Last updated: May 3, 2026

How to Start a Cleaning Service in Indiana (2026)

Indiana is one of the easier states in the country to launch a cleaning service in, and the structural reasons matter. Janitorial and cleaning services are exempt from Indiana’s 7% sales tax under IC 6-2.5 – the state takes the default position that services are not taxable unless specifically designated taxable, and cleaning is not on the taxable list. Compare that to Connecticut (cleaning fully taxable at 6.35%), Iowa (taxable at 6%), West Virginia (taxable at 6%), or DC (taxable at 6%). Indiana cleaning service customers do not pay sales tax on the labor invoice. You still pay sales tax on cleaning supplies and chemicals when you buy them from supply houses (use tax applies if purchased out-of-state and shipped to Indiana), but the customer-facing invoice is sales-tax-free for the service itself.

Indiana also has no statewide cleaning service license, and the major metros – Indianapolis (Marion County BNS), Fort Wayne (Allen County), Evansville, South Bend – do not require a city cleaning business license to operate. You need a county-level DBA (filed with the County Recorder, not the Secretary of State), an Indiana LLC, an EIN, basic liability insurance, and workers’ compensation the moment you hire your first employee. Most solo cleaners can be operating legally in Indiana within 1-2 weeks of starting the LLC paperwork.

Cleaning Service Requirements in Indiana at a Glance

Requirement	Agency	Cost	Timeline
Indiana LLC Articles of Organization	Indiana Secretary of State (INBiz)	$95 online / $100 paper; biennial $32/$50 Business Entity Report	1-2 business days online
Trade Name / DBA (if doing business under a name other than LLC name)	County Recorder (where you operate)	~$25-$30 per county	Filed in each county of operation
Federal EIN	IRS.gov	Free	Immediate online
Indiana State HVAC / Cleaning Service License	NONE – Indiana does not license cleaning services	$0	N/A
Workers’ Compensation	Private insurer (competitive market)	NCCI 9014 (Bldg Service – Cleaning), 9015 (Apt House Cleaning), 0917 (Domestic Workers – residential); required at 1+ employee per IC 22-3-2-2	Before first employee starts
General Liability Insurance	Commercial insurer	$500-$1,200/year for $1M GL on small cleaning ops	Before first job
Janitor’s bond (commercial accounts)	Surety	$10K-$25K bond ($100-$250/year premium)	If commercial clients require it
Indiana Sales Tax (RRMC) – only if reselling supplies	Indiana Department of Revenue	$25 RRMC; biennial renewal free	Only if you resell cleaning products separate from service
Commercial Auto Insurance (if using vehicles)	Commercial insurer	$1,200-$3,000/year per service vehicle	Before commercial use
New Hire Reporting	Indiana New Hire Reporting Center	Free	Within 20 days per IC 22-4-10-8

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

Step 1: Decide Your Service Mix

Indiana cleaning operations break into three rough markets, each with different pricing, equipment, insurance, and sales motion:

Market	Typical Pricing	Sales Motion
Residential recurring (weekly / biweekly / monthly cleans)	$100-$200 per visit for 3BR/2BA	Word of mouth, Nextdoor, Facebook, Yelp; high client churn ~25%/year
Commercial janitorial (offices, retail, medical, property management)	$0.10-$0.20 per sq ft per clean; $300-$3,000+ per account/month	RFP / proposal-driven; bid bonds and janitor’s bond often required; long-term contracts
Specialty (post-construction, move-out, COVID/disinfection, carpet, windows)	$0.50-$2/sq ft (post-construction), $200-$600 per move-out, $150-$400 carpet	Mix of property managers, real estate agents, general contractors as referral sources

Most established Indiana cleaning companies anchor on one market and add the others over time. The residential-only path is the lowest startup cost and fastest to revenue; commercial requires more insurance, bonding, and sales effort but produces larger, more predictable contracts.

Step 2: Form Your Indiana LLC and File DBA

File Articles of Organization at INBiz for $95 online or $100 paper. Indiana LLCs file a biennial Business Entity Report ($32/$50). Get your free EIN at IRS.gov.

If your operating name differs from your LLC’s legal name (for example, you formed “Smith Family Holdings LLC” but operate as “Hoosier Sparkle Cleaning”), file a Trade Name / Assumed Business Name with the County Recorder of the county where you operate – typically $25-$30 per county. Indiana DBAs at the COUNTY level, not the state level, is a structural difference from most states.

Step 3: General Liability Insurance ($1M Standard)

$1 million general liability is the residential and commercial standard for cleaning. Annual premiums for small cleaning operations typically run $500-$1,200/year depending on payroll size, claim history, and carrier. Carriers active in the Indiana cleaning market include Next Insurance, Hiscox, Thimble, BiBerk, and traditional independent agency carriers.

Commercial accounts (offices, medical, property management) almost always require a Certificate of Insurance (COI) naming them as additional insured. Be prepared to issue COIs – your insurer should provide them at no charge.

Step 4: Janitor’s Bond for Commercial Work

A janitor’s surety bond protects clients from theft committed by your employees during cleaning work. Standard amounts: $10,000-$25,000. Premiums: $100-$250/year. Required by:

• Most commercial property managers
• Medical offices, dental practices, veterinary clinics
• Banks and financial services offices
• Government / municipal cleaning contracts
• Some hospitality and retail accounts

Residential customers rarely ask for a janitor’s bond. If you’re targeting only the residential market, you can typically skip it; the moment you start chasing commercial accounts, get one.

Step 5: Indiana Janitorial Sales Tax Exemption

This is one of Indiana’s structural advantages for cleaning businesses. Indiana’s 7% sales tax does NOT apply to janitorial and cleaning services. The Indiana DOR’s position under IC 6-2.5 is that “sales of services are generally exempt unless specifically designated taxable” – and cleaning is not on the taxable list. Sales Tax Information Bulletin #26 confirms.

What this means for your invoicing:

• Customer pays for cleaning labor ONLY – no Indiana sales tax line on the invoice
• Compare to Connecticut (cleaning fully taxable at 6.35%), DC (6%), Iowa (6%), West Virginia (6%) – Indiana customers save 6-7% relative to those markets
• If you sell consumable cleaning products separately (a bottle of cleaner the customer takes home), THAT retail sale IS taxable – get a Registered Retail Merchant Certificate (RRMC) for $25 from the Indiana DOR

What this means for your supply-side bookkeeping:

• You DO pay 7% sales tax on cleaning supplies, chemicals, equipment, and consumables when you purchase them from Indiana supply houses
• If you order out-of-state supplies online (Amazon, eBay, distributor) and the seller doesn’t collect Indiana sales tax, you owe Indiana use tax at the same 7% rate – report on your Indiana income tax return or via the DOR’s INTIME portal
• You generally cannot use a resale exemption certificate when buying supplies, because you’re consuming them in providing a service rather than reselling them

Step 6: Workers’ Compensation at First Hire

Indiana requires workers’ compensation under IC 22-3-2-2 the moment you have one or more employees. Full-time, part-time, and seasonal workers all count. NCCI class codes for cleaning:

• 9014: Building Service Contractor – Cleaning (most commercial janitorial)
• 9015: Apartment, Condominium House Cleaning by Contractor
• 0917: Domestic Workers – Residential (residential maid service)

Indiana is a competitive market – any admitted carrier writes coverage; the Indiana Compensation Rating Bureau (ICRB) handles classification. Non-coverage is a Class A infraction under IC 22-3-5-1: fines up to $10,000 plus double statutory compensation, medical expenses, attorney fees, and a potential business closure order.

Step 7: Indiana Withholding and Unemployment

Register through INBiz for:

• Indiana withholding tax: 2.95% flat state PIT for 2026, plus county LIT (Marion 2.02%, Hamilton 0.95%, Allen 1.80%, Vanderburgh 2.20%, Lake 1.50%) withheld by the employee’s COUNTY OF RESIDENCE as of January 1 of the tax year – not their county of work
• DWD Unemployment Insurance: 2.5% new employer rate on the first $9,500 of each employee’s wages
• New hire reporting within 20 days under IC 22-4-10-8 – $25/employee fine for failure

Step 8: Independent Contractor vs. Employee Classification

Cleaning is one of the heavily-audited industries for misclassification in Indiana. The DWD, ICRB, and Indiana DOR all run audits. The IRS multi-factor test applies. Common misclassification patterns that draw audit attention:

• Cleaner works only for you, on your schedule, with your supplies
• You set the pay rate and the customer relationship
• You provide branded uniforms, business cards, or vehicle decals
• The cleaner has no separate business entity, no other clients, no business insurance of their own

If most of those apply, the worker is almost certainly an employee under Indiana law – and treating them as 1099 creates back-tax liability for unpaid workers’ comp premiums (with interest), unpaid UI taxes, unpaid withholding, and potential penalties. Use the IRS test conservatively.

Indiana Cleaning Market: Where the Demand Is

Indianapolis-Carmel-Anderson MSA (2.1+ million): The largest cleaning market in the state. Hamilton County (Carmel, Fishers, Westfield, Noblesville) – the fastest-growing US suburban band – has sustained residential demand at premium rates ($30-$45/hour or $150-$250 per visit for 3BR homes). Downtown Indianapolis, the Mass Ave corridor, and Broad Ripple drive commercial janitorial demand from offices, restaurants, and small medical practices. Marion County’s Eli Lilly, IU Health, Anthem, Salesforce, and the convention/event ecosystem (NCAA HQ, Lucas Oil Stadium, Gainbridge Fieldhouse) drive corporate facility cleaning demand.

Fort Wayne / Allen County (~420K metro): Indiana’s second-largest market. Sweetwater Sound’s massive headquarters complex, Lutheran/Parkview Health systems, BAE Systems, and GM Fort Wayne Assembly all generate significant commercial cleaning demand. Allen County household incomes support steady residential demand at moderate price points.

Northwest Indiana (Lake + Porter): Gary, Hammond, Munster, Crown Point, Valparaiso – Chicago-spillover market with Central Time scheduling. Many homes have working couples commuting to Chicago, generating strong recurring residential demand for biweekly cleans. Casino properties (Horseshoe Hammond, Ameristar East Chicago) create unique commercial cleaning niches.

Hamilton County suburbs – the premium residential market: Carmel, Fishers, Westfield, Noblesville household incomes are among the highest in the state. Premium cleaning brands (Maids by Trade, Molly Maid, You’ve Got MAIDS, MaidPro franchises, plus dozens of independent operators) compete for recurring residential routes. Pricing power is real – $200+ per visit is achievable for high-quality service in these markets.

Bloomington (Monroe County) and West Lafayette (Tippecanoe County) – university markets: Indiana University and Purdue create strong August/December move-in/move-out cleaning demand. Apartment turnover cleans for landlords (typically $200-$500 per unit) become a meaningful summer revenue line. Steady recurring demand from faculty households and IU Health Bloomington / Subaru of Indiana corporate facilities.

Evansville and South Bend – medical/educational anchored: Both metros have strong medical employer presence (Deaconess and St. Vincent in Evansville; Beacon Health in South Bend) plus university populations (USI, Notre Dame). Commercial janitorial demand from medical campuses follows healthcare growth patterns.

Specialty post-construction cleaning – tied to housing market: Hamilton County, Hendricks County (Avon, Plainfield, Brownsburg), and Hancock County are seeing the heaviest new-home construction in the state. Post-construction final cleans (for builders before homeowner walk-throughs) are typically $0.30-$0.80/sq ft and a high-margin specialty if you can build the builder relationships.

Cost to Start a Cleaning Service in Indiana

Solo Residential Cleaner

Item	Cost	Notes
Indiana LLC	$95	One-time online; $32 biennial
Federal EIN	Free	IRS online
County DBA (1 county)	$25-$30	If using assumed name
$1M general liability	$500-$1,200/year	Lower end for solo with no claims
Cleaning supplies + equipment (initial)	$500-$1,500	Vacuum, mop, microfiber cloths, chemicals, caddy
Branding, web, scheduling software	$200-$1,500	Logo, website, ZenMaid / Jobber / Housecall Pro
Vehicle (use personal initially)	Variable	Add commercial auto if dedicated work vehicle
Estimated total: $1,500-$5,000 to start solo residential

Small Commercial Janitorial Company (3-8 Employees)

Item	Cost	Notes
Indiana LLC + biennial reports	$95	Same as solo
$1M-$2M general liability	$1,000-$2,500/year	Higher with employee headcount
$10K-$25K janitor’s bond	$100-$250/year	Required by most commercial accounts
Workers’ comp NCCI 9014	3-8 person payroll × class rate	Required at 1+ employee under IC 22-3-2-2
Commercial auto insurance (1-2 vehicles)	$1,500-$4,000/year	Per service vehicle
Equipment – commercial vacuums, floor machines, scrubbers	$3,000-$15,000	One-time
Supply inventory	$1,500-$4,000	Initial stock
Uniforms / branding	$300-$1,500	Branded shirts, vehicle decals
Operating reserve (2 months payroll)	$10,000-$30,000	Bridges first commercial AR
Estimated total: $20,000-$60,000 to start a small commercial janitorial company

Key Indiana Agencies for Cleaning Service Operators

Agency	What They Handle	Contact
Indiana Secretary of State (INBiz)	LLC formation, biennial Business Entity Report	inbiz.in.gov
County Recorder (each county of operation)	Trade Name / Assumed Business Name (DBA) filing	County-specific
Indiana Department of Revenue (DOR)	Sales tax (cleaning services exempt; supplies taxable on purchase), withholding, RRMC if reselling supplies	in.gov/dor
Indiana Department of Workforce Development (DWD)	Unemployment insurance ($9,500 wage base, 2.5% new ER), wage and hour, new hire reporting	in.gov/dwd
Indiana Workers’ Compensation Board (WCB)	Workers’ comp under IC 22-3-2-2 – NCCI 9014/9015/0917 for cleaning	in.gov/wcb
Indiana Compensation Rating Bureau (ICRB)	Workers’ comp classification and rating	icrb.net
Indiana New Hire Reporting Center	Report new and rehired employees within 20 days under IC 22-4-10-8	in-newhire.com

Related Indiana Business Guides

• Starting a Business in Indiana: Complete Guide

← Back to all Indiana business guides

Frequently Asked Questions

Do cleaning services charge sales tax in Indiana?

No. Indiana’s 7% sales tax does NOT apply to janitorial and cleaning services under IC 6-2.5 and Sales Tax Information Bulletin #26. The Indiana DOR’s default position is that services are exempt unless specifically designated taxable, and cleaning is not on the taxable list. Your customer-facing invoice charges no Indiana sales tax on cleaning labor. Compare to Connecticut, DC, Iowa, and West Virginia – all of which tax cleaning services. You DO pay 7% sales tax on cleaning supplies and chemicals when you buy them, and you owe use tax at 7% on out-of-state purchases where the seller didn’t collect Indiana sales tax.

Do I need a state cleaning service license in Indiana?

No. Indiana does not license cleaning services at the state level, and major Indiana metros – Indianapolis (Marion County BNS), Fort Wayne (Allen County), Evansville, South Bend – do not require a city cleaning business license either. You need an Indiana LLC, federal EIN, county-level DBA if using an assumed name, general liability insurance, and workers’ comp the moment you hire your first employee. Specialty services using commercial-grade chemicals or pressure washers may need environmental permits depending on runoff considerations.

How does Indiana sales tax work for cleaning supplies?

You pay Indiana’s 7% state sales tax on cleaning supplies, chemicals, equipment, and consumables when you purchase them from Indiana supply houses. There’s no local sales tax to worry about – 7% statewide. If you order supplies out-of-state online and the seller doesn’t collect Indiana sales tax, you owe Indiana use tax at the same 7% rate – report through the DOR’s INTIME portal. You generally cannot use a resale exemption certificate when buying cleaning supplies because you’re consuming them in providing a service, not reselling them.

Does Indiana require workers’ comp for cleaning service operators?

Yes – Indiana requires workers’ compensation under IC 22-3-2-2 for any business with one or more employees, full-time, part-time, or seasonal. NCCI class codes for cleaning: 9014 (Building Service Contractor – Cleaning), 9015 (Apartment, Condominium House Cleaning), 0917 (Domestic Workers – Residential). Indiana operates a competitive market – any admitted carrier writes coverage. Non-coverage is a Class A infraction under IC 22-3-5-1: fines up to $10,000 plus double statutory compensation, medical expenses, attorney fees, and potential business closure order.

Should I treat cleaners as employees or 1099 contractors in Indiana?

If a cleaner works only for you, on schedules you set, with supplies you provide, in branded uniforms, and has no separate business entity or other clients – they’re an employee under Indiana law and federal IRS multi-factor analysis. The cost difference between employee (workers’ comp + UI + withholding) and 1099 contractor creates strong misclassification incentive, and Indiana is one of the heavily-audited states. The DWD, ICRB, and Indiana DOR all run misclassification audits in cleaning. Use the IRS multi-factor test conservatively – back-tax liability for misclassified workers includes unpaid premiums with interest and potential penalties.

Do I need a janitor’s bond in Indiana?

Not by law – but most commercial cleaning accounts (offices, medical, dental, property management, banks, government contracts) require a janitor’s surety bond before signing a contract. Standard amounts: $10,000-$25,000. Annual premiums: $100-$250. The bond protects the client from theft committed by your employees during cleaning work. Residential customers rarely ask for it. If you’re targeting only the residential market, you can typically skip it; the moment you start chasing commercial accounts, get one.

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

A solo residential cleaner can start for $1,500-$5,000: Indiana LLC ($95), county DBA ($25-$30), $1M general liability ($500-$1,200/year), supplies and equipment ($500-$1,500), and basic branding/scheduling software ($200-$1,500). A small commercial janitorial company (3-8 employees) runs $20,000-$60,000: $1M-$2M GL ($1,000-$2,500/year), $10K-$25K janitor’s bond ($100-$250/year), workers’ comp NCCI 9014 (rate × payroll), commercial auto, commercial-grade equipment ($3,000-$15,000), supply inventory, uniforms, and a 2-month operating reserve.