How to Start a Cleaning Service in California (2026)

Last updated: April 1, 2026

California is the largest cleaning services market in the United States, and for good reason. With nearly 40 million residents, millions of commercial properties, and a culture that prizes outsourcing household chores, demand for cleaning services is strong in every corner of the state. But California also has some of the strictest business regulations in the country, and the cleaning industry gets special attention from state agencies.

If you plan to hire employees, California requires you to register as a janitorial employer with the Labor Commissioner’s Office under the Property Service Workers Protection Act. You’ll also face mandatory workers’ compensation insurance for even a single employee, Cal/OSHA workplace safety requirements, an $800 annual franchise tax, and local business license fees that vary by city. This guide walks through every requirement, cost, and step so you can launch your California cleaning business the right way.

Cleaning Service Requirements in California at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	CA Secretary of State (bizfile Online)	$70	3-5 business days
Statement of Information (LLC-12)	CA Secretary of State	$20	Due within 90 days, then biennial
Federal EIN	IRS	Free	Immediate (online)
Annual Franchise Tax	Franchise Tax Board (FTB)	$800/year	Due annually — no first-year exemption
Janitorial Employer Registration	Labor Commissioner’s Office (DLSE)	$500/year	Required before hiring janitorial workers
Local Business License	City/County	$50-$300/year	Varies by city
Workers’ Compensation Insurance	Commercial insurer	Varies	Mandatory for 1+ employees
General Liability Insurance	Commercial insurer	$500-$2,000/year	Same day
Cal/OSHA Written IIPP	Cal/OSHA	No fee (compliance cost)	Required for all employers
Sales Tax Registration	CDTFA	Free	Only needed for product sales (cleaning services are exempt)

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

Step 1: Form Your California LLC

File your Articles of Organization online at bizfile Online through the California Secretary of State. The filing fee is $70, and processing typically takes 3-5 business days.

Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entities on file with the Secretary of State. You can check name availability through bizfile Online before filing.

Within 90 days of formation, you must file a Statement of Information (Form LLC-12) for $20. This form lists your LLC’s managers or members and business address. After the initial filing, it’s due every two years.

If you want to operate under a name different from your LLC’s legal name, file a Fictitious Business Name Statement with your county clerk (typically $10-$40 depending on the county).

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, file taxes, and hire employees.

Step 3: Get Your Local Business License

Most California cities require a business license (sometimes called a business tax certificate) to operate within city limits. Requirements and fees vary widely:

• Cost: $50-$300/year depending on your city
• Home-based: Many cities have a separate home occupation permit category (often lower cost)
• Multiple cities: If you clean in multiple cities, you may need a license in each one. Some cities accept a license from your home city under reciprocity agreements
• County license: If you operate in unincorporated areas, check your county’s requirements

Check your city’s business licensing department or website. Major cities like Los Angeles, San Francisco, San Diego, and Sacramento each have their own process and fee structure.

Step 4: Register as a Janitorial Employer (If Hiring)

This is a California-specific requirement that catches many new cleaning business owners off guard. Under the Property Service Workers Protection Act (Labor Code Sections 1420-1434), you must register with the California Labor Commissioner’s Office (DLSE) before employing anyone as a janitor or cleaner.

Key details:

• Fee: $500/year (non-refundable)
• Triggers: Employing at least 1 worker in a janitorial capacity
• Renewal: Annual
• Training mandate: You must provide sexual violence and harassment prevention training to all janitorial employees every 2 years
• Penalties for non-registration: Fines, inability to enforce contracts, and potential misdemeanor charges

This law was enacted to protect cleaning workers from exploitation and harassment. It applies to any business that employs workers to perform janitorial services, including residential and commercial cleaning.

Step 5: Get Insurance – Workers’ Comp, Liability, and Bonding

Workers’ Compensation Insurance (Mandatory)

California has one of the strictest workers’ comp requirements in the nation. Every employer with even 1 employee must carry workers’ compensation insurance (Labor Code Section 3700). There is no exemption based on business size or number of employees.

• Penalty for non-compliance: Misdemeanor offense, criminal fine of at least $10,000 plus administrative penalties up to $100,000, and/or imprisonment up to 1 year
• Cal/OSHA can also issue a stop order shutting down your business until you obtain coverage
• Sole proprietors and single-member LLCs with no employees are generally exempt, but coverage is recommended

General Liability Insurance

Not legally mandated, but practically essential for any cleaning business. Most commercial clients and property managers require proof of coverage before hiring.

• Average cost: $500-$2,000/year for a small cleaning business
• Typical coverage: $1 million per occurrence / $2 million aggregate
• Covers: Property damage at client sites, bodily injury, slip-and-fall claims

Janitorial Surety Bond

A bond protects your clients against employee theft and dishonesty. While not legally required, being bonded is a strong competitive advantage.

• Cost: $100-$350/year
• Coverage amounts: $10,000-$100,000

Step 6: Set Up Cal/OSHA Compliance

California enforces workplace safety through Cal/OSHA, which has stricter requirements than federal OSHA. If you have employees, you must comply with these standards from day one:

Written IIPP (Injury and Illness Prevention Program)

Every California employer is required to maintain a written Injury and Illness Prevention Program under 8 CCR 3203. This is non-negotiable and one of Cal/OSHA’s most frequently cited violations.

Your IIPP must include:

1. Designated person responsible for the program
2. System for identifying workplace hazards
3. Methods for correcting hazards in a timely manner
4. Employee training procedures (at hire and ongoing)
5. System for employee communication about safety
6. Procedures for investigating workplace injuries
7. Documentation and recordkeeping system

Hazard Communication Program

Under 8 CCR 5194, you must also maintain a written Hazard Communication program for all cleaning chemicals used:

• Safety Data Sheets (SDS) for every cleaning chemical, accessible to all employees at all times
• Proper GHS labeling on all chemical containers
• Employee training on chemical hazards, safe handling, and emergency procedures
• PPE provided at no cost: Chemical-resistant gloves, eye protection, and appropriate footwear

Penalties for non-compliance: Cal/OSHA can issue fines up to $25,000 per serious violation and up to $162,851 for willful or repeat violations (adjusted annually for inflation).

Step 7: Register for State Payroll Taxes (If Hiring)

If you hire employees, register with the Employment Development Department (EDD) for California payroll taxes. As a new employer, you’ll pay:

• Unemployment Insurance (UI): 3.4% (new employer rate) on the first $7,000 of each employee’s wages
• Employment Training Tax (ETT): 0.1% on the first $7,000 of each employee’s wages
• State Disability Insurance (SDI): 1.3% (2026 rate) – withheld from employee wages
• California Personal Income Tax (PIT): Withheld from employee wages based on their W-4/DE 4 allowances

You’ll also need to:

• Report new hires to the California New Employee Registry within 20 days
• Complete Form I-9 for every employee
• Provide workers with required California employment notices at time of hire

Step 8: Set Up Your Franchise Tax Account

All California LLCs must pay an $800 annual franchise tax to the Franchise Tax Board (FTB). Key details:

• Due date: $800 minimum is due by the 15th day of the 4th month of your taxable year (April 15 for calendar-year filers)
• Additional fee: LLCs with gross revenue over $250,000 pay an additional LLC fee ($900-$11,790 based on revenue brackets)
• This applies even if your business has no income – the $800 minimum is owed regardless

The franchise tax is one of the biggest ongoing costs for California small businesses and a key reason to plan your formation timing carefully.

Cost to Start a Cleaning Service in California

Solo / Small Residential Cleaning Business

Item	Cost	Notes
LLC Formation (Articles of Organization)	$70	One-time
Statement of Information (LLC-12)	$20	Due within 90 days, then biennial
Fictitious Business Name (DBA)	$10-$40	Optional, varies by county
Federal EIN	Free	Online at IRS.gov
Local Business License	$50-$300/year	Annual renewal, varies by city
General Liability Insurance	$500-$1,000/year	Strongly recommended
Janitorial Bond	$100-$250/year	Recommended
Franchise Tax	$800/year	Due annually — no exemption
Cleaning Equipment & Supplies	$200-$800	Vacuum, mop, chemicals, etc.
Marketing / Website / Cards	$300-$1,500	Optional at start
Estimated first-year total: $2,050-$4,760

Small Commercial Operation (1-5 Employees)

Item	Cost	Notes
LLC Formation + Statement of Information	$90	One-time
Fictitious Business Name (DBA)	$10-$40	Optional
Local Business License(s)	$50-$300/year	May need multiple city licenses
Janitorial Employer Registration	$500/year	Required – Labor Code 1420-1434
General Liability Insurance	$1,000-$2,000/year	Required by most clients
Workers’ Comp Insurance	$1,500-$5,000/year	Mandatory for 1+ employees in CA
Janitorial Bond	$150-$350/year	Recommended
Franchise Tax	$800/year	Due annually — no exemption
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 first-year total: $7,800-$25,490

California-Specific Tips for Cleaning Business Owners

Don’t Hire Independent Contractors — Hire Employees

This is the single biggest compliance trap in California’s cleaning industry. Under AB 5 and the ABC test, cleaning workers almost always qualify as employees, not independent contractors — because they perform work that is part of your core business (prong B). The state’s Labor Commissioner and EDD actively audit cleaning companies. Misclassification triggers back payroll taxes, penalties, and potential lawsuits. Treat your workers as W-2 employees from the start.

The Janitorial Registration Is Not Optional — and It’s Enforced

Many new cleaning business owners don’t know about the $500/year janitorial employer registration until they get cited. The Labor Commissioner’s Office actively enforces it. You must register before your first employee starts, and you must provide sexual violence and harassment prevention training to all janitorial employees every two years. Non-registered businesses can’t enforce their client contracts in court.

Residential vs. Commercial: Choose Your Lane Early

The startup costs are dramatically different. A solo residential cleaning business can launch for under $3,000. A commercial operation with employees, janitorial registration, workers’ comp, and industrial equipment can easily exceed $15,000. More importantly, commercial clients almost universally require proof of insurance and bonding before hiring you — if you’re targeting commercial work, invest in those credentials before you start marketing.

Build Your IIPP Before You Hire

Cal/OSHA’s written Injury and Illness Prevention Program is the most frequently cited violation in California. It’s free to create (Cal/OSHA provides templates), but it must exist before your first employee’s first day. Include your chemical handling procedures, PPE requirements, and employee training schedule. This is a document that inspectors ask for by name.

Related California Business Guides

• Starting a Business in California: Complete Guide

← Back to all California business guides

Frequently Asked Questions

Do I need a special license to start a cleaning business in California?

California does not require a state professional license for cleaning or janitorial services. However, if you hire employees, you must register as a janitorial employer with the Labor Commissioner’s Office under the Property Service Workers Protection Act (Labor Code 1420-1434). The registration costs $500/year and requires you to provide sexual violence and harassment prevention training to all janitorial employees every 2 years.

Are cleaning services taxable in California?

No. Cleaning services are not subject to California sales tax. Services are generally exempt from sales tax in California. However, your cleaning company does pay sales tax on the supplies and products you purchase for use in your business. You do not charge sales tax to your clients for cleaning services.

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

Yes, if you have any employees. California requires workers’ compensation insurance for all employers with 1 or more employees – there is no minimum threshold. Operating without it is a misdemeanor punishable by a fine up to $10,000, imprisonment up to 1 year, or both. Cal/OSHA can also issue a stop order shutting down your business until coverage is obtained.

What is the janitorial employer registration in California?

The Property Service Workers Protection Act requires any business that employs janitorial workers to register annually with the California Labor Commissioner’s Office (DLSE). The registration costs $500/year (non-refundable), and you must complete it before hiring your first cleaning employee. The law also requires you to provide sexual violence and harassment prevention training to all janitorial employees every 2 years.

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

A solo residential cleaning business can launch for approximately $2,050-$4,760 in the first year, including LLC formation, local permits, insurance, and basic equipment. A small commercial operation with employees typically costs $7,800-$25,490 due to the janitorial employer registration, mandatory workers’ comp, and additional equipment and compliance requirements.

What is the $800 California franchise tax?

Every California LLC must pay an $800 annual minimum franchise tax to the Franchise Tax Board, regardless of income. The $800 is due by the 15th day of the 4th month of your taxable year — there is no first-year exemption. LLCs with gross revenue above $250,000 pay an additional fee on top of the $800 minimum.