The following is our Commercial Cleaning Licensing and Bonding Guide for businesses that offer janitorial services, a business license needs to be acquired before the business is legally allowed to serve clients. Before starting any kind of business, certain legal obligations such as being bonded and insured are enforced.
In order to obtain a business license, a surety bond may be required along with other supporting documents. To find out information on business license types, visit the U.S. Small Business Administration’s website.
Some types of cleaning companies include house cleaners, carpet cleaners, janitorial workers, window cleaners, etc. Examples of locations for janitorial services could be for houses, schools, hospitals, banks, small and large companies, stores, etc.
There are many questions one may have such as:
1) Why do I need a surety bond in order to get my business license?
2) What are the steps to start a commercial cleaning business?
3) How much is a commercial surety bond and how long does it last?
Starting up and running a business can be stressful since there is a lot of information to keep in mind. Fortunately, this guide will cover information about a janitorial business license, bonding and insurance, and other facts regarding licensing and insurance for this type of business.
6 Steps to Start a Commercial Cleaning Business
Will the business be kept small with only a few employees or will it be larger with numerous employees? Knowing how many employees will be working for the business is an important decision to be made first since it impacts the size and the number of buildings that will be serviced.
Step 2. Choose what type of buildings the business will clean.
The size and the type of building that will be cleaned needs to be decided. For example, the type of building could be a large skyscraper, or it could be for a small mom and pop convenience store. It’s normal to start small with only a few employees working on small-scale buildings such as day cares or gyms. After the business has been in operation for some time, the amount and size of buildings, as well as the number of employees, can be increased.
Step 3. Know what to charge clients.
Before the business operates, knowing what to charge clients for cleaning services is crucial in order to ensure business stability. The hourly rate needs to be calculated in order to make a profit. Expenses such as insurance, gas, license, and cleaning supplies are factors that must be included when deciding what the hourly rate will be.
Step 4. Select a business name.
After the type of buildings and number of employees have been figured out, the business name needs to be chosen. It’s a good idea to select a professional business name since janitorial or cleaning businesses need to appear professional to their clients. The business name reflects the strength and integrity of a business.
Step 5. Acquire a business license and bank account.
Go to Business USA to locate important information on business licensing. On that website, choose the state in which the business will be assisting clients. Information on the particular state’s licensing requirements will be displayed on the site.
A DBA (doing business as) name usually needs to be filed, although this requirement varies by state. A local representative can be contacted to discover local requirements for a DBA.
Once a business license is acquired, a business checking account can be opened. Information on business financing can also be found on the SBA’s website. Commercial Cleaning Licensing and Bonding is not required in all states and municipalities.
Step 6. File a commercial cleaning surety bond.
Commercial Cleaning Licensing and Bonding will ensure the business will comply with state and/or federal bonding and insurance requirements. In order to obtain a business license, a bond may be required by the state or city, depending on the location of business operation. This surety bond can be referred to as a Janitorial Surety Bond, a Cleaning Services Surety Bond, or a Cleaning Surety Bond.
Apply for your Janitorial Surety Bond here at Surety 1. Applications are free and no-obligation. After the principle receives their surety bond, it will need to be filed with the obligee (city, state, or federal.)
What Does Bonding Insurance Provide?
Surety bonds protect the clients of the business from dishonest employees, theft, misconduct, fraud, and much more. Bonding insurance guarantees the client will not be financially or legally at fault if anything unfavorable were to happen while a service is being performed. For example, in the case of cleaning homes, if a worker is injured while working on the job, an insurance claim can be filed against the bond instead of being filed against the homeowners insurance.
Surety bonds are a resource for a business to reassure clients that the business is professional and that it can reimburse clients if issues arise. Often referred to as a surety bond or a contract bond, it reassures clients they will receive service that is promised to them. Businesses who can advertise themselves as “licensed and bonded” may attract more clients.
Surety Bond Amounts and Costs
Bond amounts vary for this type of bond since the state, the number of employees, and the type of clients will vary with each commercial cleaning business. If there are five or fewer employees, the bond amount can be $5,000. Higher bond amounts are required with more employees.
There are a range of factors that play a part in determining the cost for this type of surety bond. The price for the bond (referred to as the premium) depends on the required bond amount, the business owner’s credit score, and the surety company that ensures the bond.
A surety bond is valid for a certain length of time. It needs to be renewed with the surety company before it expires in order to legally stay in business. Fortunately, the cost for renewal is only a small fraction of the bond premium and the process is much simpler.
Each state may require a specific bond type and bond amount. A surety bond ensures clients that the cleaning business is legitimate and insured. To be sure a business is being bonded correctly, a business can contact their local business licensing agency to find out if a bond is required or not. Even if a business has not been notified a bond is required, the agency should still be contacted. Commercial Cleaning Licensing and Bonding varies by state and municipality.
Do All Businesses Need to be Bonded, Licensed, and Insured?
The majority of businesses across the United States are required to meet all three requirements. To guarantee the business needs to meet these requirements, go to the U.S. Small Business Administration’s website. Local and state resources can be found there.
Apply for Your Bond
1. Complete our easy to use and secure online application.
2. One of our surety experts will call and email you with the firm quote and an agreement to sign.
3. Make payment (all major credit cards accepted) and your bond will be emailed to you.
Get More Help
Call us toll free at 877-654-2327. We have live surety bond agents available Monday – Friday, 8:00 – 4:30 PST. We’re glad to help!