How to Start a Cleaning Service in Indiana (2026)

Last updated: February 25, 2026

Starting a cleaning service in Indiana has one of the lowest barriers to entry of any business. There is no state-level cleaning license required, and you can form an LLC online for just $95 through INBiz with same-day processing. The key advantage for Indiana cleaning businesses: cleaning services (both residential and commercial) are generally exempt from Indiana’s 7% sales tax, since services are not taxable unless specifically designated by statute. Workers’ compensation is required as soon as you hire your first employee, but Indiana has some of the lowest workers’ comp rates in the country. This guide covers every requirement using official Indiana sources.

Cleaning Service Requirements in Indiana at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	Secretary of State via INBiz	$95 (online) / $100 (mail)	1 business day (online)
Assumed Business Name (DBA)	Secretary of State or County Recorder	$20-$35	1-5 business days
Business Tax Registration (BT-1)	Indiana Department of Revenue	$25	48-72 hours
Workers’ Compensation Insurance	Private Carrier	~$2.43-$3.31 per $100 payroll	Before hiring first employee
General Liability Insurance	Private Carrier	~$1,200-$1,600/year	Before starting operations
Janitorial Surety Bond	Bonding Company	~$100-$300/year	Recommended before taking clients
Federal EIN	IRS	Free	Immediate (online)
Biennial Business Entity Report	Secretary of State via INBiz	$32 (online) every 2 years	Anniversary month of formation

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

Step 1: Form Your Business Entity

Register an LLC with the Indiana Secretary of State via the INBiz portal ($95 online, processed in about 1 business day). This is significantly faster than most states.

If you operate under a name different from your LLC’s legal name, file an Assumed Business Name via INBiz ($20 online) or with your County Recorder ($25-$35 for sole proprietors).

Apply for a free federal EIN from the IRS (immediate online). You need this to open a business bank account, hire employees, and file taxes.

Step 2: Register for State Taxes

File the BT-1 Business Tax Application through INBiz ($25). This registers you for any required tax accounts with the Indiana Department of Revenue.

Good news for cleaning businesses: Cleaning services (both residential and commercial) are generally exempt from Indiana’s 7% sales tax. Indiana only taxes services that are specifically listed as taxable in the statute, and cleaning labor is not among them.

Important caveat: If you bundle cleaning labor with taxable materials (selling cleaning products to the customer) in a single price, the entire transaction may become taxable as a “unitary transaction.” Best practice: always separately itemize labor (exempt) and materials/products (taxable at 7%) on your invoices.

Step 3: Check Local Licensing Requirements

Indiana does not require a state-level cleaning license. However, local requirements vary:

• Indianapolis/Marion County: Business license required through the Department of Business and Neighborhood Services
• Home-based businesses: May need a home occupation permit from your local zoning office
• Smaller cities: Many have minimal or no business license requirements – check with your city clerk

Step 4: Get Insurance Coverage

General liability insurance is not legally mandated by the state for cleaning businesses, but it’s essential in practice. Most commercial clients, property managers, and landlords require proof of coverage. Typical cost: $1,200-$1,600/year for $1 million per occurrence / $2 million aggregate.

Workers’ compensation insurance is required in Indiana as soon as you hire one or more employees. Indiana has some of the lowest workers’ comp rates in the nation – roughly 60% below the national average. Typical rates for cleaning businesses:

• NCCI Code 9014 (commercial janitorial): ~$2.43 per $100 of payroll
• NCCI Code 0917 (residential cleaning): ~$3.31 per $100 of payroll
• Typical monthly cost: $67-$84 per employee

Penalties for operating without workers’ comp: fines up to $100/day, misdemeanor charges (up to 1 year imprisonment and $5,000 fine), and potential double compensation liability. Coverage is available through private carriers or the Indiana Assigned Risk Pool.

Step 5: Get Bonded (Recommended)

A janitorial surety bond (also called a fidelity bond) protects clients against employee theft or dishonesty. While not required by Indiana law, it is an industry standard that many commercial clients and property managers expect. A typical $5,000-$10,000 bond costs $100-$300/year depending on your credit and bond amount.

Step 6: Set Up Employer Accounts (If Hiring)

Register with the Indiana Department of Workforce Development for unemployment insurance. The new employer UI tax rate is 2.50% on the first $9,500 of each employee’s wages per year (max cost: $237.50/employee/year).

Report all new hires electronically within 20 business days via in-newhire.com. Electronic reporting is mandatory as of July 2024.

Cost to Start a Cleaning Service in Indiana

Item	Cost	Notes
LLC Articles of Organization	$95-$100	INBiz online ($95) or mail ($100)
Federal EIN	Free	IRS, immediate online
BT-1 Tax Registration	$25	Indiana Department of Revenue via INBiz
Assumed Business Name (DBA)	$20-$35	If operating under different name
General liability insurance	$1,200-$1,600/year	$1M/$2M coverage
Janitorial surety bond	$100-$300/year	Recommended, not required ($5K-$10K bond)
Workers’ comp insurance (per employee)	~$67-$84/month	Required at 1+ employees
Cleaning supplies & equipment	$500-$2,000	Vacuums, mops, chemicals, etc.
Biennial Business Entity Report	$32 every 2 years	Due in anniversary month of formation

Estimated total startup cost: $900-$3,200 (solo operator without employees). Indiana is one of the most affordable states for launching a cleaning business thanks to the low LLC fee ($95), cheap biennial report ($32/2 years), and sales tax exemption on cleaning services. Add workers’ comp costs when you hire your first employee.

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← Back to all Indiana business guides

Frequently Asked Questions

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

No state-level cleaning license is required in Indiana. You need to form your business entity via INBiz, register for taxes with the BT-1 application, check for local business license requirements in your city/county, and carry proper insurance. No specialized trade license is needed for general cleaning services.

Are cleaning services taxable in Indiana?

Cleaning services are generally exempt from Indiana’s 7% sales tax. Indiana only taxes services specifically listed in statute, and cleaning labor is not among them. However, if you sell cleaning products to customers or bundle materials with labor in a single price (a “unitary transaction”), the product portion may be taxable. Best practice: always itemize labor and materials separately on invoices.

Do I need workers’ compensation for my cleaning business?

Yes, workers’ comp is required as soon as you hire one or more employees in Indiana. The good news: Indiana has some of the lowest workers’ comp rates in the country – roughly 60% below the national average. Typical rates for cleaning businesses are $2.43-$3.31 per $100 of payroll. Penalties for non-compliance include fines up to $100/day and potential misdemeanor charges.

Do I need a bond for a cleaning business in Indiana?

A surety bond is not legally required by the state, but it is an industry standard. Many commercial clients and property managers require a janitorial bond before hiring you. It protects against employee theft or dishonesty. A typical $5,000-$10,000 bond costs $100-$300/year.

What insurance do I need for a cleaning business in Indiana?

At minimum, carry general liability insurance ($1M per occurrence / $2M aggregate, typically $1,200-$1,600/year). If you hire even one employee, workers’ compensation insurance is mandatory. A janitorial surety bond is strongly recommended. Consider a Business Owner’s Policy (BOP) to bundle coverage at a discount.

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

A solo cleaning business can start for around $900-$3,200, including LLC formation ($95), tax registration ($25), liability insurance ($1,200-$1,600/year), bond ($100-$300/year), and supplies ($500-$2,000). Indiana’s biennial report is only $32 every two years. Costs increase when you hire employees due to the workers’ comp requirement.