New Jersey cleaning business license and insurance requirements

New Jersey cleaning business license and insurance requirements

Kim Mercado
By Kim Mercado
Dec 15, 2023
1 min read
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The Garden State has one of the highest concentrations of cleaning businesses in America, likely due to its close proximity to New York City. Local cleaning businesses can service their own state and the surrounding busy areas. Low startup costs and high demand make it a popular choice for many aspiring entrepreneurs.

If you want to break into cleaning in New Jersey, you’ll need to obtain all the relevant insurance and licenses before looking for clients. This article will help you learn the basics and get you covered quickly.

Jump ahead to learn about:

6 steps to starting a cleaning business in New Jersey

1. Register your business with the state

Businesses must register with New Jersey’s Department of Treasury. Sole proprietors don’t have to register with the state, but any other business structure will have to do so and pay the required fee of $125.

2. File a Doing Business As (DBA)

Sole proprietors and general partners don’t have a specific registration requirement in New Jersey. Still, filing a Trade Name or DBA (Doing Business As) with the county clerk’s office is recommended, which may carry a small region-dependent fee.

LLCs, partnerships, and corporations must also file a DBA form if they intend to operate under a name different from the entity’s legal name.

3. Get an employer identification number (EIN)

If your business has employees or is a partnership or corporation, you must obtain a free EIN from the IRS for tax purposes. Head over to the IRS website to apply.

4. Check if you need a sales tax certificate

Some goods and services, such as janitorial and other commercial cleaning, are taxable. You must obtain a sales tax certificate through the New Jersey Division of Taxation.

5. Get your professional license

Most businesses wouldn’t need a cleaning license in New Jersey, but it depends on the type of cleaning services you offer, and some may require you to register with the New Jersey Division of Consumer Affairs.

For example, say you offer cleaning services as part of a more significant contract, such as ongoing maintenance for an extended period of time. You may need to apply for a license as a service contract provider.

Additionally, some specialized cleaning services may require additional local licensing and permits, such as any businesses that may affect the environment, including window cleaning, dry cleaning, biohazard cleanup or any use and disposal of hazardous materials. This usually varies by county, so be sure to check with your local authority.

For specialized cleaning services like mold or asbestos removal, you might need to obtain a license from the New Jersey Department of Health.

If you’re not sure whether your business needs a professional license, be sure to check with the local authorities and the New Jersey Division of Revenue.

6. Check for special permits

Depending on the type of cleaning services you offer, you may need to obtain additional permits:

  • Fire code permit. If you use flammable materials or equipment, you might need a fire code permit from the New Jersey Division of Fire Safety.
  • Hazardous materials disclosure. If you use hazardous materials (like certain cleaning chemicals) or produce wastewater that contains pollutants and needs to be properly treated and discharged, you may need to disclose the information to the New Jersey Department of Environmental Protection.

Local New Jersey cleaning business license requirements

Certain counties or cities in New Jersey may have different specifications and licensing requirements that can impact your cleaning business. They might relate to any of the following criteria:

  • Licensing and permitting
  • Zoning restrictions
  • Waste management
  • Environmental regulations
  • Business taxation
  • Health and safety measures
  • Noise restrictions

Be sure to check with the local city or county clerk of the area where you’re planning on establishing a business.

Newark

Most processes are the same in Newark as in the rest of New Jersey, except for requiring a Certificate of Occupancy (COO) for the location of your business. You can get this from the owner of the building, but if the owner is no longer accessible, then you can obtain a copy by submitting an OPRA (Open Public Records Act) request.

After attaining all the other documents, you can get your Business License Application package from the Office of Central Licenses and Permits from City Hall if needed.

Stay up to date with Newark’s local laws here.

Trenton

In Trenton, you’re required to pay an annual fee to the City Clerk to retain a license for operating a business with a permanent location or branch office within the city. For all cleaning services, the fee is $300.

Stay up to date with Trenton’s local laws here.

New Jersey cleaning business insurance requirements

Getting business insurance in New Jersey is a crucial step to keeping yourself covered and protected against financial loss. Having the right policies in place can also make your business look more reliable to potential customers.

There are many types of insurance you can get, but here are some of the most common ones you should consider:

  • General Liability. A must for all cleaning businesses, general liability insurance helps covers third-party injuries and property damage. Learn more about General Liability for cleaning businesses.
  • Tools and Equipment. An optional add-on to your general liability policy, tools and equipment insurance can help you repair or replace damaged or stolen equipment to minimize the time you are unable to work.
  • Workers’ Compensation. Requirements vary by state, but workers’ comp is mandatory for businesses operating in the Garden State. This insurance can help cover employee medical bills and related expenses after work-related injuries. Learn more about Workers’ Comp for cleaning businesses.
  • Commercial Auto. If you use a vehicle for your business (such as traveling to and from client sites), then you should consider getting commercial auto insurance to protect against accidents, property damage and liability claims.

Get your business covered with NEXT

NEXT can help you get your business off the ground with our options for cleaning business insurance that’s guaranteed to be fast and affordable.

All it takes is a few minutes to fill out our online application, customize your options and obtain your proof of insurance.

Get your free online quote today.

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Kim Mercado
About the author
Kim Mercado is a content editor at NEXT's blog, where she writes and edits posts for small business owners. She enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has contributed to Salesforce, Samsara and Google.

You can find Kim trying new recipes and cheering the 49ers.

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