When Grace and Kevin Reynolds started Handmaid Cleaning, they had a simple dream: to build a business that would provide exceptional residential cleaning services to their community.

Flash forward, and their $500 side hustle turned into a $500,000 cleaning empire, as they scrubbed their way to a spotless reputation. Quite literally.

The Reynolds’ story is far from unique; today, the cleaning service industry is sweeping the market with opportunities.

With the cleaning industry projected to sweep past $74 billion by 2026 in the US alone, it’s clear there’s a whole lot of dusting dollars to be made.

Whether you’re planning to target high-rise offices or local households, there’s never been a better time to dive in.

And while starting a cleaning business might sound as simple as dusting a shelf, the reality involves a lot more elbow grease—especially when it comes to the legal side of things.

That’s where doola comes in.

We’ve empowered countless cleaning service entrepreneurs to build profitable ventures from the ground up, providing tailored support from Limited Liability Corporation (LLC) formation to seamless bookkeeping.

And of course, kept their finances sparkling!

If you’re ready to turn your cleaning skills into a thriving business, our experts are just a free consultation away!

But first, let’s walk you through:

• Why you need an LLC for your cleaning service business

• A step-by-step guide to forming your cleaning service LLC

• How team doola can help you build a thriving US business

Let’s doola it!

LLC for Cleaning Services – Why?

Launching a cleaning service might sound as easy as a quick scrub and sweep, but making sure your business is legally rock-solid? That’s a whole different game.

So before you bust out the mops and make bank, you’ve got to make sure your business is on point legally.

With over 1.6 million people employed in the US cleaning industry alone, it’s clear the demand for cleaning services is skyrocketing.

But to stand out, your business needs more than just spotless work—you need the right structure to back it up.

And that’s where an LLC can become the MVP of your business structure.

Here’s why forming an LLC is the ultimate power move for cleaning service companies:

1. Shield Yourself, Not Just Surfaces

An LLC separates your personal and business assets, shielding your personal finances from any legal claims against your business.

2. Tailor Your Taxes, Pocket More Profit

LLCs offer pass-through taxation, so your business income skips the corporate tax pitstop and goes straight to your personal return, saving you from double tax trouble.

3. Credibility is Your Currency

Clients love legit businesses. An LLC gives your brand that professional edge, making your cleaning company shine in the eyes of clients and partners alike.

4. Smart, Simple, Scalable

LLCs are way easier to manage than corporations, giving you the freedom to grow without drowning in paperwork or complex admin tasks.

Up next, doola’s step-by-step guide to forming your cleaning service LLC—followed by international founders of US businesses.

doola’s 10-Step Guide for LLCs

doola has guided countless cleaning pros from humble beginnings to reputable LLCs, ensuring they don’t miss out on the powerful perks of formal business status.

Here’s your ultimate guide that’s gospel for doola-assisted LLC founders, packed with insights to elevate your business potential and clean up the competition!

Step 1: Choose Your Cleaning Business Name

Your business name is the first impression you make on clients, so choose wisely. It should be catchy, memorable, and relevant to cleaning services.

But before you get attached to a name, you need to make sure it’s available.

a. Conduct a Name Search:

Check with your state’s business registry to see if your preferred name is available.

For instance, you can easily check the name availability through Florida’s Division of Corporations, and explore additional search options if necessary.

You can also use name-checking tools to streamline the process.

b. Is the Domain Available?

A strong online presence is crucial, so verify that your business name’s domain is available for your website.

To check if a domain name is available, just enter it into GoDaddy’s WHOIS search field, and you’ll know whether the domain is up for grabs or already taken.

c. Check for Trademark Violations:

To avoid any legal complications down the road, check on Trademark Engine to ensure your business name doesn’t infringe on any existing trademarks.

Or, you can simply book doola’s compliance services to avoid legal hassles without breaking a sweat.

Step 2: Register Your Business with the State

Registering your LLC is the next big step to solidifying your business’s legal structure. This involves filing the necessary paperwork with your state’s Secretary of State office.

a. File Articles of Organization:

This document officially registers your LLC and includes details like your business name, address, registered agent, and the purpose of your LLC.

b. Appoint a Registered Agent:

Your registered agent is the official contact and your “physical address” for receiving legal documents on behalf of your business.

doola’s registered agent service ensures you never miss critical paperwork while keeping your personal information private.

At some point, if you wish to have your own US address, we can help you acquire one through our partners at Virtual Post Mail.

c. Pay the State Filing Fee:

The cost of registering an LLC varies by state, ranging from $50 to $500. This fee is a small investment toward setting your business on the right path.

Step 3: Draft an Operating Agreement

While not legally required in every state, an Operating Agreement is a must-have document that outlines how your LLC will be run.

It’s the blueprint for your business, defining roles, responsibilities, profit distribution, and decision-making processes among owners.

a. Protect Your LLC Status:

An Operating Agreement proves that your LLC is a separate entity, safeguarding your personal assets.

b. Prevent Disputes:

Clearly defining expectations prevents potential conflicts between members.

c. Customize Your Cleaning Business:

Tailor the agreement to fit the specific needs of your cleaning service, whether it’s handling customer disputes or scaling your operations.

doola simplifies the process of drafting comprehensive operating agreements for LLC owners, ensuring all critical details are covered and tailored to your business needs.

By leveraging doola’s expertise, you’re not only setting clear operational guidelines but also safeguarding your LLC from potential legal hassles down the road.

With doola’s support, you’ll navigate the legal landscape with confidence and clarity.

Step 4: Get Your EIN (Employer Identification Number)

An EIN is like a Social Security number for your business—it’s required to open a business bank account, hire employees, and file taxes.

The good news? Scoring an EIN doesn’t cost a dime, and with doola in your corner, this step is smoother than those freshly mopped floors!

We take care of the EIN application process, so you don’t have to wade through paperwork or decipher IRS jargons.

The doola team makes sure you get your EIN swiftly, freeing you up to focus on what you do best—keeping things sparkling clean!

Step 5: Obtain Necessary Licenses and Permits

Cleaning up your business’s legal requirements doesn’t stop at registering your LLC. Depending on where you operate, you may need various licenses and permits to run your cleaning service legally.

a. General Business License:

Most states require a basic business license, which allows you to operate legally within the state.

b. Specialty Licenses:

If your cleaning business deals with hazardous materials or specific types of cleaning (like carpets or windows), you may need additional licenses.

c. Local Permits:

Some cities or counties have extra requirements, so check with your local government.

Step 6: Set Up a Business Bank Account

Mixing business and personal finances can turn your books into a mess. To keep your financials squeaky clean, open a business bank account.

This step not only simplifies your accounting but also strengthens your LLC’s liability protection.

a. Separate Your Finances:

Keep your personal and business expenses discrete to avoid legal and tax complications.

b. Build Business Credit:

Establishing a separate account helps build business credit, which is crucial if you plan to expand or seek financing.

c. Streamline Bookkeeping:

With clear, distinct accounts, tracking income and expenses is a breeze—with doola’s bookkeeping services on your side.

doola makes opening a business bank account simple and easy for cleaning business owners. We guide you through the process, providing the right documentation and advice to streamline your setup.

With doola’s help, you’ll easily segregate your personal assets from business expenses, keeping your financials as spotless as your cleaning services.

Step 7: Insure Your Cleaning Business

Operating without insurance is like cleaning without a vacuum—messy and risky. Protect your business with the right coverage to safeguard against unexpected pitfalls.

a. General Liability Insurance:

Covers property damage, bodily injuries, and legal costs if a client sues you.

b. Workers’ Compensation Insurance:

If you have employees, this is usually a legal requirement, covering work-related injuries or illnesses.

c. Bonded Cleaning Service:

Many clients prefer working with bonded cleaning companies, as it ensures compensation if a job isn’t completed satisfactorily.

Talk to your insurance agent or a doola expert to determine the best coverage for your specific needs and to ensure you’re maximizing your tax deductions.

You can select from a wide range of tailored insurance plans by NEXT Insurance.

Step 8: Set Up Accounting and Bookkeeping Systems

Nothing throws dirt on your business operations like messy books. To avoid financial clutter, set up robust accounting and bookkeeping systems that keep you in the clear.

a. Track Your Expenses:

From cleaning supplies to employee wages, every dollar matters. So track where your money goes.

b. Prepare for Tax Season:

Clean financial records simplify your tax filings, ensuring you don’t overpay or miss out on deductions.

c. Use doola’s Bookkeeping Services:

With doola’s bookkeeping, you’ll have accurate, real-time financial insights that help you make better business decisions.

We handle everything from tracking transactions and managing receipts to reconciling accounts and preparing financial statements.

Our team makes sure your books stay as clean as your business practices, letting you focus on growing your empire without the numbers crunch.

Step 9: Register for Taxes

Depending on your location, your cleaning service might need to register for state and federal taxes.

This often includes sales tax permits, especially if you’re offering tangible cleaning products alongside your services.

a. Sales Tax Permit:

Required in many states if you sell physical goods.

b. Income Tax Registration:

As an LLC, your business income will usually pass through to your personal taxes, but you still need to report it correctly.

c. Self-Employment Tax:

LLC owners are subject to self-employment taxes, covering Social Security and Medicare contributions.

Step 10: Launch Your Cleaning Business

With all the legal and financial groundwork set, it’s time to roll up your sleeves and finally launch your cleaning service LLC.

a. Marketing Your Services:

Use your LLC status to your advantage by promoting your business as a professional, trustworthy operation.

b. Network Locally:

Connect with realtors, property managers, and local businesses that might need regular cleaning services.

c. Leverage Online Platforms:

From social media to local business directories, maximize your online presence to attract new clients.

More Tips for Cleaning Businesses

Now that you’ve got the legal basics down, it’s time for some additional tips to help your cleaning LLC shine.

From defining your target audience to deciding who’s handling the scrubbing, polishing, and mopping in the early days, these insights will help you fine-tune your business approach.

We’ll also cover the types of cleaning services you might offer and essential equipment you’ll need to get started—because the right setup can make all the difference between a spotless operation and a mess.

1. Who are your target clients?

From commercial corners to cozy cribs, your cleaning business has a world of potential clients.

If you’re eyeing the commercial space, are you ready to tackle large office spaces, keep school campuses spotless, or cater to small businesses?

On the residential side, will you offer services to Airbnb hosts, landlords prepping rentals, or homeowners craving that pristine look?

And here’s the key:

Niche it down.

People trust specialists. So instead of spreading your business thin by trying to operate in multiple sectors, be clear about the set of clients who would benefit from your services.

By zeroing in on a specific client type, you’ll better understand their unique needs and deliver top-notch service every time.

Carving out a niche for your cleaning business not only builds trust but also gives you a winning edge over your more generalized competitors.

2. Who will do the cleaning work?

Are you ready to roll up your sleeves and keep things lean by doing all the cleaning yourself?

Or will you be hiring a team to tackle the grime while you juggle the logistics like scheduling, marketing, and keeping those books squeaky clean?

Here are a couple of factors to consider:

• How many extra hands will you need to keep your business running smoothly?

• How much are you ready to pay your employees?

• Will there be extra costs when you bring employees on board? (e.g., compensation insurance)

• What are your service charges per client?

• How many clients do you need to be profitable?

• Will you need additional supplies, transportation, and other essentials?

doola Tip

Before you hire a team, consider doing the cleaning yourself. This hands-on experience will give you insights you need to run your business smoothly.

Benefits of this approach include:

• Low startup costs: Save money by doing the work yourself initially.

• Learn the ropes: Gain firsthand experience in the cleaning industry.

• Build a reputation: Earn trust and credibility by providing excellent service.

Once your LLC takes off, you can start hiring employees to handle the workload and focus on other aspects of your business.

3. How do you set the budget?

Many aspiring cleaning business owners wonder if they need a lot of money to get started. The truth is, you can start on a budget.

Doing the work yourself can save you money on labor costs. And always remember to factor in supplies, equipment, taxes, and insurance.

Most important, set aside money for your salary, equipment replacement, and taxes.

4. What types of cleaning services will you offer?

When launching your cleaning LLC business, the key to success is diversifying your services to attract a broader range of clients and boost your income. Here’s a list of cleaning services you can offer:

a. House Cleaning

This includes vacuuming, dusting, mopping, and general tidying up of homes and residential spaces.

b. Office Cleaning

Keep businesses spotless with services like trash removal, restroom cleaning, and surface sanitization to maintain a professional environment.

c. Deep Cleaning

Go beyond the basics with a thorough clean, tackling tasks like scrubbing grout, cleaning baseboards, and shining up appliances.

d. Move-In/Move-Out Cleaning

Perfect for those transitioning in or out of a space, ensuring everything is spick-and-span for new occupants.

e. Specialty Services

• Spring/Seasonal Cleaning: Perfect for freshening up homes during seasonal transitions.

• Sanitization Services: Great for health-conscious clients needing extra care.

• Eco-Cleaning: Offer green alternatives for environmentally minded customers.

• Carpet, Window, and Pool Cleaning: Niche services that help you stand out.

• Pressure Washing: For tough jobs like driveways and building exteriors.

Research your competitors to see what’s missing in your market, then tailor your services to fill the gaps and stand out.

Start with a few core options and gradually expand as your business grows. Decide whether to focus on residential or commercial cleaning, and consider offering one-off specialty services to give clients flexibility.

Keep your sights set on the short and long-term goals to evolve your service lineup as you grow!

Let’s Get You Started with doola

Setting up your cleaning LLC is more than just paperwork—it’s about laying the foundation for a successful and profitable business.

With doola by your side, you can scrub away the complexity of LLC formation, streamline your bookkeeping, and stay compliant with every regulation that comes your way.

We’ve helped countless cleaning LLCs, just like yours, go from mop and bucket to booming profits with our tailored support and expert guidance.

So, whether you’re dreaming of tidying up high-rise offices or keeping cozy homes spotless, doola has the tools, resources, and expertise to make your business shine.

Ready to wipe the slate clean and start fresh?

Let’s chat and get your cleaning business off the ground!