How to Start a Cleaning Business in California | Requirements & Costs

Everything you need to start a cleaning business in California, including LLC formation, licensing, insurance requirements, and estimated costs.

California has the largest market for cleaning services in the US, but higher costs. The $800 annual franchise tax applies even if your LLC earns no income. Factor this into your budget before forming.

Licenses & Permits in California

  • • City business license required
  • • Seller's permit if selling products

Steps to Start a Cleaning Business in California

  1. 1

    Choose your business structure

    California LLCs offer strong liability protection. Note that California charges an $800 annual franchise tax regardless of income.

  2. 2

    File with the California Secretary of State

    File Articles of Organization with the CA SOS. The filing fee is $70 — one of the lowest in the nation.

  3. 3

    Get your EIN from the IRS

    Apply for a free Employer Identification Number at irs.gov. Required for taxes, banking, and hiring.

  4. 4

    Register with the California Franchise Tax Board

    All California LLCs must register with the FTB and pay the $800 minimum franchise tax annually.

  5. 5

    Get your city business license

    California requires a business license from your city or county. Fees and requirements vary by location.

  6. 6

    Get general liability insurance

    California recommends at least $1,000,000 in general liability coverage. Workers' comp is required if you have employees.

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Startup Costs in California

LLC Filing Fee

$70

Annual Report Fee

$800

State Income Tax

Yes

Estimated Total Startup

$1,000 - $4,000

Get Cleaning Business Insurance in California

  • ✓ General Liability Insurance — covers third-party bodily injury and property damage claims against your business
  • ✓ Workers' Compensation Insurance — covers employee injuries and illnesses that occur on the job
  • ✓ Surety Bond — guarantees your business will fulfill contractual obligations to clients

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Form Your LLC in California

Most cleaning business owners in California choose an LLC for liability protection and tax flexibility. The filing fee is $70 with the California Secretary of State. A registered agent is required.

Complete guide to forming an LLC in California →