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Start a Cleaning Business: The 5 Legal Steps to Take

Published on September 2, 2021

When you start a cleaning business, it’s important to know the top legal steps to take in order to set your business up for success from the beginning.

Due to the wide range of factors involved in starting a cleaning business, use this easy guide to simplify the process and give you a jumpstart:

  • Know how to use the best business name and make it official
  • Take advantage of your CPA’s guidance
  • Make your employees legal with EIN’s
  • Find out how to register your business
  • Protect yourself with insurance
  • Utilize the best software

At the end of this complete guide, you’ll know the top legal steps you need to take to start a cleaning business and make it official.

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1. Choose the Right Name for Your Cleaning Business

Choosing the right name for your cleaning business is essential because it tells clients who you are, where you’re located, and what you do.

Also, the name you choose needs to be SEO friendly so that it’ll show up in primary keyword search results.

Choose the right name for your cleaning business that… 

  • Isn’t used in the state
  • Defines the services offered
  • Reflects who the business is
  • Separates the business from competition

After considering the above factors, brainstorm a few business names that’ll be easy to use in marketing campaigns.

Then, search your state’s database to discover whether the name is being used.

Though, please note, that while most states offer online databases, there are some that still require in-person visits or mail-in submissions.

Prior to making the cleaning business name final, make sure to choose a name that’s unique to your business.

Also, keep in mind that it doesn’t have to be complex. For example, the right name could be something as “Dallas Maid Services” or “Johnson’s Dallas Housekeeping.”

2. Meet With a Trusted CPA

When you start a cleaning business, don’t give into the potential temptation to skip meeting with a trusted CPA (Certified Public Accountant).

Prior to making crucial decisions on major things like hiring, budgeting, and registration, meeting with a trusted CPA is vital.

With the proper CPA guidance, they can help you lead you so you can get headed into the right direction.

For instance, a trusted CPA can help you with important choices such as:

  • Setting a budget that’s right for you
  • How many employees you can afford to hire
  • Deciding how you should register your business

Remember, meeting with a CPA is one of the most essential steps to successfully start a cleaning business legally.

3. Acquire an EIN for New Employees

You’ll need to get an EIN (employee insurance number), if you’re hiring cleaning employees for the first time.

Simply go to IRS.gov and fill out the online application to start the process.

Plus, their website gives you everything you need to know about the hiring process for new employers in the United States.

However, if you’re in Canada, the process is a bit different than in the United States. Rather than an EIN, you’ll need a SIN (social insurance number).

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4. Register Your Cleaning Business

Previously, we talked about how a CPA can guide you in choosing how to register your cleaning business.

Since this decision holds a lot of legal weight, how you choose to register is important.

For instance, based on how the business is registered, you can be personally liable for your business’ finances. In other words, if your business goes bankrupt, then you can too.

In addition, there are a wide range of factors to consider as you’re choosing between S Corporation or LLC registrations.

Plus, when you file next year’s taxes, how you’ve registered can make or break your business.

Under the guidance of a trusted CPA, they’ll walk you through your options, and then help you to make the right decision for your cleaning business.

Keep in mind, you might have to get licenses and certifications depending on your state’s guidelines. However, a CPA can help with this too.

5. Get Bonded and Insured for Protection from Liability

In order to protect yourself and your business from liability, you need to get bonded and insured before you begin accepting new clients.

Getting bonded is important because it protects you against paying for your cleaners’ accidents.

For instance, insurance is responsible when a cleaner steals or damages property on the job.

Plus, if a cleaner gets injured on the job, then insurance can protect you and your clients from a lawsuit.

Due to these reasons and more, getting bonded and insured is a vital assurance that protects you and your business from liability.

In turn, when you protect your cleaning business in this way, you’ll better ensure its long-lasting success.

By the way, if you can’t afford the cost of getting bonded and insured, then consider raising cleaning prices to pay for it.

BONUS: Protect Your Cleaning Business With the Best Software

Unfortunately, there will be times when a client tries to pay late - or worse, tries to avoid paying altogether (saying they already have paid).

When you choose the best cleaning service software, you can automatically charge your clients’ cards. In turn, you don’t have to spend hours chasing trying to collect late payments.

By joining Service Autopilot, all client payment information is automatically updated and instantly stored in one simple place.

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Start a Cleaning Business That’s Legal from the Beginning

Starting a cleaning business might seem complex and intimidating at first glance. Although, when you use this quick guide, you can ease your fears and simplify the process.

Start a cleaning business that’s legal from the beginning so you can:

  • Use your business name to capture the right clients
  • Ensure your finances are sound using the right CPA
  • Make sure employees are legally employed in your business
  • Prevent businesses from stealing your name by properly registering it
  • Protect yourself and your business from potential financial liabilities
  • Use the best cleaning service software to protect your cleaning business

Finally, you have everything you need to know to start a cleaning business that’s successful for many years!


Related: How to Start a Cleaning Business


Originally published Sept 2, 2021 7:00 AM

Alyssa Sanders

Alyssa is a Content Marketing Specialist II at Service Autopilot. Her bookworming began after she discovered the Harry Potter series. Her love of books evolved into writing and creating content. When she's not writing, you can find her watching a new sci-fi series or shoving her nose into a book.
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