Considering starting a cleaning business? You’re on the right track. Given Texas’s large population, minimal regulations and strong economy, opening a cleaning business could be a bright idea, whether it’s residential or commercial cleaning.
We’ve researched the necessary steps, focusing on the required licenses and permits for lawful operation. We’ll also delve into the importance of insurance coverage in protecting your business’s success.
In Texas, there is no specific license or permit required to start a cleaning business at the state level. However, there may be specific requirements depending on the location of your business and the services you offer. (We’ll discuss below.) The process of registering with the state involves the following:
Small businesses often opt for sole proprietorship due to its simplicity — and if you’re launching your business in Texas, there’s no need to register with the state if you’re a sole prop.
No matter your business structure, if you plan to operate your cleaning business under a name other than your legal name, you may need to file an Assumed Name Certificate, also known as a “Doing Business As” (DBA) certificate. The requirement for a DBA depends on your business structure.
The cost to file a Texas fictitious name registration is $25. For precise requirements, consult your local governing agencies.
You need an EIN for tax purposes, hiring employees, securing business credit and opening a dedicated business bank account. Getting it is easy. Simply go to the IRS website, enter EIN in the search box, and all the instructions will be available. This is a free service offered by the IRS, and the process is very quick.
Starting a cleaning business in Texas doesn’t entail a state-level license or permit. However, it’s a good practice to verify with local city and county authorities if your specific cleaning business type requires local licenses or permits. You are, however, required to get an EIN and insurance coverage to operate legally.
If you plan to hire employees, familiarize yourself with employment laws, including minimum wage requirements, workers’ compensation and anti-discrimination laws. Follow proper hiring procedures and maintain necessary records.
Unless you only work for one household, you will need a sales tax permit from the Texas Comptroller of Public Accounts. The process involves:
Local requirements may be more specific than those of the state. There are many local regulations that must be reviewed before opening your cleaning business. They may include hours of operation in residential areas, insurance requirements based on the number of employees, usable products and more.
The City of Dallas has a very useful resource hub dedicated to helping small businesses get set up seamlessly. If your business has physical assets like inventory, equipment or machinery that generate income, you need to report these on a rendition form for the County appraisal district.
In Houston, sole proprietorships and general partnerships doing business under a different name other than the owner’s name need a DBA certificate from the county clerk’s office where the business is located. All businesses must file a rendition in the county where they operate, detailing their business personal property assets.
If you’re operating out of a premises in San Antonio, you will need to obtain a certificate of occupancy before operating a cleaning business. This certificate is required to occupy a commercial space in San Antonio. You can obtain the application form for a certificate of occupancy from the city’s official website.
Lubbock doesn’t have a specific business license requirement for cleaning businesses. However, it is important to check with the city’s Development Services Department to determine if there are any local licensing requirements or permits specific to your cleaning business. You may need a tax permit to sell taxable goods or services. It is also highly recommended to have business insurance for your cleaning business.
Like any business, having the right kind of business insurance in Texas is not just wise but sometimes mandatory. Besides risk management, insurance can enhance your business’s professional image and give your clients peace of mind, assuring them you’re a responsible business owner. Types of insurance coverage you might need include:
NEXT is here to support your growth. We understand the unique needs of small businesses and offer custom business insurance solutions tailored to your profession. With a wide range of options, affordable rates and instant access to quotes and policies, we make insurance straightforward and accessible.
In about 10 minutes, you can get a quote, purchase your policy online and download your proof of insurance.
Start a free instant quote with NEXT.
You can find Kim trying new recipes and cheering the 49ers.
