How to Start a Cleaning Business in California

Thinking about starting an LLC in California? We’ve got all the details you need.

Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the California State Corporation Commission, which includes a $100 processing fee.

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized California LLC formation service (recommended).

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What You Need to Know About Cleaning Businesses in California

Cleaning businesses are popular in California, and for good reason. As a tourist destination, there are plenty of commercial opportunities in places like hotels and restaurants, and a large population makes visiting homes for residential cleaning viable. That said, there is a lot to learn when starting a cleaning business in California. It’s more complex than just buying a mop and going door-to-door. Plus, you’ll soon discover that the profit margins and low cost of starting a cleaning business in California make it appealing for anyone who wants to enter the market.

Learn more about the details of a cleaning business below.

What Are the Types of Cleaning Businesses in California?

Cleaning businesses in California come in two variations, each with their own niche options. The most common cleaning businesses are residential and commercial cleaning companies.

The biggest difference between the two options is that residential cleaning businesses visit houses and work for individuals, while commercial cleaning businesses work in office spaces, malls, and other large areas. Both options are viable, but we recommend specializing in one market when starting out. This ensures that you don’t spend too much money on different equipment.

You can always change who you serve and how your operation runs later, so we recommend focusing on getting off the ground before anything else.

How Much Does it Cost to Start a Cleaning Business in California?

A cleaning business in California will cost you around $2,000 to $10,000 to start. Several factors influence the cost, so you need to focus on location, the equipment you need to buy, and the workers you need to hire. Also, starting a commercial business license may impact the cost because you’ll need better equipment to start the business.

While the state of California doesn’t require a business license, you’ll need to apply for one in the city you plan on working in. A business license will cost around $50 to $200, depending on the city you operate in. Additionally, you should consider the cost of transportation. Will you have vehicles to transport yourself or your employees? Or partner with a ride-share company? This will also impact the price.

9 Steps to Help You to Start a Cleaning Business in California

Starting a cleaning business in California isn’t hard, but you need to follow a handful of steps to achieve the best results. Some of the steps we cover will include important legal aspects of the business, but we’ll also take you through some ways to market and plan your cleaning business. Learn more about how to start a cleaning business in California below.

Step 1: Come Up with a Plan

When starting a cleaning business in California, you need a plan to get it off the ground. The plan is important for you and the city you plan on operating in, so make sure it outlines what your company does well. You also need to include details about your company, such as the services you offer, its structure, and how you plan on growing your client base.

When creating a plan, you need to choose whether you want to offer residential cleaning services, commercial services, or a combination of both. You also need to disclose the company’s structure and marketing plans and provide an Executive Summary—a general description of your operation.

Overall, make sure you include the following:

• Sales plan
• Marketing plan
• Executive Summary
• Financial plan and goals
• Estimated income and how you’ll obtain that
• Where you will operate
• People involved with the company
• Operational plans, properties, and assets
• The type of cleaning services you offer

This is only some of the information you should include in a business plan for a cleaning business in California. Consider adding additional information to better help you plan the process of starting a business, or consider working with a professional.

Step 2: Register Your Business

Once you have an outline of your business model, it’s time to begin the regulation process. First, check if the name is taken on the Secretary of State’s website. If the name is available, register your company’s name and purchase any domains associated with the account. When registering your business, you must also provide personal information about yourself. This includes your name, contact information, and address if you own the company. If you’re forming a corporation or an LLC, you must provide information about board members, owners, and other staff members. You’ll also need a registered agent if you go the LLC route.

That said, when starting a cleaning business in California, you have options. These include:

• Sole proprietorship or partnership: Single or multiple-owner business without liability protection; you need a business license to complete your registration
• Limited liability company (LLC): A company that has liability protection; you need to file Articles of Organization to start your business
• Doing business as (DBA): You need a business license to fill out a fictitious name form and pay associated fees
• Corporation: The foundation for a large cleaning business operation; you need to file Articles of Incorporation to register your business

The cost will vary depending on the type of business you’re starting. LLCs and corporations will cost a few hundred dollars to start property, whereas a sole proprietorship, partnership, or DBA will be more affordable.

That said, we always recommend an LLC if you want to start a commercial cleaning company because most offices and commercial buildings won’t work with you without liability protection. On the other hand, you can likely get away with a sole proprietorship or partnership for residential cleaning operations. We can also help you register your cleaning business in California if you encounter any issues.

Step 3: Choose a Registered Agent in California

If you’ve opted to form your business as an LLC or corporation in California, the next crucial step is to designate a registered agent. This is an essential requirement when preparing your Articles of Organization, the document needed to officially register your LLC or corporation with the California Secretary of State.

So, what exactly is a registered agent? A registered agent is an individual or entity appointed to handle important documents on behalf of your business, including tax forms, legal notices, lawsuits, and official government correspondence. In essence, the registered agent acts as the primary contact point between your business and the state.

Who can qualify as a registered agent? The registered agent must either be a California resident or a corporation authorized to do business in the state, such as a registered agent service. If you wish to serve as your own registered agent, you’ll need to designate an individual within your company, as California law does not allow business entities to act as their own registered agents.

For additional details on the requirements for registered agents in California, consult the California Corporations Code.

Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).

Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.

Apply Online

Step 4: Get the Necessary Permits and Licenses

California doesn’t require businesses to have a license, but that doesn’t mean you don’t need one. Most businesses need at least a general license that allows them to sell their goods or services in a specific county. Other types of licenses may also be required if you plan on transporting toxic materials or need to dump your garbage in certain locations. You also need to visit irs.gov and apply for an EIN. However, you can use your Social Security number if you’re just getting started.

That said, some other licenses include:

• Fire code permits
• Hazardous waste disclosure licenses
• Wastewater discharge permit
• An EPA identification number for the state
• Registration forms for employees

Depending on the nature of your cleaning business, you may need more licenses, especially if you’re cleaning up something like a nuclear power plant. Additionally, you may also need some federal licenses if you work on government property that’s not owned by the state. Thankfully, we can help you determine what cleaning business licenses you need.

Step 5: Plan for Health and Safety

When running a cleaning business in California, health and safety need to be one of your top priorities. The state requires you to have an Injury and Illness Prevention Plan, which you can learn more about at the Division of Occupational Health & Safety’s website. This is something that all cleaning businesses in California have to participate in to avoid running into problems.

Planning for health and safety is also something that must be done at the federal level. Plenty of federal laws are also in place to regulate how you protect your employees and the spaces that you clean. You should always consider the following:

• Masks
• Goggles
• Foot protection
• Gloves
• Any toxic or harmful substances that you work with
• Headwear
• Protective clothing

You can also learn more about what to consider at OSHA’s website.

Step 6: Purchase Cleaning Supplies and Equipment

When you start a cleaning business in California, you need supplies to get the job done. These can range from mops to vehicles that transport your supplies. For this reason, you need to spend some time considering the type of business you have and the type of cleaning you want to offer.

You also need to price this equipment out because a residential vacuum is much cheaper than a ride-on cleaning machine for office buildings or malls. Some common cleaning supplies to purchase when you start include:

• Vacuums
• Brooms
• Microfiber cloths
• Mops
• Garbage bags
• Towels
• Commercial vacuums
• Spray bottles
• Cleaning chemicals
• Gloves

Depending on how many people work for you and how you plan to get around, you also have to purchase vehicles. Older cars and trucks can work when starting out, but as you grow into commercial work, you might want to invest in a van or truck with your branding.

Step 7: Insure Your Cleaning Business

Insurance is important for more than your health and car. Businesses need insurance to protect assets and make it easier to protect your company in the event of a lawsuit. There are many types of business insurance to consider, but some good options for a cleaning business include:

• General liability insurance
• Worker’s compensation insurance
• Commercial property insurance
• Vehicle insurance for cleaning vehicles
• Insurance for expensive cleaning machines and hardware

Ultimately, the type of insurance you choose depends on your industry. There are many options, so make sure you speak with an insurance consultant to find the best fit for your cleaning business. We always recommend starting with general liability to avoid any issues with lawsuits when you start out. Then, you can improve from there.

Step 8: Contracts, Policy, and Protections for Your Company

One thing you need to take seriously is how your policies, contracts, and protections work. When you’re going to someone else’s business or property to clean it, you need to have what you will do outlined properly to avoid confusion. What’s more, you want to keep yourself and your people safe in case you run into an incident.

The most important information to include in your contact includes:

• How the cleaning products will be used and purchased
• Any requirements you have for how a building or home must be heated or cooled during the cleaning process
• How unsupervised pets and children should be handled if you’re doing residential cleaning
• Rules for operating cleaning equipment
• How doors and calls should be answered if a cleaner is at the location unsupervised
• Information sharing guidelines

Depending on your business, you can include some, more, or none of this information in your contract. These are only some examples to help you draft a contract that can protect your company.

Step 9: Marketing and Advertising

Once your cleaning business is off the ground, you can begin marketing and advertising your operation. You can rely on people spreading the word about your company on Facebook and other social media platforms, but we recommend taking a more active role in this process. You could create your own website, work with someone to run Google advertisements or search engine optimization, and place flyers in your area.

Some other ways you can market your cleaning business include:

• Sending emails to companies for commercial cleanings
• Going door-to-door in your neighborhood
• Building social media pages for your company
• Asking people to review your cleaning company on Yelp and Google
• Sending out flyers in the mail to the businesses in your area

When you do start to advertise, be careful about how you word things. We recommend against providing anything for free or at a discounted rate when you start because you have to word this properly, or you can be sued. It’s a good idea to work with a lawyer when you’re developing your marketing materials.

Cleaning Business California FAQ

Do you have questions about getting started with your cleaning business in California? Below are the most commonly asked questions about the industry.

What Is the Hourly Rate for House Cleaning in California?

The hourly rate for a house cleaning depends on the size of the company, how many people are needed for the cleaning, and several other factors. Sources like Care.com and ZipRecruiter suggest that the average rate is between $18 and $22 per hour. Locations with higher living costs, like Los Angeles, can also increase the price to more than $25 per hour.

If you plan on hiring someone to clean for you, make sure you pay them a salary that’s slightly less than the going rate so that you can make some money. Otherwise, you’re just a middleman wasting time and money.

What’s the Hourly Rate for Commercial Cleaning in California?

Commercial and residential cleaning don’t differ much in hourly rate. What does change is the number of people working on the job and the equipment used for cleaning. Depending on the type of commercial cleaning, expect to pay between $50 and $100 per hour. There may also be flat rates that range from $200 to $800.

Commercial cleaning also has other niches, like construction cleaning, which can cost $30-$50 per hour per cleaner or up to $800 for a flat fee. You need to consider these costs before selling your services because you don’t want to send two people and only get paid for one.

Is a Cleaning Business Profitable in the USA?

Yes, a cleaning business is profitable in the USA and California. Ultimately, a business is what you make of it, so the profit margins are up to you. Plus, the market for cleaning businesses is growing and is expected to reach $40 billion by 2025. Since California is a large part of the US economy and a go-to tourist and residential destination, there is plenty of opportunity to start a cleaning business there. Just make sure you consider the upfront costs and the initial investment that you have to make.

How Can I Start a Cleaning Business Online?

Starting a cleaning business online is likely easier than you think. Plenty of government websites will help you get started, and we offer plenty of resources to help you start a cleaning business in California. You can apply for your business license online in some cities and register your business online with the right resources. Domains and other online platforms are also available to help you market and sell your services, so you can use the internet to help well after you start.

What’s the Best Type of Cleaning Business to Start in California?

The best type of cleaning business to start in California is a residential or commercial cleaning business that deals with houses, office spaces, and tourist locations. Gyms and other spaces are also great cleaning businesses to start and require daily cleaning.

Ultimately, the best type of cleaning business to start in California depends on your goals and how you plan on helping people live a cleaner life. Plus, some cleaning businesses will work better than others for some people, so it’s more about perspective. Profit-wise, residential and commercial cleaning are close, so keep that in mind.

Start a Cleaning Business Today

A cleaning business is a great way to generate revenue if you want to make a little extra coin. However, you need to have a plan and go about the process properly. You should also avoid jumping the gun and specialize in home or commercial cleaning, not both because it will help you allocate your resources properly the first time.

When starting a cleaning business in California, make sure you apply for any licenses you need, especially if you’re transporting chemical waste or other hazardous materials. This doesn’t apply to most companies, but as you grow, it can become something to keep in mind.

While the process seems overwhelming at first, as long as you follow all of our steps on how to start a cleaning business in California, you should have no issues.