Starting a cleaning business can be profitable and flexible, but before you grab a mop or buy supplies, there’s at least one critical area you can’t leave out: “legal compliance” in Cleaning Business License Requirements
Ensure that every step of the way, whether it is registering your business name to obtaining the right licenses, permits and even insurance coverage, you make the right decisions. Not getting these basics in place can result in stiff fines, denied contracts or even being shut down.
This comprehensive guide covers everything you need to legally establish and run a cleaning business - be it residential cleanings, commercial janitorial work, or app-based bookings. We’ll cover:
- Licenses and permits needed by business type
- Tax registrations, as well as financial registrations
- The Bottom Line in Bonding and Insurance
- State-by-state costs and compliance tips
- Step-by-step startup and legal checklists
At the end you’ll have a clear roadmap to launch with confidence – and grow your business on a strong legal footing.
Cleaning Business License Requirements
Basic Legal Requirements to Start a Cleaning Business
Here are key legal bases you need to cover before you launch your cleaning company:
General Business License
This license allows you to conduct business in your city or county legally. It’s usually the first permit you’ll have to obtain, and it comes from your local government. If you don’t have it, you might incur fines or risk closure.
Doing Business As (DBA) Registration
As a general rule of thumb, if your company is operating under a name apart from your legal name (such as “Sparkle Shine Cleaners” and not your name), you’re probably going to need to file a DBA in most states. This process legitimizes the name you have chosen, you can market using it, and you can open a business bank account under that name.
Business Name Registration
By registering your business name, you are legally establishing it, protecting it from use by another business in your state. It makes you credible, and it gives you something to build a professional online presence upon.
Local Business License
Many cities and counties, furthermore, require separate city or county licensing to operate legally, even if you have a state-level license. This ensures that they remain compliant with local zoning, tax and operational matters.
Occupational License
In some states or counties, cleaning professionals are required to obtain occupational licenses – especially if you’re providing specialized services like mold remediation, hospital cleaning or biohazard cleanup.
Zoning Laws Compliance
If you are running your business out of your home or renting a location, make sure that your business activity is allowed by local zoning ordinances. Operating a cleaning business in a restricted residential area could attract penalties or forced relocation.
State-Specific Cleaning Business Regulations
Certain states such as California, New York, and Florida frequently feature special rules which may cover:
- Environmental Certification for green services
- Virginia: Required worker protections and wage laws
- Psychological Safety and Organizational Culture
Consult your state’s Small Business Administration (SBA) or Secretary of State for current rules.
Special permits and industry-specific licenses
Depending on the services you offer, you may need additional permits or certifications to legally stay in business.
Contractor License (Post-Construction or Site Cleanup)
If your business picks up post-construction debris or operates on commercial/industrial job sites, you might need a contractor license. This certification forges your capacity to perform heavy-duty tasks and might include background checks, evidence of experience, and commerce exams.
Environmental Permits (Hazardous Material Handling)
If your services include chemical waste, biohazards or mold removal, it will also require environmental permits through the EPA or your state’s environmental agency. You will also need Material Safety Data Sheets (MSDS), appropriate protocols for storage and disposal of chemicals.
Health and Safety Permits
If you work in hospitals, restaurants, or daycares, you’ll need health and safety permits in the majority of cases. Expect inspectors to look for safe chemical storage, proper labeling, PPE, and hygiene practices that meet OSHA standards.
Janitorial Services License
Other states and cities offer specific janitorial licenses geared to residential and commercial cleaning companies. These often involve proof of liability insurance, employee background checks and visitation training.
Property Services Contractor License
Businesses that are in the “property services” category – for example, if you do maintenance, pressure washing, window cleaning or landscaping – may need a special contractor license to do business legally.
Financial Setup & Insurance Essentials
Tax and financial registrations for cleaning businesses
Your cleaning business needs to complete critical tax and financial registrations to operate legally and to keep your finances professional:
Employer Identification Number (EIN)
The IRS issues an EIN, a unique federal tax ID for your business. It’s required if:
- You plan to hire employees
- You are set up as an LLC, corporation, or partnership
- You would like to update your commercial bank account
How to Apply: Visit irs.gov It’s free and takes just a few minutes to apply.
Sales Tax Permit
In many states, certain cleaning services – particularly commercial cleaning or product resales – are taxable. That is why a Sales Tax Permit authorizes you to collect and remit that tax legally.
- For example: Commercial cleaning services are taxable in Texas; residential cleaning services may not be.
- Apply via your state’s Department of Revenue or tax office.
Vendor License (Reseller Permit)
If you intend to resell cleaning supplies or products, you may need a vendor license (also known as a reseller’s permit). This allows you to:
- Buy items wholesale
- Make sales of products to clients or other businesses legally
- Not paying sales tax on your inventory purchases
The license is typically granted at the city, county or state level.
State Tax Registration
In addition to federal registration (EIN), you probably will need to register with your state tax authority to address:
- State income tax
- Sales and use taxes
- Employment taxes
- Workers’ compensation or unemployment insurance (if you are hiring)
Tip: Check your state’s Department of Revenue or Secretary of State website for proper forms and guidelines in your area.
Insurance and bonding requirements for cleaning businesses.
Having the right insurance and bonding is more than just complying with laws – it’s a wise business decision that fosters trust and protects your assets.
General Liability Insurance
This is the coverage every cleaning business must have. It protects against:
- Property damage (e.g., you break a client’s item)
- Moderate injury (e.g., as a result of a slip and fall accident)
- Legal claims and the associated expenses
Suggested coverage: $1M–$2M per incident
Regardless of whether you have one or many clients as a solo cleaner, this insurance will help others recognize you as credible.
Workers’ Compensation Insurance
In most states, this insurance is mandatory if you hire employees. It covers:
- Health care costs for work-related injuries
- Lost wages
- Rehabilitation services
Not carrying workers’ comp can lead to huge fines or a closure of your biz
Janitorial Surety Bond
A janitorial bond protects clients if your employee:
- Steals from a client
- Damages property
- Does not perform the agreed-upon service.
Cost: $100–$600 per year
Coverage: Average $5,000–$25,000
This is often a requirement of commercial and government clients.
Bonding Your Cleaning Company
Being “bonded” means your business has purchased a surety bond that protects clients against fraud or negligence.
Benefits:
- Establishes trust with top-tier clients
- Sometimes a contractual obligation on commercial jobs
- Signals of Professionalism and Financial Responsibility
Commercial Auto Insurance
If you or your employees drive for work – even in personal vehicles – a commercial auto policy is typically needed. It covers:
- Damage to the vehicle
- Damage or injury to third parties while driving for business purposes
Business Owner’s Policy (BOP)
A BOP is a combined insurance package that includes:
- General liability
- Property insurance (on your office or storage facility)
- Business interruption coverage (for loss of income because of events such as fire or flooding)
A BOP is an affordable method of obtaining comprehensive coverage via a single premium.
Underinsurance: A Common Mistake
Many cleaning companies will under-insure, which means the cleaning company will have:
- Denied claims
- Financial losses
- Lost potential with big clients
Audit your coverage on an annual basis – particularly when you expand, hire team members or add services.
Startup Checklist & Business Launch Roadmap
Picking the right supplies is only one part of starting a cleaning business. Legal, financial and operational readiness all need to be in place for a solid foundation. Follow this checklist for starting your business, step by step, and remain compliant the entire way!
Cleaning Business Startup & Compliance Checklist
Business Planning
- Identify your niche: Are you going to be a residential cleaner, commercial cleaner, post-construction cleaner, eco-friendly cleaner, or a move-in/move-out cleaner?
- Define your service packages: Decide what you are going to offer (i.e. deep cleans, recurring cleans, specialty add ons).
- Determine pricing: Study your competition and cost factors in your area.
- Get an account: Add your startup expenses: Licensing, insurance, supplies, marketing, website setup.
- Research the competition: Understand who’s already serving your area and how you can differentiate.
Legal & License Setup
- Decide on a business structure (LLC, sole proprietorship, S-corp, etc.)
- Walk into the registrar’s/DBA office and pay for your business name
- Get a General Business License through your local clerk’s office
- Obtain an EIN from the IRS
- Obtain state tax IDs and also sales tax obligation licenses (if relevant)
- Hop in line with zoning laws and local regulations
- Daily permits (occupational, janitorial, environmental)
Insurance & Bonding
- General liability insurance purchase
- Obtain workers’ compensation insurance (if hiring employees)
- Get Janitorial surety bond for government/commercial contract
- Alternatively BOP, commercial auto and more
Tools, branding, and setup
- Purchase cleaning devices and products (conventional and eco-friendly)
- Create your website & Google Business Profile & local listings (Yelp, Thumbtack)
- Develop branding - logo, uniforms, business cards, vehicle decals
- Separate finances by opening a business bank account
- Set up scheduling, invoicing and customer relationship management (CRM) software
Legal Documents & Contracts
- Create service agreements for your clients – define what they can expect with services offered and include cancellation terms and payment policies
- Draft contracts for employees or contractors (if you’re hiring)
- Waivers or NDAs for sensitive cleaning locations
- Create a process for tracking client records, tax returns, and payments
Ongoing Compliance
- Each year or as required, renew all business licenses
- Maintaining current insurance policies
- Pay taxes due on time (federal, state, sales, payroll)
- Stay OSHA compliant on commercial jobs
- Plan date for staff training & internal review of safety
Pro Tip: Print this checklist or save it digitally so you can check items off, returning to key steps you might miss as you scale and grow in compliance.
Business models, license types, and startup costs
License Requirements by Cleaning Business Type
There are different compliance requirements with each cleaning business model. Here’s a breakdown of which licenses and requirements apply to each:
Residential Cleaning
- Business license (city or county)
- DBA (Doing Business As) registration (if you’re working under a brand name)
- Public liability insurance (recommended)
- A home occupation permit (if starting from home)
- Include in-home services that may require local permits
Commercial Cleaning
- General business license + commercial endorsement (if applicable)
- Workers compensation (if you hire employees)
- Increased general liability insurance coverage
- OSHA compliant for industrial or hazardous environments
- Janitorial bonds for large/commercial contracts
Carpet Cleaning
- Business license
- Compliance with environmental requirements (chemical disposal)
- Optional equipment use certifications (adds credibility)
- License for water extraction systems in certain areas
Eco-Friendly Cleaning
- General business license
- Use of certified green products (documentation may be required)
- Environmental health permit (certain states)
- Review all marketing claims to ensure compliance with FTC guidelines for “eco-friendly” services
Move-In / Move-Out Cleaning
- Residential or short-term commercial work (general license)
- Extra liability insurance (many landlords/property managers ask for this)
- Permit for waste hauling or disposal (from jurisdictions that control debris transport)
Online / App-Based Cleaning Businesses
Compliance applies even if your business is digital:
- General business license in your home jurisdiction
- Service Facilitator’s License (Some states)
- Cleaners / sub-contractors insurance (if applicable)
- Compliance with terms of service, privacy policy, and payment processing
License, Permit & Startup Cost Breakdown
Getting into a cleaning business is cheap compared to most industries – but you’ll need to plan your spending on necessary licenses, supplies, insurance and marketing.
Business License Fees (Estimated Range)
Average License Fees by State
Estimated Startup Costs
Hidden Costs to Consider
- Liability and auto premiums
- Renewals of business registrations
- Janitorial bond (particularly for commercial buildings)
- Certificates or other training (e.g., OSHA, chemical handlings)
- SEO, improvement of the site and local ads
- Vehicle branding or decals
Conclusion: Launch with confidence and grow with compliance.
Starting a business cleaning takes more than tools and elbow grease – it needs to lay the groundwork for a solid legal foundation from the start. By understanding and securing the right licenses, permits, tax registrations and insurance coverage, you can ensure compliance and demonstrate to clients that you’re serious, trustworthy and ready to grow.
Whether you’re shipping alone, employing a crew or transacting through a digital platform, this guide has taken you step by step through every legal and financial hurdle you’ll need to clear for a smooth and stress-free launch.
