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5 steps to starting a cleaning business in Illinois
1. Register your business with the state
There are situations where a license for a cleaning business may not be mandatory in Illinois, such as in the case of a small sole proprietorship.
These are the typical steps involved when registering a cleaning business:
- Decide on a business structure: Decide whether your company will operate as a sole proprietorship, corporation, LLC or any other business structure.
- Register your company name: Verify the availability of your chosen business name through the state website’s name search and post a fictitious name notice.
- Register your business: LLCs, LPs, LLPs and corporations will need to register with the Secretary of State’s Department of Business and pay a filing fee.
2. File a fictitious business statement
In Illinois, if you’re operating a cleaning business under a name that’s not your legal name, you’ll need to register an “Assumed Name” or “doing business as” (DBA) certificate. LLCs and corporations do this through the Secretary of State Department.
Sole props register with the county clerk where their business is based. This allows you to use a business name different from your entity’s legal name. The filing cost can vary by county.
3. Get an Employer Identification Number (EIN)
If your cleaning business in Illinois has employees, is a multi-member LLC, is part of a partnership, or is a corporation, you’ll need an EIN for tax purposes. This number is crucial for paying your employees, handling your business taxes, opening bank accounts and applying for credit.
Getting an EIN is easy. Just head over to the IRS website and follow the steps. You’ll need to provide your business name and basic info, like your business address. And it’s free of charge.
4. Obtain a business license
Residential and commercial house cleaning service businesses must apply for a business license at their city and county clerk’s offices. The specific services your business offers can determine the type of license you need. You’ll want to contact the city or county clerk’s office where your business will be located. They can provide information about specific licensing requirements and procedures.
5. Register for a sales tax permit
Visit the Illinois Department of Revenue website and navigate to the Business Registration page. You can register online using the MyTax Illinois portal. Create an account, complete the registration process and submit it through the portal.
Local Illinois cleaning business license requirements
Generally, the bigger the city, the stricter the rules. So, knowing all the local guidelines before you start your cleaning business is essential. Local city and county governments set the rules for business licenses and permits. Always check with them to make sure your business follows all local rules.
Chicago
You’ll need a general business license to run a Chicago cleaning business. You can get this license from the City of Chicago’s Business Affairs and Consumer Protection (BACP) department. If your cleaning business offers specialized services like carpet cleaning, you might need to get additional licenses or permits like a water discharge permit.
Also, if your cleaning business deals with hazardous materials or offers janitorial services to commercial buildings, follow Chicago’s specific regulations for these services. You might need to get extra permits or certifications.
Springfield
If you’re setting up a cleaning business in Springfield, you’ll first need to secure a general business license. You can get this through the City Clerk’s Office or the Office of Economic Development.
Keep in mind, if your cleaning business offers certain services, you might need to get additional permits or licenses.
Peoria
Peoria businesses will need to start by securing a general business license. There might be additional permits or licenses that you need to get, depending on what you do. For instance, providing mold remediation services would require a specialized license from the Illinois Department of Public Health.
And don’t forget about health and safety regulations in Peoria. It’s key that your cleaning practices are up to par with the standards set by both the Illinois Department of Public Health and any local health departments.
Insurance coverage for cleaning businesses
Having business insurance in Illinois is a must for cleaning businesses. While some coverages like general liability are not required by law, insurance is a safety net you’ll need if you run into unexpected issues such as claims, damages or even theft.
Common types of insurance coverage recommended for cleaning businesses in Illinois include:
- General Liability. The foundation of a cleaning business’s protection, with coverage that extends to client injuries, client property damage and advertising injuries. Learn more about General Liability for cleaning businesses.
- Workers’ Compensation. In Illinois, if your cleaning business has employees, it’s mandatory to have workers’ compensation coverage. This insurance helps pay for the medical expenses of employees who suffer injuries or fall ill while performing their job duties. Learn more about Workers’ Comp for cleaning businesses.
- Commercial Auto. You need a way to get to and from your clients’ homes and offices. Your personal auto insurance policy won’t cover you if you’re in an accident while driving for work, but a commercial auto policy helps protect vehicles owned by your cleaning company.
- Errors and omissions. Can protect your business from claims of negligence related to your professional services.
- Tools and Equipment. At NEXT, this coverage is an add-on to a general liability policy that pays to repair or replace your equipment and supplies if they’re damaged, or someone steals them.
Different cleaning businesses may require more specialized coverage, so it’s crucial to discuss your unique needs with a licensed, experienced insurance professional.
How NEXT empowers your cleaning business
At NEXT, we’ve got your back with customized small business insurance tailored to shield you from life’s unexpected curveballs.
We get it; running a small business is no cakewalk — it’s a round-the-clock gig. That’s why we hand you the reins with 24/7 DIY access. You can manage your coverage on your terms whenever it suits you best.
Grab your free quote, explore your options and get covered — all within just 10 minutes online.
