North Carolina cleaning business license and insurance requirements

North Carolina cleaning business license and insurance requirements

Kim Mercado
By Kim Mercado
Dec 15, 2023
1 min read
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The steady growth in North Carolina’s economy makes this the perfect spot for new businesses to set up shop — and more opportunities for a cleaning business to get involved in commercial and residential projects.

When you start your business, you must cover NC’s license and insurance requirements. To help you get off the ground, we’ve researched the essential steps you need to take to start your cleaning business.

Jump ahead to learn about:

Do you need a license to start a cleaning business in North Carolina?

Yes, there are licensing requirements in North Carolina. Local and state regulations related to licensing, insurance and safety standards can strongly impact cleaning businesses. Staying compliant with these regulations is crucial.

You can determine licensing requirements by the state as well as the local area of coverage. Before applying for a license, you need to determine the business’s structure, which will determine the license and permit needed.

Steps to starting a cleaning business in North Carolina

Here are the steps to becoming a properly licensed business:

1. Register your new business with the state.

If you’re a sole proprietor, you needn’t register with the state, but LLCs, LPs and corporations must apply for registration with the NC Secretary of State. These are the typical steps involved when registering a cleaning business:

  • Decide on a business structure. You must establish the legal framework for your cleaning business, such as an LLC, sole proprietorship or corporation.
  • Register your business name. Pick a unique name for your cleaning business and verify its availability. Register the name with the North Carolina Secretary of State to confirm it’s available.
  • Register your business. If your cleaning business is an LLC, partnership or corporation, you must register with the North Carolina Secretary of State and pay the appropriate filing fee.

2. File a fictitious business statement

If you’re planning to operate your cleaning business under a different name from your legal name, you’ll need to file a form known as “doing business as” (DBA) or an assumed business name. This is required regardless of whether your business structure.

You should file the DBA form with the county or counties where your business operates. Please note that the cost for filing varies by county.

3. Obtain an employer identification number (EIN)

Apply for an EIN on the IRS website, in person, by fax, by phone, or with the help of a third party. There’s no cost involved.

You’ll need an EIN for things like opening a bank account, getting credit cards for your business, or getting a business loan.

4. Get a business license

North Carolina issues more than 700 occupational licenses and permits at the state level. Local jurisdictions, such as cities or counties, may also have their own business license regulations and requirements.

Plus, NC has some strict regulations and permitting requirements for businesses dealing with hazardous waste. If you’re handling any medical or solid waste, you must have the proper permits.

Consult with your area’s municipality or county governments about any additional licenses or permits needed. These could include zoning permits, signage permits and home occupancy licenses.

5. File a sales tax permit if needed

Both residential and commercial cleaning services are not subject to sales tax in North Carolina. However, if your cleaning business sells tangible goods, such as cleaning supplies or equipment, you’ll likely need a sales tax permit from the North Carolina Department of Revenue. This permit allows you to collect and remit sales tax on your sellable items.

Local NC cleaning business license requirements

North Carolina is a highly eco-friendly area and emphasizes green cleaning. Thus, some regulations may be more strict than in other states.

City and county governments will have specific regulations you must follow. For instance, operating in a city such as Charlotte will be much different from a more rural area simply because of the magnitude of population size.

Charlotte

Are you planning to serve the Charlotte area? Visit the City of Charlotte website to learn all you need to know about starting a business there. For example, if your cleaning business involves using specific chemicals or hazardous materials, you may need to comply with environmental regulations and obtain the necessary permits.

Raleigh

In Raleigh, you would need to obtain a Business Privilege License from the City of Raleigh. If you plan to operate your cleaning business from home, you may need to comply with specific regulations for home-based businesses, such as obtaining a Home Occupation Permit.

Insurance requirements for North Carolina cleaning businesses

Protect your cleaning company, employees and equipment by putting necessary safeguards in place. Here are common types of business insurance coverages for businesses in NC:

While your business may need more specialized coverage, the above policies can help protect most businesses from everyday risks — especially when you’re just starting.

Protect your cleaning business with NEXT

We are fully committed to supporting small businesses and recognizing their unique needs. Teaming up with NEXT can assist you in taking the necessary risks to expand and enhance your business while ensuring you have essential business coverage.

You can get a quote, tailor your choices and obtain your certificate of insurance within approximately 10 minutes.

Get started with your free online quote today.

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Kim Mercado
About the author
Kim Mercado is a content editor at NEXT's blog, where she writes and edits posts for small business owners. She 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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