Ohio is a fantastic place to start a cleaning business. To help protect your investment, and to make your business appear professional and conscientious, having the right business insurance, state and city licenses and permits for the type of cleaning you plan to do are essential.
Keep reading to learn the Ohio cleaning business license and insurance requirements in clear, easy steps.
Jump ahead to learn:
Step by step, take these actions to help you get a legitimate, compliant cleaning company off the ground.
Unless you are a sole proprietor, a cleaning business must register with the Secretary of State, just like you would when starting a business of any kind. To get registered, you need to:
In Ohio, if you’re a sole proprietor, an LLC, a partnership, or a corporation, and you want to operate your company under a name that isn’t its legal name, you need to register that name as a DBA.
For instance, if your legally registered trade name is “Buckeye Cleaning Biz Inc.” but you want your shop sign to read “Buckeye Cleaning,” you’ll need to register “Buckeye Cleaning” as a DBA name. To do this, file a fictitious name form (DBA) with the Ohio Secretary of State.
If you’re starting a business with partners, forming a corporation or hiring employees, you’ll need an EIN for business taxes. It’s also needed to open a business bank account, get business credit cards or apply for a business loan.
Even if you’re a sole proprietor or the only member of a limited liability company (LLC), having an EIN is useful for your business entity. It helps keep your personal and business finances separate and shows that you’re serious about your business.
Getting an EIN is easy and free. You can apply online or fill out form SS-4 and send it to the IRS by fax or mail.
All cleaning businesses in Ohio must obtain a business license from the county where they will operate. Some cities may also have additional licensing requirements.
The type of business license you need will depend on the cleaning business you’re operating and where you plan to operate it. If you need more clarification on which licenses you may need, you can contact the local city or county auditor’s office for assistance.
In Ohio, you don’t need to apply for a state business license, but you need a vendor license to pay state sales tax if you work with any commercial entity. Without it, you may be liable for penalties and fines.
You’ll also pay estimated self-employment income taxes (using Form IT 1040ES), similar to how self-employment taxes are paid to the federal government.
Residential house cleaning businesses should check with the local city or county auditor’s office for licensing requirements.
Once a business reaches $150,000 annually, it must register with the state and pay Ohio Commercial Activity Tax (CAT).
In business, insurance is your safety net. A single claim or loss can spell disaster, so covering your most common risks is key. Keep things tidy by safeguarding your cleaning business and client.
Here’s a breakdown of some of the most common types of Ohio business insurance coverage to help protect you and your business:
General liability coverage in Ohio 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 Ohio, workers’ comp insurance is crucial if you have four or more employees. The coverage 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.
Depending on where your business operates, you may need to apply for additional licenses and permits from your local city or county.
Many businesses in Cleveland need a City of Cleveland Business License. The license cost can vary based on the type of business and the number of employees. Contact the City of Cleveland’s Zoning Department to confirm if your business location is zoned for commercial or industrial use.
Starting a Columbus cleaning business? Apply for a City of Columbus Business License. The cost of the license varies depending on the nature of your business. If your cleaning procedures involve the use of potentially harmful substances, you may need to obtain special permits.
NEXT is 100% dedicated to small businesses. We have insurance for your cleaning business that’s fast, easy and affordable.
Answer a few questions online. You’ll see your coverage options, get a quote and buy your policy in about 10 minutes. Plus, you’ll have immediate access to your certificate of insurance immediately after payment.
And if you have any questions, our licensed, U.S.-based insurance professionals are ready to assist.
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.
