Are you having a hard time deciding if you need a license to start a cleaning venture and how you should go about it? Here is a complete guide on how to secure a cleaning business licence alongside every other information you need to know about the legal business document.
Are you aware that cleaning business is among the most lucrative businesses anyone can operate and make quite a lot of money? If done legally (with all the licenses and permits) and with the right strategies, the business can be a permanent stream of income.
Do you have it at heart to start a commercial cleaning business in Florida and other states in the United States? Have you been pondering on the possibility of establishing a firm where you offer high quality cleaning services to clients for profits?
Whether you intend operating it as a commercial or residential cleaning business, this type of business has government-established binding rules and regulations that you must abide by. Just like every other business out there.
The essence of such binding rules and regulations (i.e laws), is to enable the government to fully recognize and monitor the activities of businesses within its territory.
Through such laws, the citizens are protected by the government from fraudulent activities while the business owners are given the freedom to maximize their potentials.
Do You Need a License to Start a Cleaning Business?
The answer to that question depends on certain factors. One is the location of the business. In some places, the state or local government may not necessarily require you to be licensed before you can operate your business. In some other places, you can’t be allowed to start a cleaning business without having all the necessary licenses and permits. That is why it is very advisable you visit the local government office of the area where you hope to establish your business and find out if you need a license to start it or not.
Another very important factor that contributes to that decision is the nature of the business and its method of operation.
How do you want intend to run the business? Is it as a sole proprietorship, limited partnership or a corporation? Your answer to that question can go a long way to determine if you must get a license for it or not.
Depending on your local government, you may or may not be required to get a license for it due to the nature of the business and how you hope to operate.
However, if you are going to run it as a real business that will last for more than 6 months and employ as many people as possible, you’d definitely need to be licensed.
Failure to obtain a valid license for your cleaning business could attract a lot of penalties if discovered. You may end up spending more than the licence would have cost you. You could even end up in jail for that in some states.
A business licence gives you the legal right to operate your business anywhere without fear. It also gives you the opportunity to easily access government grants, loans, business insurance, open a business account and so on.
Without it, you cannot really take on major cleaning contracts as it will be very difficult for well established companies and individual clients to do business with you.
You will also end up spending more to get supplies and equipments which you need to fully operate your business.
At the end of the day, your goal of setting up the business which is to make profits would not have been achieved.
Types of License For A Cleaning Business
Before you start your cleaning business, there are two major types of business license you need to have. The first is a “Doing Business As (DBA)” registration certificate. The second is a Vendor’s License. These are two important licenses you need to establish your cleaning business.
To help you understand their importance better, I will explain the both of them below.
Doing Business As (DBA)
A “Doing Business As” registration allows you to register a trade name for your business. For instance your name is Matthew Cake but you want your cleaning business to go by the trade name “Empire Cleaning Services.” You will have to register “Empire Cleaning Services” as the trade name of your business with your county, city or state.
The name also allows you to open a business bank account using “Empire Cleaning Services” as your business account name.
Without the DBA registration, your cleaning business will face a lot of challenges especially from the government that will may lead to its end if something is done fast about it.
A vendor’s license allows you to sell or offer goods and services on any public street, sidewalk and so on. In most states in the United States, it is actually against the law for you to establish a business without one.
There are two types of vendors license business owners are required to apply. The first is the Fixed Location License while the second is the Transient Licence.
The Fixed Location License is meant for people who want to sell or offer a particular service from one non-movable location.
Before you are given this license, you will be required to produce proof of ownership or rent of the property in that location you want to use.
The Transient License is given to those who want to sell or offer a particular service from one place to the other using a mobile store, truck, or van.
As long as you have no fixed place of business, this is the type of vendors license you should go for. For a cleaning business, the first option is what you should go for.
Kindly note that before you are given the license, you will be required to present your DBA license first.
Other licenses and permits which you may be required to get depending on your location includes:
- Service Contractor’s Licence
- Federal Tax ID Number
- Insurance etc.
How To Apply For A Cleaning Business License
From the beginning of this article, we have already established the importance of getting all the required licenses for your cleaning business before you start.
Without having those necessary documents, your business will be considered illegal. Once discovered, the penalties that will come your way may end up crumbling the business entirely.
Are you brainstorming on how to apply for your cleaning business license? Follow the procedures below to do it.
For “Doing Business As” Certificate
The processes involved in applying or registering a DBA name slightly differs from state to state. In some states, you may be required to place an ad with the name you want to register for some time before you can fully register the name.
Some states require you to visit their website and do the whole registration online. For such states, every payment must also be made online using your credit or debit card.
In some states you are required to download the form online, print it out and fill it. After that, you are to proceed to the DBA office and submit it. There you will be required to pay a certain amount of money before the whole thing can be processed. Within a few days or weeks, you will be called upon to collect your certificate.
For Vendor’s Cleaning Licence
For the vendors license, you will have to begin by choosing the appropriate license-type for your business: the fixed location license or the transient license.
Then proceed to your country’s website for vendor’s license application and apply for it directly on the website, you can also download the form, print it out and fill it offline.
Another way you can do that is by visiting your country clerk’s office directly and getting the forms from there. You may also be required to pay the fees there or to walk into a bank and make the payment. Depending on your state and your application process, you may be required to make the payments online as well.
Cost Of Cleaning Business Licence
Cleaning business license fees differs from state to state and from one local government to another. In some places, the fees can be below $50 while at other places it could cost up a thousand dollar.
The only way to find out how much it will cost in your location is by visiting the official website of your state or local government, or by physically visiting their offices.
Getting a cleaning business license is the very first thing you should do before starting your business. Regardless of your location and how you plan to operate, getting the business fully licensed is always the wisest thing to do.
It will not only save you from a lot of trouble with the law, it will also help you maximize the potentials of your business and make so much profits from it.
Have you been searching for how to get a license for your cleaning business? I hope you find this content useful.