How to Start a Cleaning Business in California

October 29, 2026

Starting a cleaning business in California is one of the more accessible ways to launch a company, but the paperwork is not optional. How to start a cleaning business in California depends on what you clean. Residential house cleaning and commercial janitorial work follow different rules, and the commercial side brings a state registration that many new owners miss. This guide covers the steps in the order most owners handle them, with the fees and deadlines the agencies publish.

Disclaimer: This article is informational content, not legal or tax advice. Rules and fees change. Where an answer depends on your exact situation, this guide tells you to check with the agency named. For complex questions, talk with a qualified attorney or CPA before you file.

What You Need Before You File

Gather these items before you start the filings. This guide does not assign costs to equipment or supplies. Get written quotes from suppliers for each item on your list.

• A business name you have checked for availability and for prohibited words
• A principal office address and a California registered agent for service of process
• A written list of services, such as residential cleaning, commercial janitorial work, post-construction final cleanup, or other services (window and pressure cleaning have their own rules and are covered separately)
• Equipment and supplies: vacuums, mops, buckets, caddies, ladders, microfiber cloths, and cleaning products
• A plan for how you will pay workers, if you plan to hire any
• Access to a computer for bizfile Online and the CDTFA online system
• Insurance quotes from a licensed agent

Step 1: Choose Your Business Structure

Your first decision is whether to operate as a sole proprietor or form an entity. Many one-person house cleaners start as sole proprietors and file a fictitious business name only if they operate under a name other than their own. An LLC separates your personal assets from business obligations, but it adds state fees and yearly filings. A corporation is an option, but most small cleaning companies do not need one, and the tax effects deserve a CPA's review.

LLC costs and deadlines

• Articles of Organization (Form LLC-1): $70 filing fee with the California Secretary of State.
• Statement of Information (Form LLC-12): $20, due within 90 days of filing the articles, then every two years during the six-month window ending on the last day of the anniversary month. The Franchise Tax Board assesses a $250 penalty after a Secretary of State notice if the statement is missed.
• Franchise tax: An LLC organized or registered in California from 2024 to 2026 owes the $800 minimum annual franchise tax from its first year. An LLC whose first taxable year begins from 2027 to 2029 pays $400 in year one under Revenue and Taxation Code section 17941(g)(2), so confirm that figure with the FTB.
• LLC fee: Once California-source total income reaches $250,000, $500,000, $1,000,000 or $5,000,000, the LLC also owes a fee of $900, $2,500, $6,000 or $11,790, respectively. Estimate your income against these tiers with a CPA.

A corporation files Articles of Incorporation for $100 and then a Statement of Information (Form SI-550) for $25 every year. A newly incorporated or qualified corporation or S corporation owes no $800 minimum in its first taxable year. Corporate income tax is 8.84% (10.84% for banks), and S corporations pay 1.5% of net income with an $800 minimum. Confirm these rules with a CPA before you elect a structure.

Step 2: Check and Reserve Your Name

Search the bizfile business search before you commit to a name. An LLC name must contain 'limited liability company,' 'L.L.C.,' or 'LLC.' 'Limited' may be shortened to 'Ltd.' and 'company' to 'Co.' The name may not contain 'bank,' 'trust,' 'trustee,' 'incorporated,' 'inc.,' 'corporation,' or 'corp.' That rule catches more names than new owners expect. A name like 'Bright Trust Cleaning' would be rejected, for example.

To hold a name while you prepare filings, you can reserve it for $10. A reservation lasts 60 days and is not renewable for consecutive periods. Check the name availability page for current rules.

Step 3: File Your Formation Documents

File Articles of Organization through bizfile Online. Online filings are normally processed within about 5 business days or less. Paper filings take 10 or more business days. If you need speed, the Secretary of State offers expedited options: 24-hour processing for $350, same-day processing for $750 if received by 9:30 a.m., and 4-hour drop-off processing for $500, which requires precleared filing.

Your LLC must keep an agent for service of process in California. That agent is either an individual who lives in California or a corporation that holds a Corporations Code section 1505 certificate. The LLC must also keep an office in California, although it does not have to be a place where business activity happens. Many owners use a registered agent service for this role, and the cost varies, so compare providers and confirm what each one includes.

Step 4: Register a Fictitious Business Name If Needed

If your cleaning company uses a name that does not match your legal name or your LLC's name, file a Fictitious Business Name Statement. You file it with the county clerk-recorder in the county where your principal place of business is located, or in Sacramento County if you have no place of business in California.

• Timing: File within 40 days of starting to do business under the name.
• Publication: Publish the statement in a newspaper once a week for four weeks. The publication fee is separate from the filing fee.
• Filing fee: The statutory fee is $10 plus $2 for each additional name or owner under Business and Professions Code section 17929. Counties charge more. For example, Tehama County charges $31 plus $5 for each additional name. Check your county's current fee.
• Expiration: The statement expires after five years, so calendar the renewal.

Start with the Secretary of State's fictitious business names guidance, then confirm the county forms and fees with your county clerk-recorder.

Step 5: Register for a Seller's Permit If You Sell Products

California does not charge a fee for a seller's permit from the California Department of Tax and Fee Administration (CDTFA). You need one if you sell taxable goods, such as cleaning products you sell to customers. Cleaning labor is generally not subject to sales tax, but the rules for mixed charges, where a customer pays for both supplies and labor on one invoice, can be tricky. Check with the CDTFA before you bill that way.

The statewide base sales tax rate is 7.25%. With district taxes, city rates run from 7.25% to 11.75%, so the rate depends on where a sale occurs. When you buy products to resell, you can use a resale certificate, and there is no required form. Learn more on the CDTFA sales and use tax page.

Step 6: Check Your City and County Requirements

California has no general statewide business license. The Secretary of State issues no business licenses, and the CDTFA seller's permit is not a business license. Your local requirements come from your city and, in limited cases, your county.

Most cities charge a local business tax or require a registration certificate. In fact, 445 of California's 483 cities report revenue from one. There is no common formula, so the amount and the rules depend on the city where you operate. Counties license only regulated activities. Contact your city's business license or finance office before you take your first job, and ask whether the rule applies to home-based work if you clean out of your own residence.

Some cleaning work can cross into construction. The contractor license threshold is $1,000, so if your jobs include repair, remodeling, or other construction work above that threshold, check with the Contractors State License Board before you bid. Routine cleaning is not the same as contracting work, but the line can blur on a post-construction job.

Step 7: Determine Whether You Must Register as a Janitorial Services Company

This is the California-specific requirement that most cleaning businesses need to understand. Janitorial registration is governed by Labor Code sections 1420 to 1434. The registration is administered by the Labor Commissioner through the Division of Labor Standards Enforcement, part of the Department of Industrial Relations (DIR). Anyone searching for california janitorial services registration DIR information will find the same agency.

Who counts as a covered worker

A covered worker is a janitor, meaning someone who predominantly works as a janitor. That includes employees, independent contractors, and franchisees. The term follows the federal Service Contract Act Directory of Occupations (Labor Code section 1420). Workers whose duties are predominantly final cleanup of debris, grounds, and buildings near the end of a construction, demolition, or repair project are excluded. Whether your post-construction work falls under that exclusion is a question to check with the Labor Commissioner.

Who counts as an employer

An employer is anyone who employs at least one covered worker, or who engages janitorial services by contract, subcontract, or franchise agreement (Labor Code section 1420(g)). A business that merely receives cleaning services is not an employer under that definition. If you run a cleaning company and subcontract part of your work, you may fall within the definition. Ask the Labor Commissioner to confirm your status.

Two registration types

The law provides one type of registration for employers with employees and another for registrants with no employees (Labor Code section 1425). Choose the right type based on your current staffing, and update your status when you hire or stop hiring.

Fees

The Division of Labor Standards Enforcement collects an initial application fee of $500, which is non-refundable, and an annual fee of $500 on the anniversary of the application (Labor Code section 1427). The Division may adjust those fees. Confirm the current amounts with the Labor Commissioner before you submit payment.

Ongoing obligations

• Records: Keep records for three years, including names, hours, wage rates, and compensation paid to other covered workers (Labor Code section 1421).
• Training: Registered employers owe in-person sexual violence and harassment prevention training every two years (Labor Code section 1429.5).
• Successor liability: If you buy an existing janitorial business, a covered successor employer can inherit obligations (Labor Code section 1434). Ask about the seller's registration status before any purchase.

Solo residential cleaners

Whether a sole residential house cleaner with no employees must register is unclear, so check with the Labor Commissioner. The registration is aimed at janitorial work, and the line blurs once you bring in a helper, even for a single job. If you plan to hire anyone, plan to register.

Step 8: Classify Your Workers Correctly

California presumes that a worker is an employee unless the hiring business proves the ABC test (Labor Code section 2775). The business-to-business exemption in Labor Code section 2776 requires, among other things, a written contract, the provider's own license or tax registration where required, a separate business location, and an independently established business. Cleaning crews are usually treated as employees, and a worker who cleans on your schedule, with your equipment, under your supervision is hard to classify as independent. Get legal advice before you use contractors.

Step 9: Meet Your Employer Obligations

Register with the Employment Development Department (EDD) once you have employees. Then build your payroll process around these requirements.

• Minimum wage: The state minimum wage is $16.90 in 2026 and $17.40 starting January 1, 2027. This figure comes from a secondary source, so verify it on an official state page before you set pay.
• Workers' compensation: Workers' compensation coverage is required for any employee (Labor Code section 3700). Knowingly failing to carry it is a misdemeanor with a fine of at least $10,000 and up to double the premium you would have paid, plus up to a year in jail. The Labor Commissioner can also issue a stop order and assess $1,500 per employee (Labor Code sections 3700.5 and 3722). The $10,000 figure is the criminal minimum, not the point where administrative penalties begin.

Get workers' compensation quotes from carriers before you hire. Premiums depend on your payroll, job classes, and claims history, so do not budget from a rule of thumb.

Step 10: Buy the Right Insurance

California law does not require general liability insurance for a cleaning business. Commercial customers, property managers, and building owners often require it, along with a certificate of insurance naming them as additional insureds. If you have employees, workers' compensation is mandatory. Some commercial clients also ask about bonds or other coverage. Ask your agent what each client requires before you bid, and get written quotes from several agents. This guide does not quote premiums or bond amounts because they vary widely by company.

Expected Results

Following these steps may help you open a properly registered business that commercial clients can review and approve. It may also make it easier to open a bank account, hire staff, and bid on work that requires documentation. Results depend on your location, pricing, services, and marketing, so no outcome is guaranteed.

Cleaning claims also need care. Describe your work in terms that match the product label's directions. Avoid promising that a service removes germs, prevents illness, or meets a specific health standard unless the product label and your service plan support that claim, and confirm any such claim with the product's manufacturer.

Common Mistakes to Avoid

• Skipping the janitorial registration review. Many owners assume a cleaning business is exempt without checking. Confirm with the Labor Commissioner before your first commercial job.
• Treating a cleaning crew as contractors. Misclassification creates tax, wage, and workers' compensation exposure. Get the ABC test and the Labor Code section 2776 analysis reviewed before you sign agreements.
• Using a prohibited word in an LLC name. Words like 'trust' or 'inc.' can cause a rejected filing.
• Missing the 40-day DBA deadline. File within 40 days of starting to use the name, and calendar the five-year expiration.
• Forgetting the $800 franchise tax. An LLC owes it from its first year, so include it in your startup budget.
• Assuming no local license is needed. Most cities charge a business tax or registration fee, so check before you advertise.
• Hiring without workers' compensation. The penalties start at a $10,000 criminal minimum, and the Labor Commissioner can issue a stop order.
• Missing the Statement of Information. An LLC must file within 90 days of formation, then every two years. Missing it can bring a $250 penalty.

Your Compliance Calendar

• Within 40 days of starting under a fictitious name: file the Fictitious Business Name Statement and publish it.
• Within 90 days of forming an LLC: file the first Statement of Information (LLC-12).
• Every two years: file the LLC-12 during the six-month window ending on the anniversary month.
• Every five years: renew the fictitious business name.
• Each year on the janitorial registration anniversary: pay the annual fee, confirmed with the Labor Commissioner.
• Every two years for registered employers: complete in-person sexual violence and harassment prevention training.
• Every year: confirm your local business tax or registration certificate with your city.

Next Steps

Start with the name check, then file your entity or fictitious business name, then confirm your janitorial registration status before you take commercial work. Sort out your city requirements and insurance before you advertise, and talk with a CPA about structure and tax. A qualified attorney can review worker classification and any successor or contract questions.

This article is informational content, not legal or tax advice. Confirm every fee, deadline, and requirement with the agency named before you act on it.