How to Start a Cleaning Business in Washington (2026)

Last updated: February 25, 2026

Starting a cleaning service in Washington is straightforward – there’s no state-level cleaning license required, and the state has no income tax, which means more of your earnings stay in your pocket. The main regulatory considerations are Washington’s Business & Occupation (B&O) tax on gross receipts, workers’ compensation through L&I (the state’s monopolistic fund), and getting proper liability coverage. A key tax advantage: routine janitorial services are not subject to retail sales tax in Washington – only B&O tax applies. This guide covers every requirement from official Washington sources.

Cleaning Service Requirements in Washington at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Certificate of Formation)	Secretary of State	$200	7-10 business days (online)
State Business License (UBI Number)	Dept. of Revenue (DOR)	~$50 processing	~10 business days
B&O Tax Registration	DOR	Included with BLA	Included with business license
Workers’ Compensation Insurance	L&I (state fund only)	~$1.48/hour per employee (avg)	Before hiring first employee
General Liability Insurance	Private Carrier	~$25-$65/month	Before starting operations
Janitorial Surety Bond	Bonding Company	~$100-$400/year	Recommended before taking clients
Federal EIN	IRS	Free	Immediate (online)

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

Step 1: Form Your Business Entity

Register an LLC with the Washington Secretary of State ($200 online filing fee). This protects your personal assets from business liabilities. Apply for a free federal EIN from the IRS.

Step 2: Get Your State Business License (UBI Number)

Apply for a Unified Business Identifier (UBI) through the Business License Application (BLA) with the Department of Revenue. This registers you for B&O tax, any applicable sales tax, and with multiple state agencies. Processing takes about 10 business days. Check whether your city requires an additional local business license.

Step 3: Understand Your Tax Obligations

B&O Tax: Routine janitorial services fall under the Service & Other Activities B&O tax classification. The rate is 1.5% on gross receipts for businesses with revenue under $1 million. Businesses under $28,000/year may qualify for the Small Business B&O Tax Credit.

Sales Tax: Routine janitorial and cleaning services – including floor cleaning, window washing, dusting, trash removal, bathroom sanitizing, and rug/upholstery cleaning in place – are NOT subject to retail sales tax in Washington. Only B&O tax applies. However, specialized cleaning services (construction cleanup, pressure washing, restoration work) ARE subject to both retailing B&O tax and retail sales tax.

No Income Tax: Washington has no state income tax, so you keep more of your cleaning business profits.

Step 4: Get Insurance Coverage

General liability insurance is essential for any cleaning business. Most commercial clients and property managers require proof of coverage. Typical: $1 million per occurrence / $2 million aggregate.

Workers’ compensation is mandatory in Washington for any employer with one or more employees. Washington is a monopolistic state fund – you must purchase coverage through L&I, not from private insurance carriers. Penalties for non-compliance: up to $250/day, maximum $50,000.

Step 5: Get Bonded (Recommended)

A janitorial surety bond protects clients against employee theft or dishonesty. While not required by Washington law, many commercial clients and property managers require it. Typical cost: $100-$400/year for a $10,000-$50,000 bond.

Step 6: Set Up Employer Accounts (If Hiring)

Register with ESD for unemployment insurance (new employer rate: ~2.7% on first $72,800 per employee). Set up your L&I workers’ comp account. Washington also requires Paid Family & Medical Leave contributions (0.74% of wages, split between employer and employee). Report new hires within 20 days.

Cost to Start a Cleaning Service in Washington

Item	Cost	Notes
LLC Certificate of Formation	$200	One-time SOS filing fee (online)
Annual Report	$70/year	Due annually based on formation date
Federal EIN	Free	IRS, immediate online
State Business License (UBI)	~$50	Processing fee through DOR
General liability insurance	$300-$800/year	$1M/$2M coverage
Janitorial surety bond	$100-$400/year	Recommended, not required
Workers’ comp insurance (per employee)	Varies by hours/classification	Required at 1+ employees, L&I state fund
Cleaning supplies & equipment	$500-$2,000	Vacuums, mops, chemicals, etc.

Estimated total startup cost: $1,220-$3,520 (solo operator; add workers’ comp and unemployment tax once you hire your first employee)

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Frequently Asked Questions

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

No state-level cleaning license is required in Washington. You need to form your business entity with the Secretary of State, get a UBI number from the Department of Revenue, and carry proper insurance. No contractor registration is needed for standard cleaning services.

Are cleaning services taxable in Washington?

Routine janitorial services are NOT subject to retail sales tax in Washington – only B&O tax applies (1.5% for businesses under $1M). However, specialized cleaning services like construction cleanup, pressure washing, and restoration work ARE subject to both retailing B&O and retail sales tax.

Do I need workers’ compensation for my cleaning business in Washington?

Yes, from your very first employee. Washington is a monopolistic state fund – you must purchase workers’ comp through L&I, not private insurers. Penalties for non-compliance are up to $250/day, maximum $50,000.

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

A surety bond is not legally required, but many commercial clients and property managers require a janitorial bond. A typical $10,000-$50,000 bond costs $100-$400/year.

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

At minimum, general liability insurance ($1M per occurrence recommended). Workers’ compensation through L&I is mandatory from your first employee. A janitorial surety bond is strongly recommended for commercial clients.

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

A solo cleaning business can start for around $1,220-$3,520, including LLC formation ($200), annual report ($70), UBI ($50), liability insurance ($300-$800/year), and supplies ($500-$2,000). Washington’s lack of income tax helps keep ongoing costs low.

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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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How to Start a Cleaning Service in Washington (2026)