The steady growth in North Carolina’s economy makes this the perfect spot for new businesses to set up shop — and more opportunities for a cleaning business to get involved in commercial and residential projects.
When you start your business, you must cover NC’s license and insurance requirements. To help you get off the ground, we’ve researched the essential steps you need to take to start your cleaning business.
Yes, there are licensing requirements in North Carolina. Local and state regulations related to licensing, insurance and safety standards can strongly impact cleaning businesses. Staying compliant with these regulations is crucial.
You can determine licensing requirements by the state as well as the local area of coverage. Before applying for a license, you need to determine the business’s structure, which will determine the license and permit needed.
Here are the steps to becoming a properly licensed business:
If you’re a sole proprietor, you needn’t register with the state, but LLCs, LPs and corporations must apply for registration with the NC Secretary of State. These are the typical steps involved when registering a cleaning business:
If you’re planning to operate your cleaning business under a different name from your legal name, you’ll need to file a form known as “doing business as” (DBA) or an assumed business name. This is required regardless of whether your business structure.
You should file the DBA form with the county or counties where your business operates. Please note that the cost for filing varies by county.
Apply for an EIN on the IRS website, in person, by fax, by phone, or with the help of a third party. There’s no cost involved.
You’ll need an EIN for things like opening a bank account, getting credit cards for your business, or getting a business loan.
North Carolina issues more than 700 occupational licenses and permits at the state level. Local jurisdictions, such as cities or counties, may also have their own business license regulations and requirements.
Plus, NC has some strict regulations and permitting requirements for businesses dealing with hazardous waste. If you’re handling any medical or solid waste, you must have the proper permits.
Consult with your area’s municipality or county governments about any additional licenses or permits needed. These could include zoning permits, signage permits and home occupancy licenses.
Both residential and commercial cleaning services are not subject to sales tax in North Carolina. However, if your cleaning business sells tangible goods, such as cleaning supplies or equipment, you’ll likely need a sales tax permit from the North Carolina Department of Revenue. This permit allows you to collect and remit sales tax on your sellable items.
North Carolina is a highly eco-friendly area and emphasizes green cleaning. Thus, some regulations may be more strict than in other states.
City and county governments will have specific regulations you must follow. For instance, operating in a city such as Charlotte will be much different from a more rural area simply because of the magnitude of population size.
Are you planning to serve the Charlotte area? Visit the City of Charlotte website to learn all you need to know about starting a business there. For example, if your cleaning business involves using specific chemicals or hazardous materials, you may need to comply with environmental regulations and obtain the necessary permits.
In Raleigh, you would need to obtain a Business Privilege License from the City of Raleigh. If you plan to operate your cleaning business from home, you may need to comply with specific regulations for home-based businesses, such as obtaining a Home Occupation Permit.
Protect your cleaning company, employees and equipment by putting necessary safeguards in place. Here are common types of business insurance coverages for businesses in NC:
While your business may need more specialized coverage, the above policies can help protect most businesses from everyday risks — especially when you’re just starting.
We are fully committed to supporting small businesses and recognizing their unique needs. Teaming up with NEXT can assist you in taking the necessary risks to expand and enhance your business while ensuring you have essential business coverage.
You can get a quote, tailor your choices and obtain your certificate of insurance within approximately 10 minutes.
Get started with your free online quote today.
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