By Starting a commercial cleaning business takes less money than most businesses and more organization than most people expect. You do not need a storefront or expensive equipment to begin. You do need the paperwork that commercial buyers check before they let a crew into their building at night, a pricing method that does not lose money, and a plan for finding the first few contracts.
This guide covers the practical steps in order, with notes for both the US and Canada. It links to official sources for every rule. Requirements vary by state, province and city, so treat this as a map and confirm the details locally.
What are the steps to start a commercial cleaning business?
The steps are: choose a structure, register and get tax numbers, check licenses, buy insurance and a bond, set up safety basics, decide your pricing, choose your market, and win the first contracts.
Startup checklist
- Choose a business structure (sole proprietorship, LLC, corporation)
- Register the business name and entity with your state or province
- Get a federal tax ID (EIN in the US, CRA business number in Canada)
- Check city, county and state or provincial license requirements
- Open a business bank account
- Buy general liability insurance
- Set up workers' compensation before your first hire
- Consider a janitorial bond
- Set up chemical safety: labels, safety data sheets, training
- Buy basic equipment and supplies
- Write your pricing method and a proposal template
- Choose your target building types and service area
- Build a simple website and Google Business Profile
- Start outreach for the first contracts
Which business structure should a cleaning company choose?
Most new cleaning companies choose an LLC in the US, or incorporate in Canada, because it separates business debts and lawsuits from personal assets.
The SBA explains the trade-off plainly. With a sole proprietorship, "you can be held personally liable for the debts and obligations of the business." An LLC protects you from personal liability in most instances. For a business that sends people into other companies' buildings, that separation matters. Talk to an accountant about the tax side, which differs between structures.
In Canada, the Government of Canada sets out the options: sole proprietorship or partnership, a federal or provincial corporation, or a cooperative. Registration requirements depend on the structure and the provinces you operate in.
How do you register a cleaning business and get a tax number?
Register your business with your state or province, then get a federal tax number: an EIN from the IRS in the US or a business number from the CRA in Canada.
United States. The SBA says you need an EIN to pay federal taxes, hire employees, open a bank account and apply for business licenses. The application is free. The SBA specifically warns against websites that charge a fee for it. You may also need state tax IDs for payroll withholding and unemployment insurance.
Canada. You will need a CRA business number, and you must register for GST/HST once your taxable sales pass the small supplier threshold. The CRA sets that threshold at $30,000 for most businesses. Registering voluntarily lets you claim input tax credits on your business purchases, so some companies register from the start. Ask your accountant.
What licenses and permits does a commercial cleaning business need?
Most commercial cleaning businesses need a general business license or registration rather than a cleaning-specific license, but the rules depend on your city, county and state or province.
The SBA's licensing guide notes that the licenses you need "will depend on your business activities and business location," and that some expire and must be renewed. Check:
- Your secretary of state (or provincial registry) for entity registration
- Your city or county for a general business license
- Your state or province for any trade-specific rules, for example if you plan to offer pest control or biohazard cleanup, which are often separately licensed
What insurance does a commercial cleaning business need?
A commercial cleaning business needs general liability insurance from day one and workers' compensation once it has employees, and most add commercial auto and a bond.
The SBA's insurance guide lists general liability as protection against bodily injury, property damage and legal costs, and says businesses with employees need workers' compensation, unemployment and, in some states, disability insurance.
| Coverage | What it protects | When you need it |
|---|---|---|
| General liability | Injury to others and damage to client property | Before your first job; clients will ask for a certificate |
| Workers' compensation | Your employees injured on the job | Before your first hire (rules vary by state and province) |
| Commercial auto | Vehicles used for work | As soon as you drive to jobs for the business |
| Janitorial (fidelity) bond | Client losses from employee theft | When clients request it; many commercial buyers do |
| Umbrella | Extra liability above other policies | When contracts require higher limits |
Canada. Workers' compensation runs through provincial boards. WorkSafeBC says all employers are legally required to have coverage unless exempt. In Ontario, the WSIB issues clearance certificates that show a business is registered and up to date with its premiums, and clients often ask to see one before you start work.
What is a janitorial bond and how is it different from a surety bond?
A janitorial bond protects your client against theft by your employees, while a surety bond, such as a bid or performance bond, guarantees that you will perform a contract.
Janitorial bonds are usually optional by law but frequently requested by commercial buyers. Surety bonds come up mainly on public and larger contracts. If you have trouble qualifying for bid or performance bonds, the SBA's Surety Bond Guarantee program backs bonds for small businesses on contracts up to $9 million for non-federal contracts and $14 million for federal contracts. Our guide to government cleaning contracts covers when bonds are required.
What safety basics do you need before the first job?
You need labels and safety data sheets for every chemical you use and training so your crew can use them safely.
In the US, OSHA's Hazard Communication standard says employers with hazardous chemicals must have labels and safety data sheets for exposed workers and train them to handle the chemicals appropriately. In Canada, the equivalent system is WHMIS. Keep a binder or digital folder of safety data sheets for every product, and take a copy to each site.
Add slip and fall prevention (wet floor signs, proper mop technique), safe lifting, and a simple incident reporting process. Commercial buyers will ask how you train your crew, and having a real answer helps you win.
How should a new cleaning company set its prices?
Set prices from the labor hours each building needs times your fully loaded hourly cost, plus supplies, divided by one minus your overhead and profit target.
Do not copy a competitor's per square foot rate. Your wages, overhead and production rates are your own. Start with local wage data: the BLS reports a 2025 national median of $17.71 an hour for janitors and building cleaners, and Canada's Job Bank reports a national median of $19.74 an hour for light duty cleaners for 2023 to 2024. Then add payroll taxes, insurance and the rest. Our guide on how to price commercial cleaning has a step-by-step worked example.
How do you win your first commercial cleaning contracts?
Win your first contracts by targeting small buildings near you where the owner or manager decides quickly, and by reaching them directly rather than waiting to be found.
Good first targets:
- Small offices and professional firms
- Medical and dental suites
- Small retail units and showrooms
- Churches, gyms and daycares
- Tenant suites in buildings you already visit
A simple plan for the first 90 days:
- List 100 buildings within a short drive that match your target.
- Find the decision-maker for each: owner, office manager, practice manager or property manager.
- Contact them by email and phone with a specific, small ask: a walk-through or a place on the next bid list.
- Walk every building you are invited to, and ask what is wrong with the current cleaner.
- Send clear proposals within a day or two, using a template.
- Follow up several times, politely, until you get an answer.
Our guides on how to get commercial cleaning contracts and how to get cleaning clients go deeper, and the glossary explains industry terms you will meet in bids.
What should you plan for once the first contracts are signed?
Plan for hiring, supervision and cash flow, because commercial clients often pay 30 days after invoicing while your crew needs paying every payday.
- Hiring. Know where you will find reliable staff before you need them. In the CMM 2024 contractor survey, 50% of building service contractors said recruiting and retaining staff was a challenge to a large extent.
- Supervision. Inspect your own work before the client does.
- Cash flow. Keep enough in reserve to cover a few payroll cycles.
- Systems. Scheduling, inspections and invoicing tools save you hours once you pass a handful of accounts.
When you are ready to grow, read how to scale a commercial cleaning company.
If you want contracts to quote from day one without spending your evenings prospecting, LeadWharf finds decision-makers in your area who want recurring cleaning and sends you their direct contact, exclusive to you, for a flat fee per qualified lead after a one-time setup. Book a call to check whether your area is open.
- SBA, Choose a business structure
- SBA, Get federal and state tax ID numbers
- SBA, Apply for licenses and permits
- SBA, Get business insurance
- SBA, Surety bonds
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Janitors and Building Cleaners
- OSHA, Hazard Communication
- Government of Canada, Register your business with the government
- Canada Revenue Agency, When to register for and start charging the GST/HST
- WSIB Ontario, Clearances
- WorkSafeBC, Who needs coverage
- Health Canada, Workplace Hazardous Materials Information System (WHMIS)
- CMM, 2024 Building Service Contractor Survey Report
- Job Bank (Government of Canada), Light duty cleaner wages, NOC 65310