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5 steps to starting a cleaning business in Georgia
1. Register your business with the state
In Georgia, the process of registering your business with the state varies based on your business structure. If you’re operating as a limited liability company (LLC), limited partnership (LP) or corporation, it’s a legal requirement to register with the Georgia Secretary of State.
You can complete this registration online, by mail or in person. The filing fee is $100 for online registrations and $110 via mail or in person.
However, if you’re a sole proprietor, there’s no need for state registration.
2. File a ‘doing business as’ (DBA) if needed
If you’re a sole proprietor and want to operate your business under a name other than your legal name, you must file a fictitious business statement, also known as a DBA form, with the clerk of the superior court in the county where your business is located.
This also applies to partnerships, corporations and limited liability companies that operate under a different name than the entity’s legal name. The cost to file a DBA in Georgia may vary by county.
3. Get an employer identification number (EIN)
If you’re starting a business with partners, forming a corporation or hiring employees, you’ll need an EIN for tax purposes. It’s also needed to open a business bank account, get business credit cards or apply for a business loan.
Even if you’re a sole proprietor or the only member of an LLC, having an EIN is useful. It helps keep your personal and business finances separate and shows that you’re serious about your business.
Getting an EIN is easy and free. You can apply online, in person, by fax, by phone or with the help of a third party. You can also fill out form SS-4 and send it to the IRS by fax or mail.
4. Apply for a business license
Georgia residential and commercial cleaning businesses must apply for a business license at their city or county clerk’s office. While there’s no specific license required to clean houses in Georgia, depending on the particular services you offer and the city or county where you operate, you may need to obtain additional licenses. The city or county where you operate your business issues these licenses.
5. Obtain a sales tax permit if needed
In GA, sales tax is typically imposed on the “transfer of tangible personal property.” If your cleaning service doesn’t involve selling products, you generally don’t need to collect sales taxes. The supplies you use for cleaning homes don’t count as a “transfer” of tangible personal property.
While you must pay sales tax on these supplies when you purchase them, they’re not taxable to your customers. However, checking with the Georgia Department of Revenue or a tax professional is always a good idea to ensure you’re meeting all your tax obligations.
Local GA cleaning business license requirements
Once you’ve met the state’s requirements, remember to also check your local regulations. In major cities like Atlanta or Augusta, regulations can be more stringent due to the larger population. Research the requirements in all areas where your business will operate, not just where your home office is located.
Residential cleaning services in GA often don’t need a license and face few local restrictions. However, commercial cleaning services, especially those dealing with hazardous waste, may need additional permits, so check with local authorities.
Atlanta
If you’re launching a cleaning business in Atlanta, you will need to apply for a business license through the City of Atlanta’s Office of Revenue. You may need to give them information about your business, such as the type of business, location, ownership details and any necessary permits or certifications.
Depending on the nature of your business, you may also need to comply with additional regulations and obtain permits from other city departments, such as the Department of Planning and Community Development or the Department of Public Works.
Augusta
The Augusta-Richmond County Licensing and Inspections Department handles the business license process. To get your license, fill out an application form, share details about your business, and pay the necessary fees. If your business type requires it, you might also need to submit extra documents like proof of insurance or professional licenses.
Columbus
Starting a cleaning business in Columbus? You’ll need a general business license. Columbus-based businesses without a physical location elsewhere in the state may be liable for statewide receipts tax.
Insurance requirements for Georgia cleaning businesses
Having adequate business insurance in Georgia is crucial for the success of your cleaning business. It helps protect against various risks your business may be exposed to. These are types of coverages common to cleaning businesses.
- General Liability. Broad protection against customer injuries, client property damage and advertising injuries. Learn more about General Liability for cleaning businesses.
- Tools & Equipment. This coverage can be added to your general liability insurance to help cover the cost of repairing or replacing your gear.
- Workers’ Compensation. If you own a cleaning company in Georgia that has three or more employees, your business is required to have workers’ compensation coverage. This policy helps cover lost wages and medical expenses if an employee is injured on the job. Learn more about Workers’ Comp for cleaning businesses.
- Commercial Auto. This coverage is specifically for vehicles used for business purposes, helping cover accidents and liability.
- Errors and omissions. Helps protect small business owners against legal costs related to negligence or professional mistakes.
How NEXT helps cleaning businesses
At NEXT, we’re 100% dedicated to small businesses. We understand that obtaining insurance for your cleaning business should be fast, easy and affordable. With just a few clicks, you can see coverage options, get a quote and purchase insurance in less than 10 minutes.
Plus, you’ll have immediate access to your certificate of insurance once you make a payment. And if you have any questions, our licensed, U.S.-based insurance professionals are ready to assist. Ready to take the next step?
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