If you’re wondering how to start a cleaning business Limited Liability Company (LLC) or Corporation, cleaning technicians, janitorial services, and other housekeeping-related businesses will benefit from our article and helpful guide. Read on for steps to form your cleaning company online quickly.
MyCompanyWorks has helped cleaning companies form LLCs and Corporations since 2001. Read our startup guide and register your cleaning business with our exclusive Startup Wizard, included with all business startup packages. Find licensing requirements, business insurance, recruiting help, and more all in one place.
If you’re reading this article, you’re probably seriously considering starting a cleaning-related company. Any kind of cleaning service is an excellent starter LLC or Corporation. Once you have decided to make the commitment, there are several items you’ll need to start, manage and grow your company. Starting a business for cleaning requires a rather low initial investment and can become profitable quickly with the right marketing plan (more on that below). It can cost up to about $1,000 for equipment and supplies to get started. City, county, and state laws and regulations vary, so you will need to contact your local business authority to get specific requirements. We’ll go over the general details and share helpful links throughout this guide.
You may find that you need specialized supplies and equipment, but here is a good list of common items to stock your cleaning service.
If you have enough cash, you may not need a business plan for financing, but you may still need one to rent space or apply for a business bank account and financing when it’s time to expand. Not only is a business plan required to apply for financing, it’s actually a great way to track your progress and update as you grow your business. This is where a business plan template can come in handy, as they’re designed to be customizable and flexible enough to fit the needs of your company. Check out our Business Planning Resources for help and more information. The templates below have plenty of information that can help you understand how to grow your business, including sections for financials, market research, industry trends, and more.
To start a cleaning service, be sure to include an executive summary, marketing strategy, and financial statements in your business plan. In the executive summary, include your mission statement as well as a description of your company and the benefits you offer. The marketing strategy is where you’ll detail how you will promote your services to potential clients. A financial section should include information such as how much money will go towards salaries. A business plan can be a vital tool for tracking goals, refining methods, and collecting resources the business will use to accomplish its objectives.
What’s included in a cleaning service business plan?
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The process of applying for a Federal Tax ID, also known as an Employer Identification Number (EIN), is relatively straightforward and can be completed in just a few minutes if you have a Social Security Number. International business owners must satisfy additional requirements if they don’t have a social security number.
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify a business entity. It is used for tax purposes. The EIN is used in conjunction with the company’s name and address to identify the company.
If you have a social security number, you can apply online for an EIN with the Internal Revenue Service (IRS). We can request your EIN for you with any cleaning LLC or Corporation startup package.
With an EIN, you can open a business bank account, hire employees and pay taxes. If you use a “Doing Business As”, or DBA, you’re only required to have an EIN if you want to hire workers. But if you don’t have an EIN, you’ll have to use your personal Social Security number on all business tax and legal documents, which can cause problems in the future. We recommend that all businesses that use DBAs should still apply for an EIN to separate business and personal matters.
You can start with your personal bank to find out if they offer business banking solutions. If they don’t, you can contact any local or online business bank to open an account. Bank requirements vary, so you may want to interview a few to make the best decision for your cleaning service. Our banking partners can also help you find the best cleaning service business banking solutions.
A commercial real estate broker can help you find an office or warehouse based on budget, location, and lease terms. Any of the providers in our Vendor Network can help you find a suitable space for your cleaning operation.
Most businesses do not require federal licensing, but you will need to be licensed in the state where you run your company. Find out more about where to start your cleaning service here. You can either check with your county and state to find out what’s required for licensing, or you can order a business license compliance package to save time and money.
Some of the permits, disclosures, and licenses might include fire code certificates, hazardous materials disclosures to cover cleaning chemicals, and environmental permits to ensure proper waste disposal. If your professional cleaning service sells products, you’ll also have to apply for a sales tax or reseller permit with your state. Companies that only charge for services typically do not need a sales tax permit, but some states tax both products and services. You can confirm sales tax details and requirements with your state business authority.
Cleaning industry business insurance varies by region and specific type of cleaning services you perform, but you can expect to pay anywhere from about $300 – $1,000 for a business insurance policy. You may need to purchase a surety bond to cover loss and damages related to your cleaning jobs. Other common business insurance policies include General Liability, Workers’ Compensation, and commercial vehicle insurance. Our recommended vendors Hiscox and netQuote offer free quotes and will help you get the exact policies needed for your cleaning service.
Your company needs a program or system to manage all your finances. Products like Quickbooks Online are very simple to set up and their support team is available 24/7 with certain plans. If you’re better at cleaning than accounting, you can also hire a professional bookkeeper or an accountant to manage your business finances for you. Many bookkeeping and accounting professionals offer a range of services, from payroll to filing your business tax returns. Visit our Vendor Network for a list of recommended and qualified financial experts in your area.
There’s a lot of paperwork that comes with running a business. Invoices, receipts, bills, tax, legal, and business documents all need to be organized and easily accessible. You can set up digital storage or just file everything in a secure filing cabinet. Choose the method that works best for you, but stick to it. It’s much easier to file and organize as you receive new documents than it is to sort through a messy pile of papers later on. Here are some categories to consider when you start your filing system:
Business is booming for janitorial services, housekeeping businesses, and commercial cleaning services. Whether you need part-time or full-time staff, you can post job ads online for free in many cases. Indeed.com, LinkedIn, and local job post sites are very popular with job seekers. Here are some things to consider before you post a job ad.
Before you start hiring, you should have an employee manual to cover orientation, employee reviews, and policies and procedures for things like employee time off, how to use cleaning equipment, and general responsibilities and safe operation. You can download free employee manual templates online and edit to fit your cleaning service.
Make a list of all the tasks your employees will perform. Will they need to clean windows, climb ladders, or work in closed or confined spaces? When you’re writing the job description for your employment ad, you’ll want to list as many details as possible to clearly define employee roles and help job seekers decide if a cleaning job is right for them.
Even with a detailed job description, you’re likely to receive applications from job seekers who don’t have the skills required to do the job. You may receive hundreds of applications for just one job post, so be prepared to review resumes and only schedule qualified candidates for interviews. Indeed.com has a free recruitment guide download to help you recruit the right cleaning staff.
NOTE: You can expect to interview 6-10 candidates to hire one employee.
Marketing is an important step in your startup journey. Using the best marketing strategies and tools to promote your services in your area can help you to establish a customer base quickly. You may not need a website to run your business, but many potential customers look for businesses on the web before calling around for housekeeping or janitorial services. If you don’t have a website, you can order one with an email and web domain as an add-on to any of our cleaning startup packages. Email marketing still works, so make sure to start a regular newsletter or email campaign to keep customers informed and give them something to forward to potential new customers. Social media outlets such as Instagram, Facebook, and Twitter are also great ways to gain a following and increase your brand awareness. You can post content about previous cleaning jobs or what you do on your website. Just be sure not to spam users so they’re not turned off by loads of insincere posts.
Apps like AllBetter and Tidy can help licensed cleaning technicians find qualified customers quickly. You can also post ads on your local Nextdoor page. Claim your free Nextdoor business profile here. A Google search for “cleaning business marketing ideas” can help you find other apps and tools to grow your business.
Ready to start your business? Our FREE Startup Wizard is included with every business startup package. Work through the step-by-step process to start and manage your LLC or Corporation all in one place.
Starting a cleaning business can be an exciting and profitable experience. You’ll have to invest in cleaning products, equipment, licensing, insurance, and recruiting before you start to make money. But if you stick to a solid business plan, you can regain those dollars and start turning a profit rather quickly. Experts advise you to study your local market, manage time, buy quality products, and properly train your employees for success. There’s a lot that goes into forming a cleaning company, but it’s worth setting up systems and processes before you start cleaning, so you don’t get bogged down with tax and legal issues in the future. If you have read our guide and decided a cleaning business is right for you, it’s time to get started!
Cleaning service companies are fairly simple to start and manage, but if you’d rather let someone else handle the details, MyCompanyWorks can start your cleaning LLC or Corporation online. All business startup packages include our exclusive Startup Wizard and loads of forms and tools to manage your company in one place. Our blog is also full of articles, resources, and links to help you run a successful company.
Still have questions? Our Frequently Asked Questions page answers the most common business startup questions. If you don’t find what you’re looking for, our friendly support team is standing by. Contact us by phone or chat for more information to start the cleaning business startup process today.
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This entry was posted on Wednesday, April 13th, 2022 at 8:17 am and is filed under Starting A Business, New Business Ideas. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.