How to Start a Cleaning Business in Delaware, A 2024 Guide

The cleaning service business in the U.S. is seeing great growth, where more than 3 million Americans were employed in the cleaning services sector in 2022. In addition, the U.S. janitorial services market was estimated to be around 90 billion dollars in 2022.

However, is starting a cleaning business profitable? Before deducting taxes, insurance, and other expenses, your cleaning company might make between USD31,200 and USD39,000 annually if you cleaned five homes weekly for a year at a flat fee of USD120 to USD150 for each house.

This amount will increase if you provide extra services or add-ons, charge more for each hour worked, charge more for house cleaning, charge more for each hour worked, or all of the above.

The information above reveals that starting a cleaning service in the U.S. may be money-making for you. Then, where in the US should you open a cleaning service business? You can consider Delaware.

Delaware offers compliant taxes, in which you do not have to pay sales taxes, inheritance taxes, investment income taxes, and personal property taxes. In addition, company registration in Delaware is simple and does not require much time.

For those interested in starting a business for non-US citizens,  cleaning business in Delaware also offers a unique and rewarding opportunity.

Now, if you are interested in opening a cleaning business in this state, understanding how to start a cleaning business in Delaware will help the establishment of your business. Explore the steps below and make your starting a cleaning business checklist.

How to Start a Cleaning Business in Delaware?

Knowing how to run a cleaning service business in Delaware is the basic thing you should do before starting one. Below are how to start a cleaning business in Delaware you should take note of. 

1. Construct a Business Plan

The first step of how to start a cleaning business in Delaware is making a business plan. You should research the market and the industry to know what kind of business you can build. Then, you can determine what service you will offer, the marketing strategy, and how you will fund your company. 

Furthermore, you must determine the location and the name of your cleaning business. You must consider your target market’s income, demand, and other factors before choosing a location. Then, in terms of name, you should be wise in naming your company since it will be your entire branding. 

When choosing a business name that omits the complete name of the owner(s), general partners and sole proprietors must confirm that the desired name is accessible in the region in which the business will be located.

If a sole proprietor decides to do business under a trade name, they must apply for a Trade, Business, or Fictitious Name (DBA) Registration Certificate from the prothonotary's office in each of the counties where they want to conduct business.

2. Register Your Company

The next step on how to start a cleaning business in Delaware is registering your company with the Delaware Secretary of State. Yet, you should determine the legal status of your business before registering it.

Here are some legal structures you can choose your for cleaning business:

• Sole Proprietorship: This status is suitable for those establishing a cleaning business by themselves. They will be responsible for anything in the business, including the operations failure that can damage their personal property.
• General Partnership: The cleaning business's expenses, investments, and profits or losses are divided among at least two partners. Both partners are in charge of the company, including its management and finances. 
• Limited Partnership (LP): A third or more individuals are added to two or more General Partners to establish a Limited Partnership. To be a general partner, just one partner must be involved.
• Limited Liability Partnership (LLP): This status has the same concept as LP, but all partners have limited liability.
• Corporations: Corporations are independent legal entities that are accountable for their own financial and behavioral decisions. It has a legal identity, is accountable for any harm it incurs, and is subject to profit-sharing taxes. They are different and independent from their owners and investors.
• Limited Liability Company (LLC): LLC is the most chosen legal status for a cleaning business. LLCs eliminate some of the complications associated with corporations and partnerships while combining their finest features. Yet, LLCs are different from corporations, even though nearly share the same benefits. 

For your cleaning company, you need to file the USD90 Delaware Certificate of Formation if you choose to create an LLC. On the other hand, you must file the Certificate of Incorporation if you choose to incorporate as a corporation. 

The filing fee for a Certificate of Incorporation is USD 89 and can be paid online, via fax, or by mail. You must fill out this form completely and accurately since any mistakes might cause your file to be rejected or delayed.

3. Get an Employer Identification Number (EIN)

The next step in how to start a cleaning business in Delaware is getting the EIN. You can apply for it online, by fax, by mail, or by telephone. However, before gaining EIN, you should open a business bank account. 

Online applications are the easiest way to get an EIN. To apply for one, you can visit the IRS website and follow the instructions there. 

4. Obtain Licenses and Permits

Last but not least, the step on how to start a cleaning business in Delaware is obtaining licenses and permits. Below are the licenses and permits you need for your cleaning business:

• Business Licenses: In Delaware, a business license is required by your county or city government. Delaware charges between USD50 and USD300 for company licenses.
• Occupational License: This license is required for a certain cleaning industry in Delaware.
• Delaware Sales Tax Permits: You could require a Delaware Sales Tax Permit from the Delaware Division of Revenue if you sell goods, such as cleaning equipment.
• Workers’ Compensation Insurance: According to Delaware law, if you intend to recruit staff, you must get workers' compensation insurance.

In addition to those licenses, you should also pay attention to the business license registration, which you can find on the official website of Delaware. Delaware State licensing is required for residential cleaning services. In Delaware, cleaning services are regarded as general services. 

Meanwhile, the Delaware Business One Stop Online system allows general partners and sole owners to apply for a general business license.

Conclusion

Those are tips on starting a cleaning service in Delaware you can consider. Besides focusing on how to start a cleaning business in Delaware, you must focus on how you market your business.

There are many marketing strategies you can use to promote your business, but if you are looking for a cost-effective one, you can try SEO. You may use SEO to enhance your internet visibility and draw in more prospective clients.

Furthermore, you may target potential clients with pertinent keywords in your content to encourage them to visit your website and increase sales. This can be achieved by producing high-quality, SEO-friendly material.

Get professional and informed SEO Services from cmlabs to start producing SEO-friendly content and optimizing your website right away!