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Why Start a Cleaning Business in California?
Looking to start a cleaning business in California? California is an awesome location for cleaning businesses because of its dense population, diverse industries, and booming economy. There’s a thriving tourism industry that creates an on-going demand for cleaning services. And if you’re interested in a niche market, California’s commitment to sustainability and green living has led to an increased demand for eco-friendly cleaning services.
This article will provide all the essential information you need to know on how to start a home cleaning company in the state of California, including necessary permits, training for staff, equipment needed, insurance requirements, and more. Let’s get started!
A quick note:
The contents of this article are meant to help you grow your cleaning business, but should not be taken as legal advice. Always consult with an attorney and/or accountant to help make legal and financial decisions. If you need help finding a professional in your area, see what other cleaning business owners recommend in our ZenMaid Mastermind.
We suggest reading these articles first if you haven’t already:
Do I Need a Cleaning License in California?
In California, there is no state-wide licensing requirement for starting a cleaning business. However, some cities and counties within the state may have local regulations and business license requirements that must be met.
File/Register Your Business with California
The cost of registering a business in California can vary depending on the type of business structure you choose and the specific requirements of your local government. In general, the following fees are commonly associated with registering a business in California:
LLC: A limited liability company (LLC) must file Articles of Organization with the California Secretary of State, which costs $70 to apply. Your annual fee will depend on your income level.
Sole Proprietorship or Partnership: If you are operating as a sole proprietorship or partnership, you will need to obtain a business license from your local government, which typically costs between $50 and $100 in California.
Corporation: Incorporating a business in California requires filing Articles of Incorporation with the California Secretary of State, which costs $100, as well as obtaining a business license from your local government, which typically costs between $50 and $100.
Business license requirements in California
California does not require a business license for general house cleaning businesses. But as things often change, check with the state’s licensing needs when registering a new business.
Be sure to also check with your individual county, city, or local municipality. Requirements can vary and some may need a general business tax, licensing, or other filing requirements for business. Search for special filing requirements right here.
You can also call your local municipality office and inquire if this is required.
If you’re planning to hire employees, you will need to register with the California Employment Development Department and obtain workers’ compensation insurance to protect your employees and your business.
Getting business insurance
For a breakdown of why you need insurance, the different kinds of insurance to consider, plus the difference between insurance and bonding, read this guide first.
It is recommended to have business insurance when starting a cleaning business in California. Business insurance can help protect your business and personal assets in the event of a lawsuit or other legal claim. Common types of business insurance to look into for cleaning businesses include general liability insurance, worker’s compensation insurance, and commercial property insurance. You can learn more about getting business insurance for your cleaning company at this Commercial Insurance Guide.
