How to start a cleaning business in California
Take these five steps to kick off your cleaning services business in The Golden State.
1. Register your business with the state
The first step to register any business in California is to check the state website for requirements. These are the steps to register a cleaning business:
- Choose a business structure. Determine the business structure of your business, such as an LLC, sole proprietorship or corporation.
- Register your business name. Choose a unique name for your cleaning business and register it with the California Secretary of State to ensure it’s not already in use.
- Register your business with state agencies. For example, if your cleaning business is an LLC, corporation or partnership, you will need to register with the California Secretary of State.
Note that If you’re a sole proprietorship, it’s not required for you to register your business.
2. File a fictitious business statement or DBA
If you’re running a business in California under a name different from your legal name, you’ll need to file a “doing business as” (DBA) form, also known as a fictitious business statement. Regardless of your business structure, you must file a DBA if you are not operating under your legal name.
You file the DBA form with the county clerk where your business operates. The filing cost varies by county — usually $10-$100.
3. Apply for an Employer Identification Number (EIN)
If your business employs people, operates as a multi-member LLC, is part of a partnership or is a corporation, you must have an EIN for tax purposes. This is essential for paying employees, managing your business taxes, opening bank accounts and applying for credit.
Getting an EIN is simple. Just go to the IRS website and follow the instructions. You’ll need to provide a name for your business and some basic information like your business address. There may be a small fee involved.
4. File for a business license
In California, there’s no statewide requirement for a general business license. However, local cities and counties may have their own rules.
Local authorities will examine your business’s specific services and determine if you need licensing. Contact the city or county clerk’s office where your business will operate for details.
5. If you’re selling products, obtain a sales tax permit
Both residential and commercial cleaning services are not subject to sales tax in California. However, if your cleaning business sells tangible goods, such as cleaning supplies or equipment, you’ll likely need a Sales Tax Permit from the California Department of Tax and Fee Administration (CDTFA). This permit allows you to collect and remit sales tax on your sellable items.
Insurance requirements for cleaning businesses in California
A small business owner must adequately protect their business from financial loss. California business insurance could make the difference between staying in business or closing shop.
But business insurance isn’t just about protection. In some cases it can be required for specific permits and licenses to do the job. It also signals to clients that you’re professional, conscientious and trustworthy. And carrying insurance could give you a leg up against other cleaners or cleaning companies in your field.
These are some of the most common types of business insurance you should consider to help protect your company:
This type of coverage helps with protection against injuries to people other than yourself or your employees, as well as client property damage and advertising injuries.
Learn more about general liability insurance for cleaning businesses.
This policy can help cover repairing or replacing your business gear in case it gets damaged or stolen.
If you operate a cleaning company in California with at least one part-time or full-time employee you must get workers’ comp insurance. This policy can help cover lost wages and medical expenses if an employee is injured on the job.
Learn more about workers’ comp for cleaners.
This type of policy can help protect small business owners against legal costs related to negligence or professional mistakes. E&O insurance can also be known as professional liability insurance.
If you or your employees drive to every job, consider coverage for vehicles used for business purposes. A commercial auto policy can help cover car accidents and some driver liability. Know that most personal vehicle insurance won’t cover work-related incidents.
Local California cleaning business license requirements
After meeting state requirements, your small business must also meet local city or county regulations. Each municipality will demand additional licensing, insurance, experience, permitting and training per its specific guidelines.
Los Angeles
Setting up shop in the City of Angels? You are required to obtain a business license to operate a cleaning business. You can apply for a business license online through the Los Angeles Office of Finance website.
San Diego
Before you kickstart any operations for your cleaning business in San Diego, it’s mandatory to secure a business tax certificate. You can do this by filling out an application at the City Treasurer’s office and paying the appropriate filing fee for your business.
San Francisco
In San Francisco, you must register your cleaning business with the city. You can register your business online through the San Francisco Business Portal.
Specialized cleaning service permits in California
Cleaners who specialize in services like carpet cleaning, pressure washing, upholstery cleaning, and similar services may need to obtain a contractor’s license specific to their type of business where they operate. This special service license or permit can be acquired through entities like the Contractors State License Board or the County License Board.
Here are a few specialized cleaning businesses that will require local permits:
Each local municipality is different, so check for local regulations and insurance requirements.
