Texas markets

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, collect sales tax on cleaning work, which Texas treats as a taxable service, 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 building cleaning and janitorial services as a taxable real property service, for homes as well as commercial buildings, when the work is billed by a business. The narrow exception is a self-employed person working as a direct household employee. Getting this wrong 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. 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. 2

    Texas sales tax permit

    Texas treats building cleaning and janitorial work as a taxable real property service, and that covers residential as well as commercial cleaning billed by a business. Get a sales tax permit from the Texas Comptroller and confirm your own situation with them.

  3. 3

    General liability insurance

    Most commercial accounts require a certificate of insurance before your first clean. Janitorial bonding is commonly requested too.

  4. 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. 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. 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. Confirm current requirements with the appropriate state agency and with your own attorney or accountant before you start.