Starting a cleaning business in Texas
Texas has no statewide occupational license for house or office cleaning, which is one reason so many cleaning businesses start here. What Texas does require is that you register the business correctly, handle sales tax on the services that are taxable, and carry the insurance your commercial customers will ask for before they sign anything. The metro markets below are where CleanBucks is currently placing operators.
Texas markets we cover
Texas requirements to know
No state cleaning license
Texas does not issue an occupational license specifically for residential or commercial cleaning. Your obligations are business registration, tax, insurance and employment compliance rather than a trade license.
Sales tax on commercial cleaning
The Texas Comptroller treats nonresidential building cleaning as a taxable real property service. Residential house cleaning is generally not taxable. Getting this wrong on commercial contracts is one of the more common early mistakes.
Employees versus contractors
Misclassifying cleaners as contractors is heavily scrutinized. If you control the schedule, the method and the supplies, expect the relationship to be treated as employment.
Texas startup checklist
- 1
Register your business entity
Form an LLC or file an assumed name with the Texas Secretary of State or your county clerk, depending on structure. Get an EIN from the IRS.
- 2
Texas sales tax permit
Nonresidential (commercial) cleaning is a taxable service in Texas; residential house cleaning generally is not. Register with the Texas Comptroller and confirm which of your services are taxable.
- 3
General liability insurance
Most commercial accounts require a certificate of insurance before your first clean. Janitorial bonding is commonly requested too.
- 4
Workers' compensation decision
Texas does not require most private employers to carry workers' compensation, but going without it changes your legal exposure. Talk to an agent before you hire.
- 5
Vehicle and equipment
Reliable transportation, commercial auto coverage if the vehicle is titled to the business, and a starter equipment and supply kit.
- 6
Local city requirements
Some Texas cities require a general business registration or a home-occupation permit. Check with the city where you are based.
Requirements vary by location and business structure. This information is educational and is not legal, tax or financial advice. Verify requirements with the appropriate government agencies and qualified professionals.