How to Start a Cleaning Service in Tennessee (2026)

Last updated: February 25, 2026

Starting a cleaning service in Tennessee is one of the most accessible businesses you can launch. Tennessee does not require a state-level cleaning license, there is no personal income tax on your earnings, and demand for residential and commercial cleaning is strong across Nashville, Memphis, Knoxville, Chattanooga, and everywhere in between.

But “no state license” doesn’t mean no requirements. You still need a business license from your county or city clerk, proper insurance, and an understanding of Tennessee’s TOSHA (Tennessee Occupational Safety and Health Administration) rules. This guide covers every requirement, cost, and step to legally start and operate a cleaning business in Tennessee.

Cleaning Service Requirements in Tennessee at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Tennessee Secretary of State	$300 (minimum)	2-5 business days
Federal EIN	IRS	Free	Immediate (online)
Business License (Business Tax)	County/City Clerk	$22 minimum	Same day
Sales Tax Registration	TN Department of Revenue	Free	Same day (online)
Workers’ Compensation	Private insurer	Varies by payroll	Same day
General Liability Insurance	Private insurer	~$500-$700/year	Same day
Janitorial Surety Bond	Bonding company	~$100-$300/year	1-3 days

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

Step 1: Form Your Business Entity

Register an LLC with the Tennessee Secretary of State through the TNBEAR portal. The filing fee is $50 per member with a minimum of $300. Tennessee also requires an annual report with the same fee structure.

After forming your LLC, apply for a free EIN (Employer Identification Number) from the IRS. You’ll need this to open a business bank account, hire employees, and file taxes.

If you plan to operate under a name different from your LLC’s legal name, file an assumed name registration with the Secretary of State for $20.

Step 2: Get a Business License

Tennessee requires a business license from your county or city clerk. This is tied to the state’s business tax on gross receipts.

Fee: $22 minimum (based on business classification and gross receipts)
Where to get it: Your county and/or city clerk’s office
Exemption: Businesses with less than $10,000 in Tennessee gross receipts are exempt
Renewal: Annual, tied to your business tax filing

Step 3: Register for Sales Tax

Cleaning and janitorial services are taxable in Tennessee. You must register for a sales tax permit and collect sales tax on your services.

State rate: 7.00%
Local rates: 0%-2.75% additional
Combined rates: 8.50%-9.75% depending on location
Registration: Free through TNTAP

Key sales tax rates for Tennessee’s major cities:

Nashville (Davidson County): 9.75%
Memphis (Shelby County): 9.75%
Knoxville (Knox County): 9.75%
Chattanooga (Hamilton County): 9.25%

Step 4: Get Workers’ Compensation Insurance

If you have 5 or more employees (full-time or part-time), you must carry workers’ compensation insurance. Tennessee uses private insurance carriers – there is no state fund.

Threshold: 5+ employees (1+ in construction-related cleaning like post-construction cleanup)
Purchase from: Any licensed private insurance carrier in Tennessee
Typical rates for janitorial: $2.00-$4.00 per $100 of payroll (varies by specific work and insurer)
Penalties: Fines and personal liability for workplace injuries if not properly insured

The Tennessee Bureau of Workers’ Compensation oversees requirements and compliance.

Step 5: Get Business Insurance

General Liability Insurance

Not legally required for cleaning businesses, but essential. Most commercial clients will require proof of coverage before hiring you.

Average cost: ~$50-$60/month (~$600-$700/year) for cleaning businesses
Typical limits: $1M per occurrence / $2M aggregate
Covers: Client property damage, bodily injury (slip-and-fall on wet floors), advertising injury

Janitorial Surety Bond (Fidelity Bond)

Not legally mandated in Tennessee, but many commercial and residential clients require it. Protects clients from employee theft or dishonest acts.

Cost for $10,000 bond: $100-$300/year (1-3% of bond value)
Premiums increase with more employees or poor business credit

Commercial Auto Insurance

Required if using business vehicles. Tennessee minimum auto liability is $25,000/$50,000/$15,000, but higher limits are recommended for commercial use.

Step 6: Set Up TOSHA Compliance

Tennessee operates its own OSHA state plan through the Tennessee Occupational Safety and Health Administration (TOSHA), which is part of the Tennessee Department of Labor and Workforce Development. TOSHA standards are at least as effective as federal OSHA.

Hazard Communication Standard

Maintain a written Hazard Communication Program
Keep Safety Data Sheets (SDS) for every chemical product accessible to all employees
Ensure all chemical containers have GHS-compliant labels
Train employees on chemical hazards before their first day using cleaning products

Bloodborne Pathogens Standard

Applies if employees may encounter blood or bodily fluids (restroom cleaning, medical facility work). Requires a written Exposure Control Plan, annual training, free PPE, and hepatitis B vaccination offered to at-risk employees.

Personal Protective Equipment

Conduct a workplace hazard assessment
Provide PPE at no cost: chemical-resistant gloves, eye protection, respiratory protection for strong chemicals
Train employees on proper PPE use

Step 7: Get Equipment and Start Marketing

Basic equipment for a residential cleaning startup includes a professional vacuum, mop and bucket system, microfiber cloths, cleaning chemicals, a caddy or tote, and PPE (gloves, safety glasses). For commercial janitorial work, you’ll also need floor buffers, carpet extractors, and larger-capacity equipment.

Cost to Start a Cleaning Service in Tennessee

Item	Cost	Notes
Tennessee LLC formation	$300	Annual report also $300/year
Assumed name (DBA) if needed	$20	Filed with Secretary of State
Federal EIN	Free	Apply online at IRS.gov
Business license (business tax)	$22+	Annual, from county/city clerk
Sales tax registration	Free	Register through TNTAP
Workers’ comp insurance	Varies	Required at 5+ employees; ~$2-$4 per $100 payroll
General liability insurance	$600-$700/year	~$50-$60/month average
Janitorial surety bond	$100-$300/year	For $10,000 bond; recommended
Commercial auto insurance	$1,200-$2,400/year	If using business vehicles
Equipment and supplies	$500-$3,000	Vacuum, mop, chemicals, PPE
TOSHA compliance materials	$100-$500	SDS binders, labels, PPE, training

Estimated total startup cost: $1,200-$1,800 (solo operator) to $3,500-$7,500+ (with employees, full insurance, vehicle)

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Frequently Asked Questions

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

Tennessee does not require a state-level cleaning or janitorial license. However, you do need to form a business entity (LLC recommended, $300 minimum), get a business license from your county or city clerk ($22 minimum), and register for sales tax since cleaning services are taxable. Workers’ comp is required at 5+ employees.

Are cleaning services taxable in Tennessee?

Yes. Cleaning and janitorial services are subject to Tennessee sales tax. The state rate is 7.00% plus local taxes of 0%-2.75%, for a combined rate of 8.50%-9.75% depending on your location. Nashville, Memphis, and Knoxville all have combined rates of 9.75%.

Do I need workers’ comp for a cleaning business in Tennessee?

Only if you have 5 or more employees (full-time or part-time). Tennessee uses private insurance carriers – there is no state fund. If your cleaning business does post-construction cleanup, the construction industry threshold of 1 employee may apply instead. Sole proprietors with no employees are not required to carry coverage.

How much does cleaning business insurance cost in Tennessee?

General liability insurance averages about $50-$60/month ($600-$700/year) for cleaning businesses. A janitorial surety bond costs $100-$300/year for a $10,000 bond. Commercial auto insurance runs $1,200-$2,400/year if you use business vehicles.

Do I need a bond to start a cleaning business in Tennessee?

Tennessee does not legally require a bond for cleaning businesses. However, a janitorial surety bond (fidelity bond) is strongly recommended and often required by commercial clients. It protects clients from employee theft and costs about $100-$300/year for a $10,000 bond.

What TOSHA requirements apply to cleaning businesses in Tennessee?

Tennessee has its own OSHA state plan called TOSHA. Key requirements include a written Hazard Communication Program, Safety Data Sheets for all chemicals, GHS-compliant container labels, employee chemical safety training before first use, proper PPE provided at no cost, and a bloodborne pathogens exposure control plan if cleaning restrooms or medical facilities.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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