How to Start a Cleaning Business in South Carolina (2026)

Last updated: February 25, 2026

Starting a cleaning service in South Carolina 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 $125 with no annual report fee – ever. The key advantage for SC cleaning businesses: residential and commercial cleaning services are not subject to South Carolina’s 6% sales tax, since general janitorial labor is not listed as a taxable service under SC Code Section 12-36-910. Workers’ compensation is not required until you have 4 or more employees, giving solo operators and small teams room to grow before that cost kicks in. The main regulatory hurdle is obtaining a local business license from each city or county where you operate.

Cleaning Service Requirements in South Carolina at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	SC Secretary of State	$125 (online) / $110 (mail)	1-2 business days (online)
Local Business License	City or County Government	Varies by gross income ($50-$500+)	Varies by jurisdiction
Federal EIN	IRS	Free	Immediate (online)
General Liability Insurance	Private Carrier	~$580-$1,650/year	Before starting operations
Janitorial Surety Bond	Bonding Company	~$50-$500/year	Recommended before taking clients
Workers’ Compensation Insurance	Private Carrier	~$78-$104/month per employee	Before hiring 4th employee
Fictitious Name / DBA (if applicable)	SC Secretary of State	$10	1-2 business days

How to Start a Cleaning Service in South Carolina (Step by Step)

Step 1: Form Your Business Entity

Register an LLC with the SC Secretary of State through the Business Entities Online portal ($125 online, processed in 1-2 business days). South Carolina requires no annual report for LLCs – once you form, there is no recurring state fee.

If you operate under a name different from your LLC’s legal name, file a Fictitious Name with the Secretary of State ($10, valid for 5 years).

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

Step 2: Get Your Local Business License

This is the most important regulatory step in South Carolina. There is no statewide business license. Instead, each city and county issues its own business license with fees based on gross income.

If you operate within a city, get a license from that city
If you operate outside city limits, get a license from the county
If you clean in multiple jurisdictions, you need a license from each one
License period runs May 1 through April 30 (annual renewal)
Use the Municipal Association of SC (MASC) address lookup to determine your requirements
Renew online at localblrenewal.com

Step 3: Register for State Taxes

Good news for cleaning businesses: Residential and commercial cleaning services are not subject to South Carolina’s 6% sales tax. SC Code Section 12-36-910 specifically lists taxable services, and general janitorial/cleaning labor is not among them. Note that laundry, dry cleaning, and pressing services ARE taxable (6% + 1% surcharge), but that is a different industry.

Important caveat: If you sell cleaning products to customers (not just use them while cleaning), those tangible product sales are taxable. You would need a Retail License ($50 one-time) for product sales. If you only provide cleaning labor using your own supplies, no Retail License is needed.

Step 4: Get Insurance Coverage

General liability insurance is not legally mandated by the state for cleaning businesses, but it is essential in practice. Most commercial clients, property managers, and landlords require proof of coverage. Typical cost: $580-$1,650/year for $1 million per occurrence / $2 million aggregate.

Workers’ compensation insurance is required in South Carolina when you have 4 or more employees (or annual payroll exceeding $3,000). Part-time workers and family members count toward the threshold. Typical rates for cleaning businesses:

Estimated cost: ~$78-$104/month per employee
Coverage available through private carriers or the NCCI Assigned Risk Pool
Penalties for non-compliance: fines up to $100/day and potential misdemeanor charges

Step 5: Get Bonded (Recommended)

A janitorial surety bond (employee dishonesty bond) protects clients against theft by your employees. While not required by South Carolina law, it is an industry standard that many commercial clients and property managers expect. A typical $5,000-$10,000 bond costs $50-$500/year depending on your credit and bond amount.

Step 6: Set Up Employer Accounts (If Hiring)

Register with the SC Department of Employment and Workforce (DEW) for unemployment insurance via the SUITS portal. The new employer UI tax rate is 1.060% on the first $14,000 of each employee’s wages per year (max cost: $148.40/employee/year). SC cut UI rates for 2026 – the largest reduction since 2011.

Report all new hires within 20 days via newhire.sc.gov.

Cost to Start a Cleaning Service in South Carolina

Item	Cost	Notes
LLC Articles of Organization	$125	Online via Secretary of State
Federal EIN	Free	IRS, immediate online
LLC Annual Report	$0	Not required in SC
Local Business License	$50-$500+/year	Varies by municipality and gross income
Fictitious Name / DBA	$10	If operating under different name; renew every 5 years
General Liability Insurance	$580-$1,650/year	$1M/$2M coverage
Janitorial Surety Bond	$50-$500/year	Recommended, not required ($5K-$10K bond)
Workers’ Comp Insurance (per employee)	~$78-$104/month	Required at 4+ employees
Cleaning Supplies & Equipment	$500-$2,000	Vacuums, mops, chemicals, etc.

Estimated total startup cost: $800-$2,500 (solo operator without employees). South Carolina is one of the most affordable states for launching a cleaning business thanks to the $0 annual report, sales tax exemption on cleaning services, and the 4-employee threshold before workers’ comp kicks in. Your biggest recurring cost will be the local business license(s) and insurance.

Related South Carolina Business Guides

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Frequently Asked Questions

Do I need a license to start a cleaning business in South Carolina?

No state-level cleaning license is required in South Carolina. You need to form your business entity with the Secretary of State, get a local business license from each city or county where you operate, and carry proper insurance. No specialized trade license is needed for general cleaning services.

Are cleaning services taxable in South Carolina?

No – residential and commercial cleaning services are not subject to SC’s 6% sales tax. SC Code Section 12-36-910 lists specific taxable services, and janitorial/cleaning labor is not among them. However, laundry and dry cleaning services ARE taxable (6% + 1% surcharge), and sales of cleaning products to customers are taxable. If you only provide cleaning labor, you do not need to collect sales tax.

Do I need workers’ compensation for my cleaning business?

Workers’ comp is required once you have 4 or more employees (or annual payroll exceeding $3,000). Part-time workers and family members count. This means solo operators and small teams of 1-3 can operate without workers’ comp insurance, though voluntary coverage is available.

Do I need a bond for a cleaning business in South Carolina?

A surety bond is not legally required, 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 $50-$500/year.

What insurance do I need for a cleaning business in South Carolina?

At minimum, carry general liability insurance ($1M per occurrence / $2M aggregate, typically $580-$1,650/year). If you have 4+ employees, 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 South Carolina?

A solo cleaning business can start for around $800-$2,500, including LLC formation ($125), local business license ($50-$500), liability insurance ($580-$1,650/year), bond ($50-$500/year), and supplies ($500-$2,000). SC’s $0 annual report and sales tax exemption on cleaning services keep ongoing costs low.

More South Carolina Business Guides

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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How to Start a Cleaning Service in South Carolina (2026)