Key Takeaways:

  • To start a cleaning business, you typically need a business license, DBA registration, and a vendor's license.
  • Additional permits, such as occupational licenses, environmental permits, and waste disposal permits, may be required depending on the state and city regulations.
  • Insurance coverage, including general liability insurance, workers' compensation, and bonding, is essential for legal compliance and client trust.
  • Certain states may require specific certifications for handling hazardous cleaning chemicals or operating large-scale commercial cleaning services.
  • Registering for an Employer Identification Number (EIN) with the IRS is necessary if hiring employees.
  • Many states require compliance with OSHA safety standards and proper training for employees.
  • Not obtaining the required licenses and permits can lead to fines, legal issues, and potential business closure.

What license is needed to start a cleaning business? Before you can start your cleaning business, you will need both a vendor's license and a Doing Business As (DBA) registration. Make sure you have both of these licenses prior to offering your services.

Overview of Cleaning Business Licenses

There are a variety of reasons that you might want to start a cleaning business. Starting and running a cleaning business can be both financially rewarding and personally fulfilling.

When you offer commercial and residential cleaning services, you'll have the ability to complete several important tasks:

  • Set your own work schedule.
  • Build a strong and loyal client base.
  • Scale your business to increase profits.

In almost every location across the country, you will need to obtain a business license before you will be able to start your cleaning company. A business license ensures compliance with local regulations and allows you to properly file and remit taxes. Also, if you hire any alien workers for your cleaning business, you will need a business license so that you can fill out the required I-9 forms.

If you're considering starting a cleaning business, you will need to decide whether you will purchase a franchise or start an independent business. Starting your own cleaning business is much more affordable than opening a franchise. On the other hand, you will likely have more success early on by starting a franchise, as you will usually be provided with a ready-made marketing plan. Regardless of the option you choose, you will need a business license, as well as equipment and supplies, before you can begin offering cleaning services.

The goal of cleaning businesses is to make a profit by providing cleaning services to commercial buildings and residential homes. When you're ready to start your cleaning business, you will need to acquire a Doing Business As (DBA) registration and a vendor's license.

You can get a DBA registration application from either your county administration office or office of the county clerk. Complete and submit your application along with the required fee. Once approved, your business name will be officially registered. Before you file your DBA registration application, you will need to come up with a name for your business. Your name should be catchy while reflecting the services that you offer. Your vendor's license will be issued when your DBA application is approved. This license allows you to collect sales taxes from your clients, which is required in the majority of states.

If you choose to open your business without first acquiring a business license, you may face stiff penalties if it is discovered that you are operating without a license. Not obtaining a business license may also increase your supply cost. Cleaning companies typically purchase their supplies from wholesalers, who generally only sell their products to licensed businesses.

Essential Licenses and Permits for a Cleaning Business

To legally operate a cleaning business, you will need to obtain the proper licenses and permits, which may vary based on location and business structure. Below are the essential licenses and permits required:

  1. Business License – Most cities and counties require a general business license to operate any type of business legally.
  2. DBA (Doing Business As) Registration – If your business operates under a different name than your personal name, you must register a DBA with the county or state.
  3. Vendor's License – If you plan to sell cleaning products or charge sales tax, you may need a vendor’s license to collect and remit taxes.
  4. Occupational License – Some states and cities require specific occupational licenses for cleaning businesses, especially for handling hazardous materials.
  5. Environmental and Waste Disposal Permits – If your business involves the disposal of hazardous cleaning chemicals, you may need an environmental permit from your state’s environmental agency.
  6. Employer Identification Number (EIN) – If you plan to hire employees, you must obtain an EIN from the IRS for tax purposes.
  7. Zoning and Home Occupation Permits – If operating from a home office, check with local zoning authorities to ensure compliance with business operation laws.

Failing to obtain the required licenses and permits can result in fines, business closure, and legal action.

Starting a Cleaning Business

The first step that you need to take when starting a commercial cleaning business is deciding exactly what size buildings you wish to clean. Although there is often more money in cleaning large commercial buildings, taking on such large jobs when you're first starting out can be difficult. Determining the size of the buildings you wish to clean will help you identify to which businesses you should advertise your services. Virtually every type of commercial building needs cleaning service.

If you decide to stick with small buildings, there are several types of business where you may be able to find work:

  • Banks.
  • Day cares.
  • Gyms.
  • Convenience stores.

In the early days of your business, you should look for cleaning jobs that you can handle yourself. Once you gain experience and your business starts to grow, you can hire employees so that you can start accepting larger cleaning projects.

After deciding whether you will clean large or small commercial buildings, you need to select a name for your business. While your business name should be memorable, you should avoid choosing a gimmicky name, as this may turn off many of your clients. Choose a name that is professional and tells your customers exactly what they can expect if you are hired.

Insurance Requirements and Bonds for Cleaning Businesses

In addition to licensing, proper insurance and bonding protect your business, clients, and employees from financial and legal risks. Here are key types of coverage:

  1. General Liability Insurance – Covers property damage and bodily injury claims caused by your business operations.
  2. Workers’ Compensation Insurance – Required if you hire employees; it covers medical expenses and lost wages for work-related injuries.
  3. Janitorial Bonds (Surety Bonds) – Protects your clients from employee theft and is often required for commercial contracts.
  4. Commercial Auto Insurance – If your business owns vehicles used for transporting cleaning equipment, commercial auto insurance is required.
  5. Business Owner’s Policy (BOP) – Combines liability and property insurance to cover accidents, damages, and lawsuits.

Having the right insurance not only ensures compliance but also increases credibility with potential clients.

State-Specific Licensing and Regulations

Each state has its own licensing requirements for cleaning businesses. Below are some examples of state-specific rules:

  • California – Requires a business license and adherence to strict environmental regulations for chemical disposal.
  • Texas – A general business license is required, but no special cleaning license is mandated.
  • Florida – Cleaning businesses must register with the Florida Department of Revenue if they charge sales tax.
  • New York – Some cities require special permits for janitorial services handling hazardous waste.

To ensure compliance, check with your state’s Secretary of State office or local Small Business Administration (SBA).

Training and Certifications for Cleaning Professionals

While not always required, obtaining certifications can improve credibility and provide a competitive edge. Common certifications include:

  1. OSHA Compliance Training – Ensures safety practices for handling cleaning chemicals and preventing workplace injuries.
  2. IICRC Certification (Institute of Inspection, Cleaning, and Restoration Certification) – Recommended for businesses offering carpet and upholstery cleaning.
  3. Green Cleaning Certification – For businesses that use eco-friendly products, the Green Seal Certification can increase marketability.
  4. Bloodborne Pathogens Certification – Necessary for cleaners working in medical or biohazard environments.

Certifications demonstrate professionalism and may be required for certain commercial cleaning contracts.

Frequently Asked Questions

  1. Do I need a business license to start a cleaning business?
    Yes, a general business license is typically required in most locations.
  2. What is a janitorial bond, and do I need one?
    A janitorial bond protects clients against theft by your employees. It is not legally required but may be necessary to secure commercial contracts.
  3. Are there any special permits needed for using cleaning chemicals?
    Some states require permits for using and disposing of hazardous cleaning chemicals. Check with your local environmental agency.
  4. How much does it cost to get licensed for a cleaning business?
    Licensing costs vary by location but typically range from $50 to $500, depending on state requirements.
  5. Do I need insurance to start a cleaning business?
    While not always legally required, general liability insurance and workers’ compensation are highly recommended for protection against claims and lawsuits.

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