Ohio is a fantastic place to start a cleaning business, thanks to its entrepreneur-friendly environment, manageable taxes and supportive local communities. But where do you begin when you’re just starting out?
This guide will walk you through the Ohio cleaning business license and insurance requirements in clear, easy steps. What’s more, we’ll advise on the best insurance solutions to safeguard your business from my issues as you roll out your small business success story.
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:
Pay the appropriate filing fee, which starts from $99 for LLCs, LPs and corporations.
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 run a corporation, a partnership, a multi-member LLC, or a business with employees, it’s necessary to obtain an EIN. You need this number for business taxes, compensating your employees, setting up bank accounts and securing credit.
The process to get an EIN is quite simple. Just visit the IRS website and follow their guidelines. You’ll be required to enter details about your business, such as its name and address. Be aware that this procedure may involve a minor fee.
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).
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.
Keep things tidy by safeguarding your cleaning business and client. Here’s a breakdown of typical Ohio business insurance coverages to include in your business plan:
In business, insurance is your safety net. A single claim or loss can spell disaster, so covering your most common risks is key.
NEXT makes obtaining cleaning business insurance fast, easy and affordable.
When you answer a few simple questions through our online application, you can see coverage options, get a quote and purchase insurance in less than 10 minutes.
You’ll get immediate access to your certificate of insurance as soon as you make a payment. If you have questions throughout the process, our licensed, U.S.-based insurance professionals are standing by to help.
Get started with your free online quote today.
You can find Kim trying new recipes and cheering the 49ers.
