Starting a successful cleaning business comes down to five steps: choose your niche, file the paperwork to make it legal, invest in supplies, set your pricing, and protect yourself with cleaning business insurance.
Whether you’re turning a side gig into a real business or starting from scratch, the path is the same: a handful of legal, financial, and practical steps done in the right order. This guide walks you through each one, including what to do, what it costs, and what to watch out for, so you can go from “thinking about it” to booking your first client without skipping a step that costs you later.
Is now a good time to start a cleaning business?
Short answer: Yes, it’s one of the most accessible businesses to launch.
- Low startup cost: Break in with basic supplies and minimal upfront investment
- Flexible schedule: Set your own hours and choose your clients
- Growing demand: The cleaning services market is projected to grow ~6.6% a year through 2030
- Inexpensive to market: Word-of-mouth and social media can fill your calendar without a big budget
Step One to Starting a Cleaning Business: Find Your Niche
Pick one or two types of cleaning services to start out, hone your craft at those, and grow your client list. Add new offerings to your menu of services when you’re ready to scale up.
Consider these common types of services, then pick one or two in which to specialize:
- House cleaning/housekeeping: Housekeepers offer regular house cleaning or deep cleaning to busy families or individuals who want a tidy home. They dust, vacuum, and organize to create a welcoming space.
- Commercial cleaning: Commercial cleaners work with businesses to keep offices and commercial spaces spotless. Their tasks include restroom upkeep and floor care, helping create tidy environments for employees and customers.
- Janitorial services: Start a janitorial business to land contracts cleaning schools, hospitals, and other public buildings. Janitors keep common areas clean and orderly.
- Maid services: Maids offer comprehensive cleaning solutions, including regular and deep cleaning, organization assistance, and extras like laundry and meal prep. Make your maid service a one-stop shop for home maintenance.
- Green cleaning: Stand out by using eco-friendly products and sustainable practices. Green cleaning services appeal to clients who want clean spaces without harsh chemicals, and demand for green options is expected to grow more than 11% in the next decade.
- Vacation rental cleaning: Start a fast-turnover cleaning service that includes deep cleaning, restocking essentials, and ensuring a space is guest-ready, helping hosts maintain high ratings and repeat bookings.
- Specialized cleaning services: Some cleaners go even more niche than commercial and residential cleaning by focusing on pressure washing, carpet cleaning, or window washing.
House cleaning is one of the easiest and most cost-effective ways to find your footing in the cleaning industry. The necessary tools are minimal, and you can start by cleaning for people you know first, then build your client list through their referrals. To keep it simple, we’ll focus on how to start a house cleaning business.
Pro Tip: Get the details on cleaning business startup costs so you can estimate how much you might spend to get your cleaning business off the ground.
Step Two: Get the Right Paperwork to Make Your Cleaning Business Legal
Even if you’re only cleaning a handful of homes to start, it’s crucial to build your house cleaning business on a solid foundation. Decide which business structure makes sense for you (sole proprietorship, LLC, or corporation), apply for an EIN, and get licensed.
The first mistake many new cleaners make is thinking that since they’re side-gigging or working solo, they don’t need to file anything with the state to start work. Operating without a business license can result in hefty fines, and, depending on where you’re located, you may need to collect and remit sales tax on the services you offer.
Many beginning cleaners choose to hire a Certified Public Accountant (CPA) to help them navigate the paperwork they need to file to stay compliant. Rates for CPAs vary, but expect to pay between $300 and $1,500, depending on the size of your business, the amount of paperwork you need to file, and whether you want them to file any necessary monthly paperwork (like sales taxes or payroll).
Choose a Legal Structure for Your Cleaning Business
One big decision you’ll make is choosing the best legal structure for your cleaning business. Your legal structure determines how you’ll file taxes and personal liability tied to your business. Some structures require more paperwork and frequent reporting, but they allow tax savings in the long run if you plan to grow your business.
Here are the most common options to consider when structuring your cleaning business:
- Sole proprietorship: This is the easiest route and works well if you’re flying solo. Sole proprietors file all their business earnings and losses through their personal tax returns (where they also pay self-employment tax on their earnings). Keep in mind, you’re personally responsible for any business debts. That means if you get sued or have to file for bankruptcy, your personal assets are at risk to pay any debts you may owe.
- Limited liability company (LLC): This structure offers personal asset protection and flexibility in management and taxes. Plus, LLCs can elect to be taxed as S-Corps, which can offer certain tax advantages. The downside is that you must file paperwork and pay a fee to register as an LLC. LLCs file taxes separately, not through personal returns.
- Corporation (C-Corp or S-Corp): This structure is ideal for scaling up or attracting investors. It provides strong asset protection, but comes with more complex filing and stricter regulations. On the plus side, corporations may save on taxes by following a pass-through tax schedule. If your main income is your cleaning business, and you’re planning on growing it, registering as a corporation might be a smart choice for your long-term goals.
Pro Tip: Once your business is running smoothly, learn how to grow your cleaning business, so you can scale up with ease.
Register Your Business Name
If you’re going the LLC or corporation route, you’ll need to register your business name with the Secretary of State. Sole proprietors should consider registering their business name as a DBA (Doing Business As) for added legal protection.
Choose a catchy name for your cleaning business. Pick something that reflects your services, is easy for clients to remember, and isn’t already taken. The last thing you want is to fall in love with a business name only to find there’s already a business with the same name in your state, or that you can’t get the website domain or social media handles you want.
Before settling on a name, check with your state’s business registration office, and search the U.S. trademark office to ensure it’s available. Then, research social media to see if your handles are taken, and do a domain name search to make sure you can get the website URL you want.
Get an Employer Identification Number (EIN)
If you’re operating as an LLC or corporation, you’ll need an Employer Identification Number (EIN), which you can get for free online from the IRS. For ease, sole proprietors may use their Social Security number in place of an Employer Identification Number (EIN), but they can also obtain an EIN through the same online process.
An EIN is a nine-digit number important for taxes and keeping your personal and business finances separate, especially if you plan to hire employees. You’ll also be routinely asked to provide it when working as a 1099 contractor.
Licenses You Need to Start a Cleaning Business
To start a cleaning business, you’ll need a business license issued from the city where you’re based. Depending on where you do business, you may also need to apply for a sales tax permit or vendor’s license. Furthermore, you may need a special permit if you plan to work with hazardous or biomedical waste.
Here are some licenses needed to start a cleaning business:
- General business license: A city-issued business license is generally required to run any type of business, including cleaning services
- Sales tax permit / vendor’s license: You may need a sales tax permit or vendor’s license to collect and remit sales tax on your services if that’s a requirement where you do business. Additionally, your city or regional government might require a vendor’s license, contractor’s license, or even a specific cleaning service license, depending on the area. This could involve some paperwork, fees, and possibly showing proof of insurance and bonding. Contact your city officials to clarify what your area requires.
Other things to consider when starting a cleaning business include:
- Local requirements: Licensing can vary by state, county, or city, so take time to confirm what’s needed in your area
- Certifications: Professional cleaning certifications can up your appeal with residential and commercial clients alike
- OSHA guidelines: The Occupational Safety and Health Administration (OSHA) provides information on hazards, risks, and how to maintain a safe and compliant work environment
- Other resources: Visit Insurance Canopy’s blog for tips about insuring your cleaning business, risk management, how to market a cleaning business, and more
Step Three: Invest in Cleaning Equipment and Supplies
If you’re starting a house cleaning business, you’ll need the right tools to get the job done. Essential equipment includes a good vacuum for carpets, a microfiber mop with a wringer bucket for hard floors, and a trusty broom and dustpan for quick cleanups. Other must-haves include things like:
- Microfiber cloths for versatile cleaning
- A variety of scrub brushes for tough spots
- Refillable spray bottles for your cleaning solutions
- Waste bins with garbage bags
- Protective gear, like gloves and masks, to keep you safe
The tools you need depend on the services you offer. If you’re diving into specialized cleaning, a steam cleaner is fantastic for deep cleaning without harsh chemicals, whereas a carpet cleaner is a must for tackling stains. A window cleaning kit can help you achieve a streak-free shine, while a pressure washer is perfect for outdoor concrete. A sturdy ladder is essential for reaching high places; consider automated devices, like robotic vacuums, for added efficiency.
Pro Tip: Learn more essential tools for cleaning businesses, and download our free cleaning supply checklist to make stocking your supply closet easy.
Step Four: Competitively Price Your Cleaning Services
Setting the right prices is key to success with your cleaning business. Pricing impacts profits, customer perceptions, and your competitive edge, so it’s crucial to be competitive with your rates while not undervaluing your work. It’s also essential to find the invoicing structure that works for you, whether that’s an hourly or flat rate.
Check out our cleaning business pricing guide for a clearer look at pricing your services. Most house cleaners offer either hourly rates (e.g., $25 per hour) or a flat rate (e.g., $250 to clean a 1,400-square-foot home). Each invoicing style has its perks:
| Hourly Rates | Flat Rates | |
|---|---|---|
|
Payment structure |
Clients are charged based on the actual time spent on the job |
Clients pay a set fee for specific services, regardless of the time taken |
|
Flexibility |
Highly flexible; ideal for varied tasks or clients with changing needs |
Less flexible; better for standard, defined services |
|
Client transparency |
Clients may be unsure of the total cost until the job is done |
Clients know exactly what they will pay |
|
Invoicing process |
More complex, as it requires tracking hours worked |
Simplifies invoicing, as the cost is predetermined |
|
Earning potential |
Can lead to higher earnings for longer or more complicated jobs |
Predictable income for straightforward tasks |
|
Service range |
Suitable for a wide range of services, including unpredictable or irregular jobs |
Best for specific services, like deep cleaning or one-time projects |
|
Market competitiveness |
Can compete with other hourly service providers, appealing to clients needing less frequent service |
Appeals to clients looking for budget-friendly options with no hidden costs |
Other factors to consider when pricing your cleaning services are:
- Location: Urban areas often command higher rates due to the increased cost of living
- Competition: Research what rates your competitors offer for similar services, and consider matching or beating those prices
- Types of services: If you offer multiple cleaning services (like regular house cleaning, deep cleaning, and carpet cleaning), price each service separately and competitively
- Specialized services: Eco-friendly cleaning and commercial cleaning may command different prices
Develop tiered packages, such as basic and premium options, and bundle services for discounts. Offer special deals for first-time clients to encourage new relationships, and consider rewards for customer word-of-mouth referrals.
Pro Tip: Consider offering add-on services that let clients customize their packages to their specific needs and preferences. This approach can enhance customer satisfaction and encourage repeat business.
Step Five: Protect Yourself With Cleaning Business Insurance
All cleaning businesses, from housekeepers to janitorial services, need liability insurance to help protect against common third-party property and injury claims, like a client slipping on a wet floor, a mop handle cracking a window, or the financial fallout that can happen when a client sues a cleaner.
Cleaning business insurance doesn’t just help safeguard you against common insurance claims cleaners face; it can be a powerful tool when marketing your business. Many clients require cleaners to provide proof of insurance in the form of a Certificate of Insurance (COI). Having a COI handy shows professionalism, and advertising that you’re insured helps you earn trust from potential clients.
Insurance Canopy’s policies are tailored especially to cleaning businesses, so you get the coverage that makes sense for your business without paying for extras you don’t need. Some of the cleaners we cover include:
The types of insurance coverage that benefit cleaning businesses most often include:
General liability insurance: General liability is designed to cover third-party injury and property damage claims, including legal fees, medical expenses, and more. Many clients require proof of this coverage.
Workers compensation: Required in most states if you have employees, workers compensation covers medical expenses and lost wages for job-related injuries. This coverage is designed to protect both your team and your business from lawsuits, fines, and expensive medical bills.
Tools and equipment insurance: Tools and equipment coverage, also known as inland marine, helps pay to repair or replace your cleaning tools in covered cases of theft or damage.
What is bonding for cleaners? Learn more about what insurance coverage cleaners need and when bonding can benefit you in our guide to cleaning business insurance and bonding.
FAQs About Starting a Cleaning Business
What Are the Potential Risks of Starting a Cleaning Business?
Liability risks, like property damage, slip-and-fall accidents, employee injuries, and contractual disputes, can affect your bottom line if you don’t carry the right cleaning business insurance. Market saturation and seasonal demand fluctuations can also affect cleaning profitability.
Is Cleaning Business Insurance Mandatory When Starting a Cleaning Business?
While not always legally required, liability insurance can protect your cleaning business from costly claims that arise from accidents, injuries, client property damage, and more. Many clients require cleaners to provide proof of insurance before they’ll hire them.
What Type of Cleaning Business Is Most Profitable?
Specialized cleaning businesses (like pressure washing, post-construction cleanup, and medical cleanup) tend to have higher profit margins because there are fewer competitors to drive down prices. These niches also typically require bigger investments in industry-specific equipment.
How Much Money Do I Need to Start a House Cleaning Business?
The average cost to start a house cleaning business can be as low as $500 for a solo residential cleaner using basic supplies and a personal vehicle. Those needing a vehicle, specialized equipment, or a team of employees can expect to spend $5,000 or more in startup costs.
Our guide to cleaning business startup costs can give you a clearer picture of what you’ll expect to spend.
Do I Need a License to Do Residential Cleaning?
To do residential cleaning, you’ll likely need a business license issued from the city where you’re based. Depending on where you do business, you may also need to apply for a sales tax permit or vendor’s license. As regulations vary by city and state, check with your local city hall to confirm what licenses you need to get started cleaning houses.
