Discover all you need to know about starting a cleaning company, from incorporation to business planning to insurance.
What you’ll discover:
Choose an Entity Type
Contracts and agreements must be prepared.
Get the Right Insurance
Do you have a natural talent for cleaning? If this is the case, establishing a cleaning service might be a profitable option for you if you’re thinking about starting your own business. Before you grab your broom and dustpan and begin giving your services, you need first understand how to establish a cleaning company from the ground up.
Table of Contents
Choose an Entity Type
Thankfully, all 50 states allow for online incorporation. Although incorporation is simple, there are three main entity kinds to consider, particularly if you want to hire workers. LLCs, S-Corps, and C-Corps will be among these entities.
An LLC offers the finest tax advantages for company owners and is an excellent solution for the majority of firms. A C-Corp will serve as a distinct legal entity and give these advantages if you want to have shareholders or if you wish to be free of any debt or legal responsibilities. An S-Corp offers extra tax advantages to company owners, but it does not function as a distinct legal organization.
Each of these company kinds has advantages and disadvantages that should be explored or addressed with a lawyer or CPA before beginning a cleaning firm in your state.
Contracts and agreements must be prepared.
When dealing with new clients, one of the most common errors new company owners make is failing to use suitable service contracts. A contract will offer you with a legal protection as a company owner against customers who refuse to pay costs after work has been finished, or clients who have unreasonable expectations of the job that is to be done.
As a cleaning company, you should always have a few paperwork ready to be printed and signed. These papers are as follows:
Janitorial Contracts: A broad contract that specifies payment conditions, services to be provided, and term duration.
Housekeeping Contracts: This agreement will include a description of the job to be done, payment conditions, and any other relevant agreements to which both the employer and the housekeeper agree.
Get the Right Insurance
Understanding that you are legally accountable for any damages you may do is one of the first stages in learning how to establish a cleaning service. As the owner, you must get appropriate insurance to pay legal bills and settlements in the event that a lawsuit is launched against you.
When beginning a cleaning company, you must get the following insurance:
Insurance against liability
Insurance for workers’ compensation (where applicable)
All commercial cars must have auto insurance.
These fundamental insurance options are required and will enable you to run your company with less risk.
When you’ve incorporated, compiled your contracts, and gotten the necessary insurance and permits, you can begin cleaning houses and, perhaps, increasing your company along the way.
