
  • Sales and usage tax.
  • Seller's permit.
  • Unemployment insurance tax.

To be a fully licensed and legally operating cleaning business, you will need to provide the following:

  • Your business's legal name and physical address.
  • The name, address, social security number, and email address of all owners, partners, or officers.
  • A Louisiana Revenue Account Number Application.
  • Louisiana Tax Number Application Instructions.
  • General forms and tax information.

Insurance and Bonding Requirements

While not always mandatory, obtaining business insurance is strongly recommended for cleaning companies. Common coverages include:

  • General liability insurance: Protects against customer injury or property damage claims.
  • Workers’ compensation insurance: Required if you have employees.
  • Janitorial bonds: A form of surety bond that reassures clients in case of theft or property loss.

Many clients, especially commercial accounts, will require proof of insurance before signing contracts. Having the proper insurance and bonding not only protects your business but also builds credibility with potential customers.

Filing a DBA

Whether you are required to have one or more business or occupational licenses and permits will depend on the nature of the products, services, and business you are operating. If you are operating as a sole proprietor in Louisiana, you do not have to register a DBA with the state.

As a sole proprietor, you also have the option to operate the business under a name other than the owner's legal name by using a fictitious name. However, entities such as LLCs, corporations, and partnerships are required to register their DBA with the Louisiana Secretary of State.

Seller’s Permit and Sales Tax Obligations

If your cleaning business sells products, such as cleaning supplies or equipment, you must apply for a seller’s permit with the Louisiana Department of Revenue. This allows you to collect and remit sales tax.

Additionally, cleaning services may be subject to state or local sales tax depending on the parish. Registering early ensures compliance and avoids costly penalties or audits.

Tax Requirements

Before or on the day of employment, employers are required to distribute a withholding exemption certificate called a Form W-4 to all employees. Each employee must sign and date the form before actual employment. Employers can refer to the IRS Employer's Tax Guide for additional information on their responsibility for withholding federal taxes.

By January 31 of the following year, employers should provide every employee a copy of a Form-W-2; this form shows each employee the wages and taxes earned for the previous calendar year.

Ongoing Compliance and Renewals

Louisiana requires ongoing compliance to keep your business in good standing. Key responsibilities include:

  • Filing annual reports with the Louisiana Secretary of State if you are an LLC or corporation.
  • Renewing local occupational licenses each year with your parish or city.
  • Maintaining current tax registrations, including withholding, unemployment, and sales taxes.
  • Keeping insurance policies and bonds active and up to date.

Maintaining compliance demonstrates professionalism and helps you avoid interruptions in your ability to operate legally.

Frequently Asked Questions

  1. Do I need a Louisiana cleaning business license to start?
    Yes. All cleaning businesses in Louisiana must register with the state and obtain required occupational or local licenses before operating.
  2. Can I run a cleaning business as a sole proprietor?
    Yes, but forming an LLC offers liability protection. Sole proprietors still need local licenses and must report income for taxes.
  3. Are cleaning services in Louisiana subject to sales tax?
    In many parishes, yes. Sales tax may apply to services or products sold, so check with the Louisiana Department of Revenue and your parish office.
  4. Is business insurance required for cleaning companies in Louisiana?
    Insurance is not always required, but liability coverage and bonding are strongly recommended and often required by clients.
  5. How much does it cost to get licensed in Louisiana?
    Costs vary by parish and entity type but may include state filing fees ($100+ for an LLC), local occupational license fees, and insurance premiums.

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