Jump ahead to learn about:
How to start a cleaning business in New York
1. Choose a business structure
To give your cleaning business a legal identity in New York, you need to register it with the state. The filing fee depends on your business structure:
- LLC: $200
- Corporation: $125
- General Partnership: $50
- Limited Partnership: $200
If you’re operating as a sole proprietor, you aren’t required to register your business with the state. However, it’s essential to understand the distinctions between independent contractors, LLCs, and sole proprietors.
2. File a ‘Doing Business As’
For sole proprietors or businesses using a name other than their legal name, a fictitious business statement, also known as a “Doing Business As” (DBA) form, must be filed with the New York Secretary of State. Filing a DBA form usually costs $25, however, there may be separate charges.
3. Get an Employer Identification Number (EIN)
Obtaining an EIN is easy and the same for every state. Simply go to IRS.gov and search for ‘EIN application.’ Complete the application, send in a small fee, and the EIN will typically be generated within a few days.
4. Get a business license
You’ll need to get a general license required for most businesses to operate within the state. Business licenses are usually issued by the New York Secretary of State. These licenses help ensure that businesses comply with the laws and regulations and that they maintain the standards set in their respective industries.
There is no requirement to get an occupational license specifically for the cleaning industry at the state level.
5. Obtain a Certificate of Authority
As a cleaning business, you are classified as a service provider in New York and will require a Certificate of Authority (tax certificate). The certificate allows New York businesses to collect and pay sales tax on the goods and services sold.
Businesses can easily apply for a sales tax permit through the New York State Department of Taxation and Finance. Currently, there is no charge to apply.
Local New York cleaning business license requirements
After satisfying the State’s requirements, it’s equally important to adhere to local regulations. Each city or county in New York may have specific licenses or permits you need to operate legally. Check with your area’s city or county clerk to determine these local requirements.
New York City
Setting up in the New York City? If you’re using a trade name, you will likely need a Certificate of Assumed Name, as mentioned above. An exception is a sole proprietor: They only need to file a business certificate if they’re using a trade name. All businesses can file for a certificate directly with the county clerk’s office in their local borough.
Buffalo
Cleaning businesses can set up shop in Buffalo without a specific license or permit.
If you plan to have a storefront or worksite for operations, check with the Zoning Department to confirm that your business type is allowed in your desired location and zone. Running a business in a building that isn’t zoned for that type of activity is illegal.
Rochester
Similar to Buffalo, there are no license or permit requirements for opening a cleaning business in Rochester. Check with Rochester’s Department of Neighborhood and Business Development for any specific local requirements you may need to fulfill.
Insurance requirements for New York cleaning businesses
Business insurance is essential for your cleaning business. Many potential clients require proof of insurance before hiring you. What’s more, insurance can also help you get licenses and permits. Here are some of the most common types to consider:
Bond requirements for New York cleaning businesses
Though not required by law, surety bonds can enhance your credibility and make your cleaning business more marketable. Bonds offer financial assurance to clients that you will fulfill your contractual obligation.
Janitorial bonds are a type of surety bond that protects your clients from theft. While not legally required, some clients may insist on working with bonded companies.
Please note that bonds and insurance are different. Compared with insurance, your bond carrier (surety) will expect repayment when it pays out a claim. And while NEXT offers affordable, easy business insurance, we do not offer cleaning bonds.
How NEXT helps cleaning businesses
NEXT simplifies the process of obtaining cleaning business insurance in New York. With a brief online application, you can explore coverage options, receive a quote, and purchase insurance in under 10 minutes.
As soon as your payment is made, you’ll immediately be able to access your certificate of insurance. Throughout the process, licensed insurance professionals are available to assist with any questions.
Get your cleaning business on the right track with your free online quote today.
