Do I Need a Business License to Clean Houses?
The necessity of obtaining a business license to clean houses depends on a number of different factors, including the structure of your agreement and services you provide and a variety of financial considerations. However, it is important to remember that regulations vary from county to county and state to state, so check with your local government to ensure you are in compliance with the law.
Other People Are Reading
-
Business Structure
-
If you choose to clean houses as an independent contractor or as a sole proprietorship under your own name with no employees, you most likely do not need a business license. However, if you elect to contract with clients under a fictitious business name or as a partnership, limited liability company or corporation, you will need to obtain a business license and a separate tax identification number.
Insurance
-
Although you may be able to obtain liability insurance as an independent contractor, it might behoove you to get a quote for insurance as a licensed business. Your premiums and deductibles may be lower, and you might be able to qualify for more extensive coverage as a business than as an individual.
-
Purchasing Products
-
Having a business license or tax ID number sometimes allows house cleaners to purchase supplies they need to perform the services they offer at wholesale prices, or to obtain business accounts at gas stations or suppliers that you wouldn't have access to as an independent contractor. If you choose to include the cost of supplies in your fees, be sure to account for use taxes that must be paid. If you elect to charge clients separately for supplies, you must include sales tax. Either way, consult with an accountant or legal professional to help you decide which method is best for you.
Other Considerations
-
Additional financial and business considerations could also help you to determine whether operating as an independent housekeeper or as a licensed business is better for you. For example, your personal credit score may keep you from obtaining loans for the startup costs of your own house cleaning business. It may be better to operate as an independent contractor at first and become a business after you've built up a substantial client list. Additionally, if you wish to expand to cleaning offices or other businesses, you will most likely need to obtain a business license for liability reasons.
-
