How to start a cleaning business

Do I need a license to start a cleaning business?

There is no federal license for cleaning. The SBA explains that licenses and permits depend on your business activity and location, that local governments set their own registration and licensing rules, and that most small businesses need a mix of state and local registrations. For a cleaning business that usually means:

• Registering the business: a DBA if you trade under a name other than your own, or an LLC; see LLC vs sole proprietorship.
• A general business license or registration from your city or county, where one exists.
• Checking whether your state taxes cleaning services; some states tax certain services, so read your state's list before assuming you collect nothing (sales tax guide).
• Checking zoning rules if you run the business from home, since the SBA notes that zoning ordinances can still apply to home-based businesses.

Commercial contracts can add requirements of their own, such as proof of insurance or a bond, written into the contract rather than the law. Read them before you bid.

What insurance and bonds does a cleaning business need?

You work inside other people's homes and offices, so liability cover comes first. The SBA's insurance guide describes general liability insurance as protection against financial loss from bodily injury, property damage, medical expenses and lawsuits, and professional liability insurance for businesses that provide services, covering errors and negligence. Once you have employees, the SBA lists workers' compensation, unemployment and disability insurance as required, and states can add more.

Bonds are different from insurance. The SBA's surety bond page separates two kinds:

• Contract bonds guarantee that the terms of a specific contract are fulfilled; many public and private contracts require them, and bid, performance and payment bonds are the usual kinds. The SBA guarantees these for qualifying small businesses, for contracts up to $9 million (non-federal) or $14 million (federal), and charges a fee of 0.6% of the contract price on performance and payment bond guarantees.
• Commercial bonds guarantee that you follow applicable laws and regulations; some government agencies require them, and they protect the public against things like fraud.

If a client or contract asks for a bond, find out exactly what it wants covered, then ask your insurance agent or a surety which bond or policy provides it and what it costs.

How should I price cleaning jobs?

Prices depend on your local market, so build your price from your own numbers rather than a figure from a forum. Price per job for homes, after a walkthrough, and per visit or per month for recurring commercial work. The structure:

1. Estimate the hours for the job from a walkthrough, and time your first jobs to correct the estimate.
2. Cost the labor. If you hire, use the full hourly cost of a worker: wage, employer payroll taxes and workers' compensation. For a reference wage, the Bureau of Labor Statistics reported a median of $17.71 an hour for janitors and building cleaners in May 2025; local pay may be higher or lower. If you do the work yourself, still put your own time in at a rate you would accept.
3. Add supplies and equipment: chemicals, cloths, vacuum wear, and anything you replace per job.
4. Add travel: time and mileage between jobs, which is real cost even when unpaid.
5. Spread your overhead: insurance, licenses, phone, software and marketing, divided over your expected jobs a month.
6. Add your margin, then compare the result with what local customers pay. If the market price is lower than your cost, change the service, not just the price.

The SBA's break-even calculator shows how many jobs a month you need to cover fixed costs. For the general method, see how to price a product or service.

Should my cleaners be employees or independent contractors?

This decision has tax consequences, so make it carefully. The IRS says that for employees you generally withhold income tax, Social Security and Medicare from wages, pay the employer's matching share and pay unemployment tax; for independent contractors you generally do not. Which one a worker is depends on the whole relationship, judged in three areas:

• Behavioral control: do you control, or have the right to control, what the worker does and how?
• Financial control: do you control how they are paid, reimburse expenses, or supply the tools and products?
• Type of relationship: is there a written contract, are there benefits, will it continue, and is the work a key part of your business?

Cleaning is the core of a cleaning business, and owners often set the schedule, checklist and products, which are factors the IRS weighs. No single factor decides it. If you are unsure, the IRS accepts Form SS-8 for a determination.

What safety rules apply to cleaning chemicals?

Once you have workers, OSHA's Hazard Communication Standard applies to the chemicals they use: all employers with hazardous chemicals in their workplaces must have labels and safety data sheets for exposed workers and train them to handle the chemicals properly. Ask your suppliers for the safety data sheet for each product, keep the sheets where workers can reach them, and keep every container labeled. OSHA publishes a small-entity compliance guide for employers that use hazardous chemicals.