Read about licenses, business insurance and tips for a home or commercial cleaning business.
Thinking about starting a cleaning business in California? There’s strong demand for reliable cleaning and janitorial services across the state — from home cleaning to commercial cleaning. With the right business licenses and insurance, your cleaning company can stand out, look professional and stay protected.
Jump ahead to learn:
Follow these five steps to get your California cleaning business off the ground.
Read more: How to start a cleaning business. Get tips for your business plan, finances and marketing.
The first step in starting a cleaning business in California is to choose your business structure. This decision affects everything from taxes to liability and it determines how (or if) you’ll need to register with the state.
Here are the most common business structures for cleaning businesses in California:
If you’re unsure which business entity fits your cleaning business, consider consulting a tax professional or business advisor.
Once you’ve chosen a business structure, your next step is registering your business, if required.
If you formed an LLC, corporation or partnership, you’ll need to register with the California Secretary of State. You can do this online, by mail or in person.
If you’re a sole proprietor using only your legal name (e.g., Jane Smith Cleaning), you’re typically not required to register with the state. But if you operate under a different name (like “Spotless Spaces”), you’ll need to file a fictitious business name, also called a DBA (doing business as) — more on that in the next step.
If you’re running a business in the state of California under a name different from your legal name, you’ll need to file a “doing business as” (DBA) form, also known as a fictitious business statement. No matter your structure, you’ll need a DBA if your business name differs from your legal name.
You file the DBA form with the county clerk where your business operates. The filing cost varies by county — usually $10-$100.
If your business employs people, operates as a multi-member LLC, is part of a partnership or corporation, you must have an EIN for tax purposes. This is essential for paying employees, managing your business taxes, opening bank accounts and applying for credit.
Getting an EIN is simple. Just go to the IRS website and follow the instructions. You’ll need to provide a name for your business and some basic information like your business address. Applying is free and can be done online.
The right business insurance in California can do more than just protect your business. It shows potential clients you’re professional and trustworthy — and sometimes, it may be required by law or clients. Common types of small business insurance coverage you might need could include:
General liability coverage in California can help protect against some of the most common business risks and accidents. This liability policy can help shield your business from losses associated with non-employees suffering bodily injury at your business (such as a slip-and-fall injury).
It can also be helpful if you or your employees accidentally damage someone else’s property — and you’re on the hook to repair or replace it.
Learn more about general liability for cleaning businesses.
If you operate a cleaning company in California with at least one part-time or full-time employee you must get workers’ comp insurance. This policy can help cover lost wages and medical expenses if an employee is injured on the job.
Learn more about workers’ comp for cleaning businesses.
Commercial property coverage can help protect the physical assets you need to do your job, such as a storefront or storage facility, equipment and inventory. It can help safeguard your business property against risks like fire or theft.
If everything you bought for your work — vacuums, window washers, cleaning products, etc. — were to vanish, would you have the funds to replace them all at once?
If your owned or borrowed equipment gets stolen, lost or damaged, this coverage could help you get back to work fast and help with replacement or repairs — in your vehicle, in storage or at a job site.
Tools and equipment coverage is an add-on to general liability insurance for contractors and cleaning businesses.
In California, there’s no statewide requirement for a general business license. However, local cities and counties may have their own rules.
Each city or county may have its own license rules based on your services. Contact the city or county clerk’s office where your business will operate for details.
Both residential and commercial cleaning services are not subject to sales tax in California. However, if your cleaning business sells tangible goods, such as cleaning supplies or equipment, you’ll likely need a Sales Tax Permit from the California Department of Tax and Fee Administration (CDTFA). This permit allows you to collect and pay sales tax on your sellable items.
After meeting state requirements, your small business must also meet local city or county regulations. Local rules may include additional licenses, training or insurance — depending on where you operate.
If you’re setting up shop in the City of Angels, you’re required to obtain a business license to operate a cleaning business. You can apply for a business license online through the Los Angeles Office of Finance website.
Before you kickstart any operations for your cleaning business in San Diego, it’s mandatory to secure a business tax certificate. You can do this by filling out an application at the City Treasurer’s office and paying the appropriate filing fee for your business.
In San Francisco, you must register your cleaning business with the city. You can register your business online through the San Francisco Business Portal.
To start a cleaning business in San Jose, California, you must obtain a Business Tax Certificate. This certificate is mandatory for all businesses, including home-based operations and independent contractors. You must renew the Business Tax Certificate annually. You can apply through the City of San Jose Finance Department.
For those looking to establish a cleaning business in Sacramento, it’s important to note that licensing requirements vary depending on your business location. If your business is located in the unincorporated area of Sacramento County (not within city limits), you need a General Business License. Certain business activities may also require a Special Business License. It’s advisable to contact the Sacramento County Department of Finance for detailed information.
In Fresno, all businesses operating within city limits must obtain a Business Tax Certificate, commonly called a business license. This applies to all businesses, including cleaning services. The application process involves submitting the necessary forms and fees to the City of Fresno Finance Department. It’s also important to check with the Fresno Planning Division to ensure your business location complies with zoning regulations.
If you offer niche services like carpet cleaning or biohazard cleanup, you may need additional licenses or permits. Cleaners who specialize in services like carpet cleaning, pressure washing, upholstery cleaning, and similar services may need to obtain a contractor’s license specific to their type of business where they operate. You can get this special service license or permit through entities like the Contractors State License Board or the County License Board.
Here are a few specialized cleaning businesses that will require local permits:
Each local municipality is different, so check for local regulations and insurance requirements.
In some cases, yes. While not all cleaning companies in California are legally required to carry a bond, certain businesses — especially janitorial employers and specialized service providers — may need one to comply with state or client requirements.
A bond is different from insurance. It’s a financial guarantee that protects your clients if your business doesn’t meet its obligations, such as failing to complete a job or committing theft on-site. Even when not required by law, having a janitorial bond can help build trust and give your business a competitive edge.
Here’s a breakdown of when a bond may be required, or recommended, for cleaning companies in California:
Under the Property Service Workers Protection Act, janitorial employers in California are required to:
While the Act mandates registration and training, it does not explicitly require a surety bond as part of the registration process. However, businesses should consult the California Department of Industrial Relations for the most current requirements.
If your cleaning business offers specialized services that fall under contractor classifications (e.g., carpet cleaning, pressure washing), you may need to obtain a contractor’s license through the California Contractors State License Board (CSLB). In such cases, a $25,000 contractor’s bond is required to activate and maintain the license.
Although not legally required, many cleaning businesses in California opt for janitorial service bonds to enhance client trust. These bonds:
Bond amounts typically range from $5,000 to $100,000, with annual premiums starting around $100. The exact cost depends on factors like the number of employees and the desired coverage amount.
NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.
We’ll ask a few questions about your business and give you a quote. You can select your coverage options and purchase your policy — all in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.
If you have questions, our licensed, U.S.-based insurance professionals are available to help.
Kim Mercado is a content editor at NEXT. She writes and edits content for small business owners, and enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has contributed to Salesforce, Samsara and Google.
You can find Kim trying new recipes and cheering the 49ers.
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