What Licenses Are Needed To Start A Cleaning Business? – A Starter’s Guide

Are you looking to start a cleaning business in your local area? Although starting this business will not be a big problem, one of the first things to worry about is licensing your cleaning business. This is because your licensing depends a lot on your location. In this article, you will learn what licenses are needed to start a cleaning business. 

Starting a cleaning business is one of the most popular small-town business ideas in the United States. However, although it might be a profitable option for starting out, it also needs proper licensing and insurance. Having the right licenses and insurance will protect your business and give you peace of mind. 

Licensing Your Cleaning Business: An Overview 

According to the Forbes Advisor, “A business license is any kind of license or permit that a state or other government entity requires businesses to have in order to do business. Federal, state, and local agencies issue various types of business licenses and permits for a variety of business activities.“

Hence, getting the appropriate licenses, permits, and regulations is crucial to starting a cleaning business. However, you might find it complex where to start, provided there are ample federal, state, and local licensing laws. One of the best ways to find out is to consult a business lawyer. 

However, the type of business license you need depends a lot on the location of your business as well as its type. Depending on the state where you operate, you must follow certain regulations no matter what cleaning job type you take.  

Generally, you must get a general business license first to operate legally. Furthermore, depending on your business, you might also need a special license or a bond for legal compliance in your area. 

In addition, even if you want to get a business loan for equipment, you will need to show your cleaning business licenses. 

Factors To Consider While Licensing A Cleaning Business

The following are some of the major factors you need to consider if you want to license your cleaning business: 

• Location: It includes state, county, district, and city, each with different laws and licensing regulations. 

• Business Structure: There are different licenses for different business structures like sole proprietorship, LLC, partnership, or corporation. 

• Size: The size of your business, including the number of employees, amount of revenue, and more, also determines the type of licensing you need. 

• Type of Business: Here, you need to consider the type of cleaning service that you offer through your business. For example, specific licenses and permits exist for different cleaning services, like industrial cleaning, window cleaning, janitorial services, etc. 

What Licenses Are Needed To Start A Cleaning Business? 

Generally, most cleaning businesses apply for at least one license, and that is the business license. Furthermore, based on your business activities, location, and size, you can also apply for a vendor’s license. In addition, as you grow, you can get a DBA registration or other permits. 

However, if you fail to get the necessary licenses, you might incur penalties and fines. Hence, to ensure you understand all the legal compliance and license obligations, you must consult the local authorities and a business lawyer for your cleaning business. 

Here are some of the major licenses that you need for your cleaning business: 

1. General Business License 

According to Chase Bank, “While not all businesses need to register with the federal government, many need state licenses. States issue operating licenses to industries ranging from construction to pet care services. Check with your Secretary of State’s office or state Department of Commerce to confirm if you need a license. Your state likely provides online resources that list the requirements for state licenses.“

It is the general license that most states require all businesses to obtain. Hence, by getting this license, you can run your business legally in the state, city, or country. Generally, these licenses are connected to taxes. Also, the Secretary of the State typically issues this license. 

2. Vendor License 

A vendor’s license applies to businesses that sell specific goods and services. However, only some states require businesses to have this license, and not all states. With this license’s help, a business can collect sales tax from its clients and customers.  

For example, if you own a carpet cleaning company, and sell a particular spray for cleaning carpets, you must have the vendor’s license. Generally, the Department of Revenue or Taxation deals with vendor’s licenses in the state where you are from. 

3. Contractor License

Indeed explains – “A contractor license allows you to apply for general contract jobs that pay over $500. You also need a contractor license if you intend to start your own contracting business, hire subcontractors, or advertise your services. This license also allows you to take a wide range of more extensive jobs that handypersons may not be able to bid for, allowing you to earn more money.“

However, you need a contractor’s license, if you have a cleaning business that works on buildings or construction sites. Furthermore, you will also need to comply with various regulations. Moreover, there is certain insurance coverage and training you must consider to get this license. 

4. DBA License 

The DBA license or the “Doing Business As” registration is important if you use another trade name to run your business. This generally applies to corporation businesses. Hence, once you register your business as a DBA, you are making the public aware that your business uses a different name. 

In other cases, some business owners do not want to use their own business names to maintain privacy. Moreover, more businesses still register for DBA licenses for branding purposes. This helps them to differentiate their products and services in the marketplace. 

Note that a DBA registration is not the same as registering for a trademark. For example, if you want to register for a trademark or the name of your business, you need to do it separately. 

5. Specific Licenses

There are certain localities where business owners must register or get licenses for specific activities. This is also true for cleaning businesses where different types of cleaning activities are performed. 

For example, in California, janitorial employers must register every year with the Office of the Labor Commissioner. According to this registration, employers must deliver sexual harassment prevention training every two years. 

6. Other Essential Permits

Depending on the location of your business as well as your business activities, there are certain permits and licenses you need to apply for. This will help you to run your cleaning business in the right manner.

The following are some of the permits that you need to consider: 

Environmental Permits

Let’s say you deal with hazardous chemicals in your cleaning business. Hence, you will need to register for environmental permits. Basically, these permits are to regulate water usage and waste disposal issues. 

Health And Safety Permits

These permits are applicable when cleaning business transport and disposing of waste. Furthermore, you will also need these permits to handle biohazardous waste like waste from medical facilities and crime scenes. 

Signage Permits

If you start your cleaning business from home and want to advertise your business, you will need a signage permit. This puts a signage on your house. 

How To Get A Cleaning Business License? – Steps To Follow 

According to Nerdwallet, “While it’s difficult to estimate how long it’ll take to get a business license, there are a few things you can do to expedite the process. To start, if your state or city offers online applications, apply for your business license online. This will be faster than mailing an application or filling one out in person. Plus, an online application will be easier for the respective government agency to review.” 

Here are the steps you need to follow if you want to get a cleaning business license: 

1. Find Out What You Actually Need: Understand the needs and demands of your business and confirm which licenses, registrations, and permits your business actually needs. You can start by contacting the relevant government department. You can also call your nearest Small Business Development Center for more details. 

2. Submit Supporting Documents: Depending on the size and type of your business, the relevant form and documents may vary. Hence, make sure you are aware of what you need to submit. 

3. Application Fee Payment: You must pay an application fee for many licenses, registrations, and permits. However, the fee may vary depending on the permit, license, or registration that you are applying for. 

4. License Renewal: Generally,  licenses have expiration dates. Hence, after expiration, you must renew your licenses. However, some licenses last longer while some don’t. Hence, you need to be aware of these aspects. 

Wrapping Up

Hence, to operate a cleaning business, you must know what licenses are needed to start a cleaning business. However, the licenses you need might vary depending on the state/location/city that you stay in. Therefore, to have a good idea of what licenses you need to consider, you need to discuss it with a business lawyer. 

Do you have more suggestions on how to get licenses for cleaning businesses? Please share your suggestions in the comments section below. 

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