MoneyLife

Do I Need a License to Clean Houses? 

By Cameron Walch
Do I Need a License to Clean Houses

Whether you are looking to start your own business or are interested in helping an existing business clean its clients’ houses, you need to understand the legal requirements of doing so. Almost every house cleaning company out there has some sort of license. 

Their licenses can either be granted through the state or the county in which they work, but either way, there is often a license involved. So, including getting a license, what are the requirements of starting your own home cleaning business? Let’s find out! 

Is a cleaning license required?

According to Upcounsel, you will need two different types of licensing, including a vendor’s license and a Doing Business As (DBA) trade name registration. It might also be helpful to file your business with the state and become a Limited Liability Company (LLC) for liability purposes.

The importance of licensing and bonding for house cleaning  

Let’s take a look at an example where there are two different house cleaning companies that a client is considering, and both companies charge the same price. The only difference is that one of the companies is licensed as an LLC while the other one is not. 

Which one would you rather hire to clean your house? Most people would go with the company that has been registered as an LLC and has acquired their related licenses. As such, securing your licenses as a house cleaning business would improve your standing in the eyes of prospective clients. 

Bonding is also important because it provides your clients with a guarantee that your services will be completed in accordance with your contract. There are a few different types of bonds, including performance bonds, bid bonds, indemnity bonds, and payment bonds.

A performance bond ensures that the job will be done per the contract. A bid bond makes sure that the job at hand will be completed if you win the bid. 

Indemnity bonds refer to the required repayment of losses that you’ll owe if the job is not completed. Last but not least, payment bonds are a promise you make to pay all of your subcontractors. 

How to start a house cleaning business

Starting a business may sound difficult and frustrating, which it can be, but we are here to make it a lot easier for you. Taking one massive project and dividing it into smaller steps makes it seem much more feasible and attainable, and starting a business is no different! 

Start off small

Friends and family are there to support you at all times, but especially when you’re doing something you’ve never done before, like starting your own business. Anyone who owns a home or lives in an apartment could benefit from a cleaning service, meaning you can start off small by offering your cleaning services to family and friends. 

Entice your friends and family by offering discounts to them. Ask them to leave reviews for your business as well. Reviews are a great way to start expanding your client list. If you do a good job, your family and friends will refer you to their extended families and friends, and there is no better marketing strategy than word-of-mouth referrals. 

Build out your client list

Any type of business will have its own client list. If you do not have clients, then you are not making money, but that’s something you’ll experience when you first open your business. 

But in order to gain clients, you’ll need supplies to perform your house cleaning services. If you don’t have money to put towards your business-related expenses when you first start out as a business owner, you can always use MoneyLion’s Credit Builder Loan to get cash upfront for the supplies you need–plus build you credit score! 

Once you have the necessary supplies, you can start to work for your clients and gain traction. Start with family and friends. Offer discounts, post on social media, hang up local flyers and even go door-to-door around town. Once word gets out about how good your cleaning services are, you will build your client list with ease! 

Create a list of your services

Make a list of your house cleaning services and advertise them in any way you can. From social media and business websites to flyers on community bulletin boards and pamphlets you hand out around town, clarifying what you can offer is key. 

At the end of the day, your goal is to make money by providing cleaning services to those in and around your area. But if nobody knows what your cleaning services entail, then they won’t reach out to hire you, so make your list of services clear. 

Obtain a cleaning license

COVID-19 has thrown a wrench into everything that we do now. As such, it’s important to make sure that your business abides by the new protocols that are in place to protect everyone from the coronavirus outbreak. 

For instance, when you arrive at someone’s house for a cleaning job, make sure you wear your mask and disinfect everything you touch. There could be additional licenses, registration requirements, or qualifications as a result of COVID-19, too, so look into that.

Obtaining a cleaning license that is in accordance with COVID-19 mandates is a process that will vary from one state to the next, but you can usually expect to pay anywhere from $10 to $250 for your cleaning license. 

Register your company as an LLC to reduce liability

Limited liability companies (LLCs) faceless liability than businesses that have not registered as LLCs. As such, registering your company as an LLC is wise. You can file as an LLC through your state, and doing so will cost you anywhere from $60 to $500 on average. Once your company is officially an LLC, you will face less liability overall. 

Protect your company with insurance

Insurance is always required, especially if you employ other people. With insurance, you don’t have to worry if you or your employees break any expensive items in a home that you are cleaning. Instead of having to pay cash to replace the broken item, you can turn to insurance, which could cover the expenses for you.

Build your cleaning brand

Building your brand will take a lot of time and effort. By building your brand, you will help to establish your business as a professional company, and the process will entail coming up with a name for your company and creating a logo that will represent your brand. 

While this is just the tip of the iceberg, you must also figure out what niche you will be part of, like house cleaning. You must be able to answer your clients number one question, which is, “Why should we choose you over your competitor?” and building a solid brand will help you stand out from the crowds. 

Expand your business 

This is where business operations start to become a lot of fun. Plan to grow your business to the point where you will have to outsource your work by hiring other people to assist you. Whether you choose to hire employees or subcontractors is up to you, but expansion is a good sign and it’s something to aspire to. 

You can start by asking yourself questions like, “How can I expand my business?” It all begins with solidifying your brand’s image and growing your company by increasing the number of clients you service.  

Starting creating your business

Getting started is always the hardest part. It is much more difficult to stop a rolling ball than to get the ball to roll in the first place. So, with that logic in mind, if you want to be your own boss and clean houses, then start by obtaining the appropriate licenses. Build your brand and really make a change in your own community.

Clean homes are more important than we all realize, but not everyone has time to clean their living spaces. Offering your services while earning a living for yourself at the same time! Check out MoneyLion to set up a RoarMoney account that will make it easy for you to keep track of your business expenses.

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