Learn what licenses are needed to start a cleaning business in TX, and which business insurance could help protect you.
Thinking about starting a cleaning business in Texas? With its booming economy, low regulatory barriers and growing population, the Lone Star state is a great place to launch a residential or commercial cleaning service.
Start by understanding the licenses and permits you’ll need. Then learn how business insurance designed for cleaning companies can help protect your investment — and boost your credibility in a competitive market.
In this guide, we’ll cover:
Starting a cleaning business in Texas is relatively straightforward. With the right paperwork and planning, you can be up and running in no time.
Read more: How to start a cleaning business. Get tips for your business plan, finances and marketing.
Your business structure affects how you’re taxed, your personal liability, and the paperwork required to get started. Common options include:
If you’re forming an LLC, corporation or limited partnership, you’ll need to register with the Texas Secretary of State through the SOSDirect portal. Sole proprietors and general partnerships typically only need to file a “Doing Business As” (DBA) with the county clerk’s office.
Small businesses often opt for sole proprietorship due to its simplicity. If you’re launching your business in Texas, there’s no need to register with the state; you only need to file a “Doing Business As” (DBA)
If your business name differs from your legal name, you’ll likely need to file an Assumed Name Certificate — also known as a DBA. This lets you operate under a custom business name and opens the door to branding opportunities.
Requirements vary depending on your business structure and location, so check with your local government office.
You’ll need an EIN from the IRS to hire employees, open a business bank account or apply for financing.
Getting it is easy. Visit the IRS website and follow the instructions. This is a free service offered by the Internal Revenue Service, and the process is very quick.
The right business insurance in Texas 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 Texas 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.
Unlike most states, Texas law does not require most businesses to carry a workers’ comp policy. Even though it’s not mandated, this policy could still help your business cover medical expenses and wage replacement for employees who get ill or suffer an injury 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.
Good news: Texas doesn’t require a state license specifically for cleaning services. However, many cities and counties have local requirements. To stay compliant, check with your local business office or chamber of commerce to find out if you need a general business license or any special permits based on your services.
This is especially important if your new business involves:
If you clean for more than one household or offer taxable services, you need a sales tax permit. Apply online through the Texas Comptroller’s eSystems Portal. It typically takes 2–3 weeks to get approved.
While the state of Texas doesn’t require a specific license to operate a cleaning business, local laws and requirements can vary by city or county. Before you start serving clients, check with your local government to make sure you have the right licenses, permits or zoning clearances — especially if you plan to operate out of a commercial space or hire employees.
Local rules may include:
Below are examples of what some major Texas cities require for cleaning companies:
To start a business in Houston, sole proprietorships and general partnerships doing business under a name other than the owner’s name need to file a DBA with the Harris County Clerk. All businesses must file a rendition in the county where they operate, detailing their business personal property assets.
San Antonio requires a certificate of occupancy to legally use a commercial space. You can find the application on the city’s official website. Check for any additional zoning or use restrictions based on your location and business type.
The City of Dallas has a useful resource hub to help small businesses set up seamlessly. If your business has physical assets like inventory, equipment or machinery that generate income, you need to report these on a rendition form for the county appraisal district.
Austin doesn’t issue a general business license, but you must register your business name with Travis County if you’re a sole proprietor or partnership using a DBA. Depending on your services, you may also need an Environmental Health Permit — especially if your cleaning supplies use chemicals.
In Fort Worth, sole proprietors and partnerships must register with Tarrant County. You may also need a certificate of occupancy if you operate out of a commercial location. The city’s Planning & Development Department can confirm zoning and use requirements.
El Paso requires a business license for most types of businesses, including cleaning services. You’ll also need a certificate of occupancy if you’re leasing or buying commercial space. Permits for chemical use or storage may apply depending on your services.
Lubbock doesn’t have a specific business license requirement for cleaning businesses. However, check with the city’s Business Development office to determine if local licensing requirements or permits are specific to your cleaning business. You may need a tax permit to sell taxable goods or services.
NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.
In about 10 minutes, you can get a quote, buy your policy online and download yourproof of insurance. 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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