Do You Need a License for a Cleaning Business?

Do you need a license for a cleaning business? It’s one of the first questions new cleaners ask, and the honest answer is that it depends on where you live. Some cities and counties require a business license to clean homes, and some don’t. Your state may require you to register your business either way.

What We Needed

When we started, no license was required where we were. Our only filing was incorporating with the state. Requirements change over time, though, and they’re different from place to place, so don’t assume yours match ours. Check with your city, your county, and your state before you take your first paid job.

Where to Check if You Need a License for a Cleaning Business

• Your city or town: whether you need a local business license.
• Your county: some counties have their own registration or license.
• Your state: business registration, and whether you need to collect tax on cleaning services.

A quick phone call to each office can save you a fine or a headache later.

Insurance: The Part Not to Skip

Even where no license is required, you’re working in other people’s homes, around their belongings, their families, and their pets. Accidents happen to careful people.

We bought general liability insurance and a surety bond from the start. Over our eight years in business, we had to use them a couple of times. Each time, we were glad we had them.

In general, liability insurance helps cover damage or injuries that happen because of your work, like a broken heirloom or a fall on a freshly mopped floor.

A bond is optional, but customers value it, and we carried one from day one. Depending on how it’s written, a bond can protect your customer if something is stolen and, in some cases, if something is damaged. Ask your local insurance agent exactly what yours would cover.

Being able to say “yes, we’re insured and bonded” also helps customers feel safe letting you into their homes.

The Shortcuts Some Cleaners Take

Some solo cleaners skip registration, insurance, or bonding to save money, or ask customers to sign a waiver instead. We understand the temptation when money is tight. But think through what’s at risk.

If something is damaged or someone gets hurt, you could be paying out of your own pocket, and that can reach your savings and your family. Your customer may be left with no way to be made whole. One bad day can end a business that’s just getting started. A waiver may not protect you the way you think it will.

Take the high road. It costs less than you might expect, and it protects you, your customers, and your family.

One More Decision: Your Business Structure

You’ll also decide how to set up your business, such as a sole proprietorship or an LLC. We incorporated from the start. Today many new owners form an LLC. Each choice has trade-offs for taxes and protection. Talk with an accountant or attorney about which fits you.

For where this fits in the bigger picture, see the step on making your house cleaning business legal in our startup guide. Our Starter course includes a section on protecting yourself and your business as you get going.

This post is general information, not legal or insurance advice. Requirements vary by city, county, and state. Check with your local and state authorities, and talk with an attorney and an insurance professional before you start.