Jump ahead to learn about:
5 steps to starting a cleaning business in Pennsylvania
1. Register your business with the state
Before filing your documents to register your business in PA, you must decide how to set up your business. In this state, licensing and insurance requirements for a cleaning business will vary depending on the type of cleaning services you will offer. These are the first points you need to cover in the registration process:
- Choose a business structure. This is the legal framework of your cleaning business, such as an LLC, sole proprietorship or corporation.
- Make sure your business name is available. Check that your desired business name is available by searching the name in the PA Department of State’s business filing services website.
- Register your business. Depending on your business structure, you may need to register with state agencies. For example, if your business is an LLC, corporation, partnership or nonprofit corporation, you will likely need to register with the Pennsylvania Department of State.
The Pennsylvania Department of State has a really handy dedicated website for getting your business set up. You’ll need to create a user profile here to register online. If you’re not filing online, there is a list of registration forms you may need.
2. File a fictitious business statement
When operating a cleaning business in PA under a name that is not your legal name, you must register a fictitious name. This applies to sole proprietorships, partnerships, corporations and limited liability companies.
To register a fictitious name, you need to file a Registration of Fictitious Name form with the Pennsylvania Department of State and pay a filing fee.
The registration allows you to use a different name for your business than the legal name of your entity. So if your legal name is “Contessa’s Cleaning Inc.” you may want your business sign to read “Contessa’s” or “Contessa’s Cleaning”. You would need to register both these options as a fictitious name.
3. Obtain an Employer Identification Number (EIN)
If you run a business with employees, or if it’s a corporation, partnership or multi-member LLC, you need an EIN for tax requirements.
But if you’re the only one in your business, like in a sole proprietorship or single-member LLC, the IRS doesn’t make you get an EIN. Still, having one can help keep your personal and business money separate.
Getting an EIN is free. You can get one online or fill out a form called SS-4 and send it to the IRS by fax or mail.
4. Get a business license
The process to register your business varies based on several factors. There’s no general business license that all Pennsylvania businesses are required to obtain. Instead, you may need specific licenses based on the business activity.
To make sure you cover all your bases, complete the Business Registration Checklist provided by the Pennsylvania Department of Revenue.
5. Obtain a sales tax permit
In Pennsylvania, residential and commercial building cleaning services are subject to sales tax. So, you will need to obtain a sales tax license to collect and remit sales tax on their cleaning services.
You can obtain the sales tax license by completing an online business tax registration in the Pennsylvania Department of Revenue’s myPATH system. There is no fee to submit the application.
Local Pennsylvania cleaning business license requirements
City and county governments have their own sets of rules, especially in buzzy metropolises like Philadelphia or Pittsburgh. The more densely populated an area, the more regulated it tends to be. So, take the time to research the regulations in all areas where you plan to operate.
Philadelphia
In Philadelphia, every business, including cleaning services, must get a Business Privilege License from the Philadelphia Department of Revenue to operate. If your cleaning service is in certain commercial areas of the city, you’ll also need a Commercial Activity License.
Pittsburgh
If your Pittsburgh cleaning business needs to use chemicals or hazardous materials, you may need to obtain a permit from the Allegheny County Health Department. This permit ensures that your business complies with health and safety regulations. Cleaning businesses are also subject to the Business Income & Receipts Tax.
Insurance requirements for PA cleaning businesses
If you’re operating a cleaning business or planning to start one, consider investing in Pennsylvania business insurance coverage. There are several insurance options a business may choose to opt for. Here are some of the most common.
- General Liability. Broad protection against claims of bodily injury or property damage that may occur during your business operations. Learn more about General Liability for cleaning businesses.
- Tools & Equipment. This coverage can be added to your general liability insurance to help cover the cost of repairing or replacing your gear.
- Workers’ Comp. Insurance that helps provide medical benefits and wage replacement to employees who are injured on the job. In Pennsylvania, most employers are required to carry this coverage. Learn more about Workers’ Comp for cleaning businesses.
- Commercial Auto. Insurance specifically for vehicles used for business purposes, helping cover accidents and liability.
- Errors and Omissions. Helps protect against claims of professional negligence or mistakes in the services you provide.
Business insurance can protect you from unforeseen circumstances like slip and fall injuries, damage to a client’s property, employee injuries and business interruptions.
Let NEXT help you with your Pennsylvania cleaning business
Ready to start your cleaning business in Pennsylvania? Here’s a tip: consider NEXT for your small business insurance. Why? Because NEXT is 100% dedicated to small businesses like yours. We offer affordable, custom coverage for more than 1,300 small business professions, including cleaning services.
Answer a few quick questions on our online application and explore coverage options, receive a quote and secure insurance in less than 10 minutes.
Once payment is made, your certificate of insurance is instantly accessible.
And don’t worry, if you have any questions along the way, our team of licensed, U.S.-based insurance professionals are ready to assist.
Kickstart your journey with a free online quote today.
