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Ready to sweep away the competition with your new cleaning business? Hold onto your mop! There’s some paperwork to tackle first.
Licenses and permits aren’t just legal hoops to jump through. They’re important tools that protect your business and your customers. These documents show you’re serious about your work and following the rules.
In this article, we’ll answer the question, “What licenses are needed to start a cleaning business?” We’ll walk you through the different types of licenses you might need, how to get them, and why they’re important for success. By the end, you’ll be ready to clean up—legally.
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Why Do You Need a License To Start a Cleaning Business?
Starting a cleaning business isn’t just about grabbing a mop and some supplies. There’s an important step you can’t skip: getting the right licenses.
First and foremost, licenses are often required by law. Just as you need a driver’s license to drive a car, you typically need business licenses to run a cleaning company. These laws ensure businesses operate safely and fairly. Without the proper licenses, you could face fines or even be forced to shut down your business.
Licenses also show that your business is reputable. When customers see you’re licensed, they know you’re serious about the work. It’s like a stamp of approval that says, “This business follows the rules and can be trusted.”
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Types of Licenses for Cleaning Services
Which licenses you need depends on several factors. These include where your business is located, how it’s set up, how big it is, and what kinds of cleaning services you offer (such as residential cleaning or commercial cleaning).
Let’s take a look at some common types of licenses you might need to get your cleaning business off the ground:
Business License
A business license is like your official permission slip to operate in your city or county. Every business needs one, regardless of what services they provide. It shows that your cleaning business is recognized by local and state governments. You’ll likely need to renew this license every year and pay a fee.
Vendor License
If you plan to sell cleaning products along with your services, you might need a vendor license. It usually requires you to collect and send sales tax to the government, helping the government track taxable sales. Not all cleaning businesses need this license, but it’s good to consider if you think you might expand your offerings in the future.
Doing Business As (DBA) Registration
Sole proprietorships are often filed under the owner’s name. If you want to use a business name that’s different from your legal name, you’ll need to register it.
For example, if your name is Alice Smith, but you want to call your business “Spotless Cleaners,” you’ll need to register “Spotless Cleaners” as your DBA. This helps customers know who they’re really doing business with and prevents confusion.
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Specific Permits for Opening a Cleaning Business
Beyond general licenses, cleaning businesses often need specific permits. These ensure you’re following safety, environmental, and operational rules.
Here are some common permits you might need:
Home-Based Business Permit
If you’re running your cleaning business from home, this permit shows it’s okay to operate in a residential area.
Environmental Permits
These permits ensure you’re handling cleaning chemicals and wastewater safely. They protect the environment from harmful substances and may cover proper storage of cleaning products.
Health and Safety Permits
These show you understand how to handle cleaning chemicals and biohazardous waste safely and that you know how to keep your workers safe. You might need to prove you’ve had training in chemical use, accident prevention, and general workplace safety standards.
Vehicle Permit
If you use a van or truck for your business, you might need a special vehicle permit. This shows your vehicle meets safety standards and is properly insured for business use.
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How To Get a Cleaning License for Your Business in 4 Steps
Getting your cleaning business license might seem tricky if you’ve never done it before, but it’s really just a matter of following a few key steps.
Here’s what you need to do:
1. Confirm Which Licenses You Need
First, figure out exactly which licenses your business needs. This depends on where you live and the types of cleaning services you offer. You might need to check with your local government office or a business advisor to get this information.
2. Submit the Application
Once you know which licenses you need, it’s time to fill out the paperwork. Make sure you answer all the questions carefully and include any requested documents. Double-check everything before you send it in.
3. Pay the Application Fee
Most licenses come with a fee. Have your payment ready when you submit your application. You might be able to pay online, by check, or in person, depending on your local rules.
4. Renew on Time
Most licenses need regular renewals. Mark the renewal date on your calendar so you don’t forget. Keeping your licenses up to date is important to avoid legal issues and potential penalties.
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How Long Does It Take to Get a Cleaning Business License?
Getting your cleaning business license can take anywhere from a few weeks to a few months. The timeline varies depending on your location and how complex your application is. Local government processes, workload, and the completeness of your application all play a role.
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Cleaning Business License Cost
Most cleaning business licenses cost between $50 and a few hundred dollars to start, depending on your location and business type.
But keep in mind that this isn’t the only expense you’ll encounter. You’ll also need to budget for business registration fees, required permits, and essential equipment and supplies.
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Cleaning Business Insurance To Consider
Insurance is crucial for protecting your cleaning business. It helps cover costs if something goes wrong. And while it’s not technically a license, it’s usually a must-have.
Here are some important types of insurance to think about:
General Liability Insurance
This is like a safety net for your business. It helps pay for damage to a client’s property or if someone gets hurt because of your work. It also covers any lawsuits these accidents might result in. For example, if you accidentally break an expensive vase while cleaning, insurance would cover the cost of replacing it.
Workers’ Compensation Insurance
If you have employees, you’ll need this type of insurance. It helps pay for medical care and lost wages if one of your workers gets hurt on the job. In many states, it’s required by law.
Commercial Auto Insurance
You need this type of insurance if you use a car or van for your business. It covers accidents that might happen while you’re driving to and from cleaning jobs, as well as vehicle damage, theft, and other liabilities.
Professional Liability Insurance
Also called errors and omissions insurance, this protects you if a client claims you made a mistake or didn’t do your job properly. For example, if you’re accused of using the wrong cleaning product on an expensive carpet, this insurance can help.
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Cleaning Business Bonds To Consider
Bonds are different from insurance but also important. They’re like a promise that you’ll do your job right and follow the rules.
Here are some types of bonds to consider:
- License and Permit Bonds. Some jurisdictions require these before giving you a business license. They show that you’ll follow local laws and regulations.
- Surety or Janitorial Bonds. These aren’t required by law, but clients often request them. They protect your clients from theft by you or your employees, or if the client believes you’ve done subpar work.
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4 Tips for Successfully Applying for a Cleaning Business License
- Start Early. Begin the application process well before you plan to open your business to allow for unexpected delays.
- Gather All Required Documentation. Make a list of everything you need and collect it before you start so you’re not scrambling at the last minute.
- Stick to a Checklist. Create a to-do list of all the steps and check them off as you go to stay organized and on track.
- Consider Seeking Legal Advice. A lawyer who knows about small businesses can help you understand tricky rules and avoid making mistakes.
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