There are many reasons to learn how to start a cleaning business in NC. But before you mop and dust for pay, you must understand the license requirements, permit needs and business insurance mandates for your business in the state.
Many opportunities exist for a cleaning company serving both commercial and residential clients. To help you get off the ground, we’ve researched what you need to know to start your cleaning business in North Carolina.
Jump ahead to learn:
Local and state regulations related to licensing, insurance and safety standards can strongly impact your cleaning businesses. And compliance with these regulations is crucial.
Here are five steps to becoming a properly licensed cleaning business:
If you’re a sole proprietor, you needn’t register with the state. But limited liability companies (LLCs), limited partnerships (LPs) and corporations must apply for business registration with the NC Secretary of State. These are the steps for registering a cleaning business with the state:
If you’re planning to operate in the cleaning industry 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 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 as part of your cleaning services, 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.
You can help protect your business investment. Business insurance is usually a combination of policies tailored to help protect the health of your employees and yourself, and it can offer protection if you or someone who works for you accidentally causes damages or injury on the job.
Some of the most common types of business insurance for businesses in NC include:
General liability coverage in North Carolina can help protect against some of the most common business risks and accidents. This liability policy can help shield your business from losses associated with non-employees suffering bodily injury at your business (such as a slip-and-fall injury).
It can also be helpful if you or your employees accidentally cause property damage to someone else’s property — and you’re on the hook to repair or replace it.
Learn more about general liability for cleaning businesses.
Commercial property coverage can help protect the physical assets you need to do your job, such as a storefront or storage facility, plus equipment and inventory. It can help safeguard your business property against various risks, such as fire or theft.
A business owner’s policy, also called a BOP insurance policy, combines general liability and commercial property insurance coverage into a single, often cost-efficient and convenient package.
A BOP can carry more protection than a single policy. It can help cover damage that you or your employees may inadvertently cause to another person’s property, as well as bodily injury accidents that injure passersby on a slippery floor.
BOP keeps going to help protect your business inventory in the event of vandalism or other covered events.
In North Carolina, workers’ comp insurance can help cover work-related injuries or illnesses. This policy can help your business cover medical expenses and wage replacement for employees who get ill or suffer an injury on the job.
Learn more about workers’ comp for cleaning businesses.
If all the cleaning supplies you bought for your work — vacuums, window washers, cleaning products, etc. — were to vanish, would you have the funds to replace them all at once?
If your owned or borrowed equipment gets stolen, lost or damaged, this coverage could help you get you back to work fast and help with replacement or repairs — in your vehicle, in storage or at a job site.
Tools and equipment coverage is an add-on to general liability insurance for contractors and cleaning businesses.
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.
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 than a more rural area.
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 chemicals or hazardous materials, you may need to comply with environmental regulations and obtain the necessary permits.
In Raleigh, you need to get a Business Privilege License from the City. If you plan to operate your cleaning business from home, you may need to comply with specific regulations for home-based businesses, such as a Home Occupation Permit.
NEXT can help you get your business off the ground with cleaning business insurance that’s fast, affordable and reliable.
In about 10 minutes you can fill out our online application, customize your insurance options and get proof of insurance. And you can do it all online.
Access your policy 24/7 via web or mobile app. And if you have questions, our licensed, U.S.-based insurance professionals are available to help.
Kim Mercado is a content editor at NEXT. She writes and edits content for small business owners, and 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.
