Start a Private Cleaning Business
One of the first steps in starting a private cleaning business is to set up a business bank account. You should open a small business account and get an Employment Identification Number (EIN). This is a legal business number you can get for free through the federal government. Having an EIN is important because you will need this when you apply for loans and file taxes. This number is also useful in filing taxes.
You’ll need to establish a bookkeeping system for your business. You should also register a trade name or “doing business as” certificate with your state. While this step is not necessary to start your private cleaning business, it is crucial for financial reporting purposes. In addition to this, a business checking account will separate your cleaning income from your personal checking account. If you have employees, they will need to be trained and have the proper insurance.
When deciding how to start a private cleaning business, you should decide on a structure. The type of company you choose will depend on the type of service you plan to provide. If you’re planning on delivering home-cleaning services, you can opt for a sole proprietorship structure. The only difference between the two types of legal entities is the amount of annual maintenance required. You can pool resources with partners and borrow to cover your startup costs. However, if you’re a beginner, a limited liability company is the best option.
How to Start a Private Cleaning Business
Once you’ve decided to start a private cleaning business, you need to determine the type of entity you will use. Depending on the type of service you provide, you may choose to hire employees. You may want to choose a limited liability company if you are hesitant to associate your personal social security number with the taxes you will be filing for your new business. But if you’re not sure about hiring employees, you should consider setting up a limited liability company.
In order to ensure that your business is viable, you must have the necessary insurance. While general liability insurance covers property damage, professional liability insurance will cover theft and protect you from lawsuits. Besides workers’ compensation and employment law, you should also obtain unemployment insurance. These two types of insurances will protect you from any kind of liabilities. And the benefits of a private cleaning business will outweigh any costs that may arise.
Once you have a customer base, you should focus on gaining new customers. If you don’t have many customers, you should offer free house cleanings in exchange for their feedback. Eventually, you can expect to charge a fee for your work. Once you are earning money, you can expand your business to other areas or franchise it. You can also try to sell your services to other companies. You may even be able to become a franchisee.