Pennsylvania cleaning business license and insurance requirements

Pennsylvania cleaning business license and insurance requirements

Kim Mercado
By Kim Mercado
Dec 15, 2023
1 min read
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Pennsylvania has a vibrant and diverse small business ecosystem, with about 1.1 million small businesses accounting for 99.6% of all businesses in the state. So, there are ample opportunities for entrepreneurs to thrive.

With that comes a fair amount of competition, so if you’re starting a small cleaning business, you want to get off on the right foot with the state and local rules and regulations. We’ve researched the essential steps you need to take to secure a license and Pennsylvania business insurance coverage so you can scrub, sweep and sparkle your way to success in the great state of Pennsylvania.

Jump ahead to learn about:

5 steps to starting a cleaning business in Pennsylvania

1. Register your business with the state

Before filing your documents to register your business in PA, you must decide how to set up your business. In this state, licensing and insurance requirements for a cleaning business will vary depending on the type of cleaning services you will offer. These are the first points you need to cover in the registration process:

  • Choose a business structure. This is the legal framework of your cleaning business, such as an LLC, sole proprietorship or corporation.
  • Make sure your business name is available. Check that your desired business name is available by searching the name in the PA Department of State’s business filing services website.
  • Register your business. Depending on your business structure, you may need to register with state agencies. For example, if your business is an LLC, corporation, partnership or nonprofit corporation, you will likely need to register with the Pennsylvania Department of State.

The Pennsylvania Department of State has a really handy dedicated website for getting your business set up. You’ll need to create a user profile here to register online. If you’re not filing online, there is a list of registration forms you may need.

2. File a fictitious business statement

When operating a cleaning business in PA under a name that is not your legal name, you must register a fictitious name. This applies to sole proprietorships, partnerships, corporations and limited liability companies.

To register a fictitious name, you need to file a Registration of Fictitious Name form with the Pennsylvania Department of State and pay a filing fee.

The registration allows you to use a different name for your business than the legal name of your entity. So if your legal name is “Contessa’s Cleaning Inc.” you may want your business sign to read “Contessa’s” or “Contessa’s Cleaning”. You would need to register both these options as a fictitious name.

3. Obtain an Employer Identification Number (EIN)

If you run a business with employees, or if it’s a corporation, partnership or multi-member LLC, you need an EIN for tax requirements.

But if you’re the only one in your business, like in a sole proprietorship or single-member LLC, the IRS doesn’t make you get an EIN. Still, having one can help keep your personal and business money separate.

Getting an EIN is free. You can get one online or fill out a form called SS-4 and send it to the IRS by fax or mail.

4. Get a business license

The process to register your business varies based on several factors. There’s no general business license that all Pennsylvania businesses are required to obtain. Instead, you may need specific licenses based on the business activity.

To make sure you cover all your bases, complete the Business Registration Checklist provided by the Pennsylvania Department of Revenue.

5. Obtain a sales tax permit

In Pennsylvania, residential and commercial building cleaning services are subject to sales tax. So, you will need to obtain a sales tax license to collect and remit sales tax on their cleaning services.

You can obtain the sales tax license by completing an online business tax registration in the Pennsylvania Department of Revenue’s myPATH system. There is no fee to submit the application.

Local Pennsylvania cleaning business license requirements

City and county governments have their own sets of rules, especially in buzzy metropolises like Philadelphia or Pittsburgh. The more densely populated an area, the more regulated it tends to be. So, take the time to research the regulations in all areas where you plan to operate.

Philadelphia

In Philadelphia, every business, including cleaning services, must get a Business Privilege License from the Philadelphia Department of Revenue to operate. If your cleaning service is in certain commercial areas of the city, you’ll also need a Commercial Activity License.

Pittsburgh

If your Pittsburgh cleaning business needs to use chemicals or hazardous materials, you may need to obtain a permit from the Allegheny County Health Department. This permit ensures that your business complies with health and safety regulations. Cleaning businesses are also subject to the Business Income & Receipts Tax.

Insurance requirements for PA cleaning businesses

If you’re operating a cleaning business or planning to start one, consider investing in Pennsylvania business insurance coverage. There are several insurance options a business may choose to opt for. Here are some of the most common.

Business insurance can protect you from unforeseen circumstances like slip and fall injuries, damage to a client’s property, employee injuries and business interruptions.

Let NEXT help you with your Pennsylvania cleaning business

Ready to start your cleaning business in Pennsylvania? Here’s a tip: consider NEXT for your small business insurance. Why? Because NEXT is 100% dedicated to small businesses like yours. We offer affordable, custom coverage for more than 1,300 small business professions, including cleaning services.

Answer a few quick questions on our online application and explore coverage options, receive a quote and secure insurance in less than 10 minutes.

Once payment is made, your certificate of insurance is instantly accessible.

And don’t worry, if you have any questions along the way, our team of licensed, U.S.-based insurance professionals are ready to assist.

Kickstart your journey with a 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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