How to Start a Cleaning Service in Illinois (2026)

Last updated: February 25, 2026

Starting a cleaning service in Illinois is one of the most accessible businesses you can launch. Illinois does not require a state-level cleaning license, startup costs are low, and demand for both residential and commercial cleaning is strong across Chicago, the suburbs, and downstate communities.

But “no state license” doesn’t mean no requirements. You still need to form your business entity, get local business licenses, carry the right insurance, and understand Illinois’s specific tax and workers’ comp rules. This guide covers every requirement, cost, and step to legally start and operate a cleaning business in Illinois.

Cleaning Service Requirements in Illinois at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	IL Secretary of State	$150	Several weeks (mail) or 4-5 days (online + $100)
Federal EIN	IRS	Free	Immediate (online)
Local Business License	City or village clerk	Varies ($50-$500+)	1-2 weeks
Annual Report (Secretary of State)	IL Secretary of State	$75	Due on LLC anniversary month
Sales Tax Registration	N/A	Not required (cleaning services exempt)	–
General Liability Insurance	Commercial insurer	$500-$800/year	Same day
Surety/Janitorial Bond (recommended)	Bonding company	$100-$350/year	Same day
Workers’ Comp Insurance (any employees)	Commercial insurer	Varies by payroll	Same day
State Cleaning License	N/A	Not required	–

How to Start a Cleaning Service in Illinois (Step by Step)

Step 1: Form Your Illinois LLC

File your Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State. Cost: $150 by mail, or $250 for online expedited processing (4-5 business days).

Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entities on file. You’ll need an Illinois Registered Agent with a physical street address in the state – you can serve as your own registered agent if you have an Illinois address.

If you want to operate under a different name (e.g., “Windy City Cleaning” instead of “Windy City Cleaning LLC”), file an Assumed Business Name with the Secretary of State.

Annual Report: Illinois LLCs must file an annual report by the first day of the LLC’s anniversary month. Cost: $75. Missing this can result in administrative dissolution.

Step 2: Get Your Federal EIN

Apply for a free Employer Identification Number at IRS.gov. You’ll receive it immediately when applying online. You need this to open a business bank account, and it’s required if you plan to hire employees.

Step 3: Get Your Local Business License

Illinois does not have a statewide business license. You’ll need a local business license from the city or village where you operate.

• Cost: Varies by municipality (typically $50-$500+)
• Where to apply: Your city or village clerk’s office, or the municipal business licensing department
• Chicago: Business license through the Chicago Business Licensing portal
• Home-based: Most municipalities allow home-based cleaning businesses, but verify your local zoning allows it
• Renewal: Typically annual

Step 4: Understand Illinois Sales Tax Rules for Cleaning

This is a major advantage for cleaning businesses in Illinois:

• Residential cleaning is NOT subject to Illinois sales tax
• Commercial cleaning is NOT subject to Illinois sales tax

Illinois treats cleaning as a labor service, and labor services are generally exempt from the Retailers’ Occupation Tax. You do not need to register for sales tax collection, and you do not need to charge your clients sales tax on cleaning services.

Important distinction: If you sell tangible goods alongside your cleaning services (e.g., selling cleaning products to clients separately), sales tax would apply to those product sales.

Step 5: Get Insurance and Bonding

General Liability Insurance

Not legally mandated, but practically essential. Most commercial clients, property managers, and government contracts require proof of coverage before hiring a cleaning service.

• Average cost in Illinois: ~$500-$800/year for a small cleaning business
• Typical coverage: $1 million per occurrence / $2 million aggregate
• What it covers: Property damage, bodily injury, and personal injury claims arising from your cleaning work

Janitorial Surety Bond

A bond protects your clients against employee theft and dishonesty. While not legally required in Illinois, being bonded is a competitive advantage – many commercial and government clients only hire bonded cleaning companies.

• Cost: $100-$350/year (most cleaning businesses pay $100-$150)
• Coverage amounts: $10,000-$100,000

Workers’ Compensation Insurance

Illinois has one of the strictest workers’ comp requirements in the country: any employer with even one employee must carry coverage. There is no minimum employee threshold.

• NCCI Code 9014 (Commercial Janitorial): Approximately $2.50-$3.50 per $100 of payroll
• NCCI Code 0917 (Residential Cleaning): Approximately $3.00-$4.00 per $100 of payroll
• Penalties for non-compliance: Up to $500/day, minimum $10,000 fine, and corporate officers can be held personally liable
• Sole proprietors, partners, and LLC members can exempt themselves from coverage

Step 6: Set Up OSHA Compliance (If Hiring)

Illinois does not have its own state OSHA plan for the private sector, so federal OSHA rules apply directly. If you have employees handling cleaning chemicals, you must comply with OSHA’s Hazard Communication Standard (29 CFR 1910.1200).

Required elements:

1. Written Hazard Communication Program – A documented plan describing how your business handles chemical safety
2. Safety Data Sheets (SDS) – Maintain an SDS for every cleaning chemical you use; must be accessible to all employees at all times
3. Chemical Inventory – Complete written list of all hazardous chemicals
4. Proper Labeling – All chemical containers must have GHS-compliant labels
5. Employee Training – Required at hire and whenever a new chemical is introduced. Must cover: how to read SDS/labels, hazards of chemicals used, required PPE, emergency procedures

Personal Protective Equipment (PPE): You must provide chemical-resistant gloves, eye protection, and appropriate footwear at no cost to employees.

Penalties for non-compliance: Up to $16,550 per serious violation and up to $165,514 for willful/repeated violations.

Step 7: Handle Employer Requirements (If Hiring)

If you hire employees beyond the OSHA and workers’ comp requirements above, you’ll also need to:

• Register for Illinois unemployment insurance tax with IDES through MyTax Illinois within 30 days – new employers pay ~3.35% on the first $14,250 of wages per employee
• Register for Illinois income tax withholding through MyTax Illinois
• Complete Form I-9 for every employee
• Report new hires to IDES within 20 days

Cost to Start a Cleaning Service in Illinois

Solo / Small Residential Cleaning Business

Item	Cost	Notes
LLC Formation (Secretary of State)	$150	One-time, $250 for online expedited
Assumed Name (DBA)	$0-$150	Optional, fee varies by year
Federal EIN	Free	Online at IRS.gov
Local Business License	$50-$500	Annual, varies by municipality
Annual Report (SOS)	$75	Due on LLC anniversary month
General Liability Insurance	$500-$800/year	Strongly recommended
Janitorial Bond	$100-$250/year	Recommended
Cleaning Equipment & Supplies	$200-$800	Vacuum, mop, chemicals, etc.
Marketing / Website / Cards	$300-$1,500	Optional at start
Estimated total: $1,375-$4,225

Small Commercial Operation (1-5 Employees)

Item	Cost	Notes
LLC Formation + EIN	$150	One-time
Assumed Name (DBA)	$0-$150	Optional
Local Business License	$50-$500	Annual
Annual Report (SOS)	$75	Due on LLC anniversary month
General Liability Insurance	$500-$800/year	Required by most clients
Workers’ Comp Insurance	$750-$2,400/year	Required with any employees
Janitorial Bond	$150-$350/year	Recommended
Commercial Equipment & Supplies	$2,000-$10,000	Industrial grade
Commercial Auto Insurance	$1,200-$3,000/year	Required for business vehicles
Marketing / Website / Uniforms	$500-$3,000	Professional presence
Estimated total: $5,375-$20,425

Related Illinois Business Guides

• Starting a Business in Illinois: Complete Guide

← Back to all Illinois business guides

Frequently Asked Questions

Do I need a license to start a cleaning business in Illinois?

Illinois does not require a state-level license for cleaning or janitorial services. You do need a local business license from your city or village clerk’s office. Cost varies by municipality.

Is cleaning taxable in Illinois?

No. Cleaning services – both residential and commercial – are exempt from the Illinois Retailers’ Occupation Tax (sales tax). You do not need to collect or remit sales tax on cleaning services. However, if you separately sell tangible products (like cleaning supplies), those product sales are taxable.

Do I need insurance for a cleaning business in Illinois?

General liability insurance is not legally mandated for solo operators, but it’s practically required – most commercial clients and property managers expect proof of coverage. Workers’ comp is legally required if you have any employees at all – Illinois has no minimum employee threshold.

What’s the difference between bonded and insured?

Insurance (general liability) protects against accidents – property damage, bodily injury, etc. Bonding (a surety bond) protects clients against employee theft and dishonesty. Being “bonded and insured” is the gold standard that most commercial clients look for when hiring a cleaning company.

How much does it cost to start a cleaning business in Illinois?

A solo residential cleaning business can launch for approximately $1,375-$4,225, including LLC formation, local license, insurance, and basic equipment. A small commercial operation with employees typically costs $5,375-$20,425 due to additional insurance, equipment, and compliance requirements.

Does Illinois require workers’ comp for cleaning businesses?

Yes, if you have any employees at all (including part-time). Illinois has no minimum employee threshold – even one employee triggers the requirement. Penalties for non-compliance include fines up to $500 per day with a minimum $10,000 fine. Sole proprietors and LLC members can exempt themselves.