When most people think about “starting a business,” they imagine mountains of paperwork, complicated legal requirements, and expensive consultants.
Here’s the reality for a cleaning business: you can be legally operational in most places within a single afternoon, often for $0-100 in total fees.
This chapter will show you just how simple the legal side can actually be. People are already running successful cleaning businesses in your area, and they all started with these same basic steps. In most countries, being self-employed requires surprisingly little paperwork as long as you keep your receipts and maintain a good record of your income and expenses.
Once you’re properly set up, you’ll discover one of the most exciting benefits of business ownership: tax deductions. We’re talking about deducting everything from your cleaning supplies to that industry conference in a beautiful location. But we’re getting ahead of ourselves….
What You’ll Learn
By the end of this chapter, you’ll understand:
- How to choose the right business structure and why sole proprietor is perfect for starting out
- What registration and licensing you actually need (it’s less than you think)
- Why insurance is the one non-negotiable investment
- How to research your specific local requirements in about 30 minutes
- The exciting world of tax deductions and what you can actually claim
- Simple systems for tracking income and expenses
Choosing Your Business Structure
For most new cleaners, there’s one perfect starting point: operating as a sole proprietor (or Sole Traders)
This structure means you’re self-employed and running your business under your own name or a registered trade name. All your business income and expenses are reported on your personal tax return. That’s it. No complicated corporate structures, no expensive legal fees, no annual reporting headaches.
This is perfect because you can start immediately, setup costs are minimal, tax filing remains straightforward, you maintain complete control, and you can always change structure later if needed.
Different countries call it different things – “sole proprietorship” in Canada and the US, “sole trader” in the UK and Australia – but the concept is the same everywhere.
What about LLCs, companies, corporations, or other fancy structures? These options can provide additional legal protection and tax benefits down the road. But they also come with higher setup costs, annual fees, and more complex paperwork. Unless you’re immediately hiring multiple employees or taking on unusual liability risks, save yourself the complication. You can always incorporate later once your business is thriving and generating steady income.
For now, sole proprietor is the simplest and usually the best option.
Registering Your Business Name
You have two straightforward options here.
Option 1 is to use your own name: “Sarah Johnson Cleaning Services” or “Mike Smith House Cleaning.” Simple, professional, and in many places you won’t need to register anything beyond maybe a general business license. And even that might not be needed.
Option 2 is to create a trade name that feels more like a brand: “Sparkle & Shine Cleaning” or “The Tidy Home Co.” If you go this route, you’ll typically need to register it with your local government- a process called different things in different places (DBA in the US, Business Name Registration in Canada and Australia, or just “business name” in the UK).
The registration process is usually straightforward: check that your desired name isn’t already taken, file a simple form online or at your local registry office, pay a small fee (typically $10-$100), and receive confirmation within days or weeks.
Important Note: Coming up we have an entire chapter dedicated to the fine art of choosing the perfect name.
What Licenses and Permits Do You Need?
Here’s the good news: in most regions, cleaning businesses don’t require special licenses or certifications.
What you sometimes might need is a general business license (usually $25-$150) and possibly a home-based business permit if you’re working from home.
The requirements vary by location, so you’ll need to research your specific area. Search online for “legal requirements to start a home business in [your city]” or “business license requirements [your area]” and check your local government website. Most of this information is readily available online and takes about 30 minutes to find.
Do a quick online search…
Every region has slightly different rules, so spend a bit of time understanding exactly what applies to your situation.
Throughout this book we get you to search online for many things. We recommend going to DuckDuckGo to search and then clicking on the Search Assist section at the top of the page. This uses AI to summarise all the common information from a variety of websites.
Try it now – Search online using terms like:
- “what are the legal requirements to start a small business in [your city]?”
- “sole proprietor registration in [your area]”
- “self-employed cleaner requirements in [your region]”
- “when do I need a business license in[your city]?”
You don’t need to be an expert in business law – and starting a small business is usually very simple.
Insurance
Liability insurance protects you if you accidentally damage a client’s property or if a client makes a claim against you. For a solo cleaner, expect to pay $300-$600 per year.
This is the one area where you shouldn’t cut corners. Get quotes from at least three insurance providers by searching for “cleaning business liability insurance [your country].” Many insurers offer policies specifically designed for cleaning businesses.
In some countries you might also consider being “bonded” – a surety bond that protects clients. This typically costs $100-$300 annually. Again do a search – As a solo cleaner do I need to be bonded in [insert country]?
Tax Deductions
Now we get to the fun stuff. One of the biggest advantages of being self-employed is that you can deduct legitimate business expenses from your taxable income. Anything you purchase or use primarily for your cleaning business may be deductible.
Here’s how it works in simple terms. Let’s say this year you earn $35,000 from cleaning, and you have $8,000 in legitimate business expenses. You’re only taxed on $27,000. Those deductions directly reduce your tax bill, often saving you thousands of dollars per year.
Note: This is an often quoted difference between the rich and the poor - "The Rich (self employed) earn money, buy stuff and if anything is left over they pay tax. Meanwhile the poor (employed) earn money, pay tax and if anything is left over, they spend it!"
You Can Even Deduct From Other Income:
Another interesting concept in many countries is the fact that any startup costs can often be deducted against tax paid on other income. If you (or a legal partner, spouse etc) already have a job and are starting this business on the side then any losses from setting up this business could be claimed against tax already paid from your employment. You might actually get a tax refund! (ask a local tax professional for details).
So what can you actually deduct?
You can deduct pretty much anything that you use for your business. The key is it must be a genuine business expense. Don’t try and put things through the books that you know you shouldn’t. That’s inviting disaster if you ever get audited.
The Obvious Stuff:
- All your cleaning supplies and solutions,
- Vacuum cleaners and equipment, (mops, buckets, cloths etc),
- Protective equipment like gloves and masks,
- Uniforms or work clothing (purchased just for cleaning),
- Vehicle expenses,
- Phone and internet service (the business portion),
- Business insurance premiums,
- Website hosting and domain from companies like MaidHost,
- Business cards and advertising materials,
- Professional fees such as from the bank or accountant.
The Really Good Stuff:
And now this is where it gets interesting.
Professional development expenses are also fully deductible: training courses, cleaning workshops, business skills classes – anything that makes you better at your job.
Vacations Industry conferences and trade shows: These are deductible too, and this is genuinely exciting. Did you ever wonder how rich people seem to be able to travel so often? They make sure it’s a “business trip”. This is the reason that most conventions and conferences are held in vacation locations.
The cleaning industry has professional conferences, trade shows, and educational events around the world. If you attend one for legitimate professional development, your expenses can be deductible: conference registration fees, travel costs (flights, trains, fuel), accommodation, and even meals (usually 50% deductible).
So if there’s a cleaning industry conference happening in a beautiful location and you attend for genuine professional reasons, those costs can be legitimate business expenses. Major events like ISSA/INTERCLEAN (the world’s largest cleaning show, held in different cities globally) or regional cleaning expos are exactly the kind of professional development that’s both valuable for your business and tax-deductible. You’re learning about new products, techniques, networking with other professionals, and discovering business strategies – all while potentially visiting somewhere interesting.
Then in the evening after you’ve filled your brain with all that professional development you can hang out by the pool and enjoy yourself! Hey even busy professionals need down-time right?
Your Home: If you use a portion of your home regularly and exclusively for business administration – storing supplies, doing bookkeeping, managing schedules – you can usually deduct a proportionate amount of your rent or mortgage, utilities, and home insurance. This can add up to quite a lot and is called a home office deduction.
Your Car: Vehicle expenses are often one of the biggest deductions for cleaners. You’re driving to client homes every day, stopping for supplies, handling business errands. You usually have two options: track every business mile driven and multiply by your country’s standard rate, or track all vehicle costs (fuel, maintenance, insurance, depreciation) and deduct the percentage used for business.
Equipment: Every tool and piece of equipment you buy is deductible. Bought a new commercial-grade vacuum for $600? Deductible. Upgraded to a better mop system? Deductible. Need a portable steamer or a better caddy for your supplies? All deductible.
The Golden Rule:
To claim a deduction, the expense must be “ordinary and necessary” for your business. Keep receipts, note what each purchase was for, and when in doubt, ask your accountant. The key is documenting everything and being honest about what’s truly business-related versus personal.
Simple Record Keeping
You need to track three things: income (every payment from every client), expenses (every business purchase with receipts), and mileage (if you’re using your vehicle).
At this stage, keep it simple. Use a notebook or an online notes app to record:
- Date and amount of each payment received
- Date, amount, and description of each expense
- Daily mileage for business trips (keep a notebook and envelope for receipts in the glove box)
As your business grows, you can upgrade to spreadsheets or accounting software, but for now, a simple notebook gets you started without any barriers.
Opening a Business Bank Account
Open a separate business bank account is important for any new business. It keeps your personal and business finances separate, making tax time much simpler.
Many banks now offer free online business accounts for sole proprietors. Do some research to find one with no monthly fees. Sometimes these are listed as account for online entrepreneurs – businesses that don’t need traditional cheque cashing services etc.
Your Quick Setup Checklist
Before you book your first paying client, these are the main things to consider. They can usually all be done in a single afternoon.
Week 1 – Foundation: Choose your business name, decide on sole proprietor structure, register your business name if needed, and apply for any required business licenses or permits.
Week 2 – Protection: Get liability insurance quotes from at least three providers, purchase your insurance policy, open your business bank account, and set up your basic record-keeping system.
Week 3 – Financial Framework: Get online and research local tax obligations, create a system for tracking mileage if using your vehicle, set up a method for storing receipts (digital or physical), and clarify what quarterly payments or registrations you might need.
Week 4 – Ready to Launch: Confirm all registrations are complete, have your insurance documentation ready to show clients, set up your website through MaidHost, and establish your system for invoicing or accepting payments (Tip: MaidHost can also help you set that up).
Total time investment: 2-4 hours Total financial investment: typically $100-$300 depending on your location.
What If You Want to Start Immediately?
If you have a potential client ready to book tomorrow and you haven’t completed all these steps yet, here’s the practical truth: you can start, but be smart about it.
The absolute minimum requirements before your first paid job are insurance (get at least a basic liability policy – many insurers can provide coverage within 24-48 hours), basic tracking (have some method to record the income and keep receipts, even if it’s just a notebook), and a written agreement (even a simple written description of what you’ll clean, how much you’ll charge, and when payment is due).
Then, immediately after that first job, begin the proper registration process. Don’t skip the legal stuff – it genuinely only takes a few hours to set up properly, and doing it right protects both you and your growing business.
Key Takeaways
- Starting a cleaning business legally is genuinely straightforward – you could actually complete everything in a single afternoon.
- The sole proprietor structure is perfect for new cleaners: simple, inexpensive, and easy to manage.
- Insurance is essential for both protection and professional credibility.
- In most regions, you need minimal licensing beyond basic business registration. Your main job is researching your specific local requirements, which takes about 30 minutes of focused online research.
- Business expenses are tax-deductible, including supplies, equipment, vehicle costs, professional development, and even industry conferences in interesting locations.
- Track everything from day one using a simple notebook or notes app.
- Open a separate business bank account—many banks offer free accounts for sole proprietors.
- When in doubt, invest an hour with a local accountant.
Most countries make self-employment remarkably accessible. As long as you keep good records of your income and expenses, maintain proper insurance, and register appropriately in your local area, you’re operating as a legitimate business owner. The paperwork takes an afternoon, then you can focus on actually building your business and serving clients.