Legal Requirements for
Starting a Cleaning Business

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 Warning 

I'm not a lawyer, this information is based on experience, common sense, and a little research. Take it with a grain of salt and if necessary, consult a local expert. Also, this advice is geared towards people setting up sole proprietorship businesses. Partnerships and corporations are more complicated. If you want to set your business up as one of these, I strongly suggest you consult an attorney.

 These are the kinds of questions we'll answer. 

• How do I set up a sole proprietorship business?
• Do I need a license and who do I get it from?
• Do I have to tell the IRS about my business?
• How do I get a bank account in my business name?
• What are the legal requirements for getting a business name?
  

If these are the type of basic questions you have about setting up your cleaning business then you are in the right place.

 Name, License, Bank Account ! 

 Name 

First you need to register your business name with your state. Exactly how you do this will vary from state to state but in general you simply need to fill out a form and pay a fee. You should be able to take care of this at your county court house.

Before you drive to the court house look them up in the phone book and verify that the court house is the right place. If it is, find out exactly where in the building you need to go and what their hours are.

You will probably have to publish your business information in a local paper several times before you can proceed any farther. If it is required, you will be informed when you register. Find the cheapest paper you can publish in. This is not advertising, it is a legal requirement so don't pay any more than you need to.

Once you have registered your business name with the county, they will inform the IRS and your state income tax board, if you have one. If you want help with dealing with these agencies, the IRS and most state tax boards have online sites with tax information for new businesses.

 License 

After you have registered your company's name the next step is to get a business license. Business licenses are a prime source of revenue for the city or town you live in so don't think you can get by without one if it's required. As with registering your name, call your city hall first to make sure that is where you go. Find out exactly where in city hall you need to go and their business hours before you make the trip.

 Business Bank Account 

Now that your business name is registered with the state, the IRS and your state tax authority know about you, and your business is licensed; you can now open a bank account in your business name. Once your account is established you are legal and can start earning money!

 Speaking of local experts... 

If you'd like a little extra help with setting up your business try your bank. Speak to the person in charge of new business accounts. Tell him that you are going to start a cleaning business but aren't entirely sure how to go about it. Banks deal with new businesses all the time and they are usually happy to give you a few minutes of advice about how to set yours up. If they aren't helpful think strongly about opening your business account somewhere else; there are plenty of banks around.

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Copyright © 2003 by The Cleaning Institute.