How to Start a Cleaning Business in New York | The Ultimate Guide

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New York Cleaning Business

Are you considering starting a cleaning business in New York? If so, you’re not alone. According to Market Research Future, the cleaning industry is growing, with an expected annual growth rate of 7% between 2021 and 2026. With the increasing demand for cleaning services, now is the perfect time to launch your New York LLC in the cleaning business.

In this comprehensive guide, Webinarcare Editorial Team will walk you through the process of starting a cleaning business, including the necessary steps, legal requirements, and best practices to follow. By the end of this article, you will clearly understand How to Start a Cleaning Business in New York.

How to Start a Cleaning Business in New York

What is a Cleaning Business?

A cleaning business in New York is a professional service provider that offers various cleaning solutions to clients within the state. Depending on the business’s niche, these services can include residential, commercial, and specialty cleaning. Residential cleaning involves cleaning homes, apartments, and condos, while commercial cleaning caters to offices, retail spaces, and other business establishments. Specialty cleaning services can include carpet, window, and post-construction cleaning.

Cleaning businesses in New York must follow the state’s legal requirements if you will form an LLC, such as registering the business with New York’s Secretary of State, obtaining necessary licenses and permits, and adhering to tax regulations. Furthermore, these businesses must develop a solid business plan, invest in high-quality equipment and supplies, employ and train staff, and create effective marketing strategies to grow and succeed in the local market.

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How to Start a Cleaning Business in New York

To start a cleaning business in New York, you must follow the guidelines that include identifying your niche, developing a business plan, registering your business with the New York Secretary of State, obtaining the necessary license and permit, purchasing equipment and supplies, setting your prices, develop a marketing strategy, and hiring and training staff. 

Step 1: Identify Your Niche

The first step to starting a cleaning business in New York is identifying your niche. Various cleaning services include residential, commercial, and specialty cleaning. Residential cleaning involves cleaning homes, apartments, and condos, while commercial cleaning involves cleaning offices, retail spaces, and other business establishments. Specialty cleaning services include carpet cleaning, window cleaning, and post-construction cleaning.

Residential CleaningCommercial CleaningSpecialty Cleaning Services
HousesOfficesCarpet Cleaning
ApartmentsRetail SpacesWindow Cleaning
CondominiumsPost-Construction Cleaning

Choosing a niche that aligns with your skills, interests, and the demand in your local market is essential. Research your competition and determine the type of underserved cleaning services in your area. Focusing on a niche will help you attract your target customers and set your business apart. If you will create a rental property LLC in New York, it is better to know about starting New York cleaning business as well.

Step 2: Develop a Business Plan

A solid business plan is crucial for the success of your New York cleaning business. A business plan will help you outline your business goals, identify your target market, and develop a marketing strategy. It will also help you estimate your startup costs and plan your finances. Here are the key components of a cleaning business plan:

  • Executive Summary: Provide an overview of your cleaning business, including your mission statement, goals, and objectives.
  • Company Description: Outline the structure of your business, the services you will offer, and your target market.
  • Market Analysis: Research your local market and competition, and explain how your cleaning business will stand out.
  • Marketing and Sales Strategy: Describe how you will attract new clients and retain existing ones, including your pricing and promotional strategies.
  • Operations Plan: Explain how your cleaning business will operate, including your staffing requirements, equipment, and supplies.
  • Financial Projections: Estimate your startup costs, projected revenue, and expenses for the first few years of your business.

Step 3: Register Your Cleaning Business

Before starting your cleaning business in New York, you must register your business with the New York Secretary of State. Here are the necessary steps to register your cleaning business:

Choose a Cleaning Business Name

Selecting a name for your New York cleaning business is essential to forming. There is a complete guide on New York Business Name Search for you to have a proper New York cleaning business name. 

In New York, if you do not wish to file your cleaning business right away but want to hold the name that you have decided on, then you can reserve your cleaning business name for 60 days. You must file a name reservation application with the New York Secretary of State to keep the name. 

You can check the availability of your desired business name by searching the New York Department of State Division of Corporations‘s website.

Hire a Resident Agent

A Resident Agent is a person or entity responsible for receiving legal documents and official notices for your New York cleaning business. In New York, your Resident Agent must:

  • Be a resident of New York or a business entity authorized to do business there.
  • Have a physical address in New York (P.O. boxes are not acceptable)

Choosing a reliable and responsible Resident Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. 

You can serve as your Resident Agent or appoint a friend or family member or hire the Best New York Resident Agent Services.

Recommended: Professional services will ensure your business gets legal notices and critical mail. With LegalZoom’s Registered Agent Services, they offer peace of mind and expert support for businesses, ensuring compliance and seamless communication with state authorities. That’s why we recommend using –

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File For Articles of Organization or Certificate of Incorporation

If you form an LLC for your cleaning business, you must file the New York Articles of Organization, which costs $200. However, if you form New York Corporation for your cleaning business, you must file the Certificate of Incorporation. The Certificate of Incorporation filing fee costs $125 for filing online, or by mail.. It is crucial to provide accurate and complete information on this document, as errors or omissions may result in delays or rejection of your filing.

  • Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online 
  • Offline filing: Send the form by mail to Department of State Division of Corporations, State Records and Uniform Commercial Code, One Commerce Plaza, 99 Washington Ave., Albany, NY 12231.

Recommended: Filing the Articles of Organization and the Certificate of Incorporation is easy and hassle-free if you hire a professional service. We recommend using –

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Create an Operating Agreement

An Operating Agreement is a document that contains all of your company’s organizational details. It is optional to draft an operating agreement in most states. Yet, having one as an internal document is strongly advised. Creating the New York Operating Agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

Recommended: Creating an Operating Agreement is like having a personal legal guide at hand; it’s efficient, thorough, and ensures the smooth and compliant operation of your business. With LegalZoom’s operating agreement, it will protect your rights as an owner, keeping misunderstandings at bay and your business on the path to success. That’s why we recommend using –

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Obtain an EIN 

Register your business with the New York Secretary of State and obtain the necessary licenses and permits. Before that, you must obtain an Employer identification number (EIN) in New York to open a business bank account or hire an employee for your New York cleaning business. 

The application of an EIN in New York can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Register for State and Local Taxes

Depending on your business structure and location, you may need to register for state and local taxes, such as sales and income taxes.

New York Sales Tax

New York sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In New York, the sales tax rate is 4.00%. 

New York State Income Tax

State income tax in New York is calculated based on a progressive tax rate, which means that individuals with higher incomes pay a higher tax rate. The tax rates in New York vary depending on income levels, with the highest rate imposed on those with the highest incomes. The revenue generated from state income tax funds various public services and programs in New York.

Step 4: Obtain the Necessary Licenses and Permits

In addition to registering your cleaning business in New York, you must obtain the necessary licenses and permits. Some of the common licenses and permits required for cleaning businesses include the following:

  • New York Sales Tax Permit: If you sell products, such as cleaning supplies, you may need New York Sales Tax Permit from the New York State Department of Taxation and Finance.
  • Occupational License: New York requires an occupational license specific to the cleaning industry. 
  • Workers’ Compensation Insurance: If you plan to hire employees, you must obtain workers’ compensation insurance to comply with New York law. As well as the EIN.
  • Business License: Your local city or county government requires a business license in New York. The business license fee in New York ranges from $50 – $300.

Step 5: Purchase Equipment and Supplies

You must purchase the necessary equipment and supplies to start your cleaning business in New York. Some of the essential tools and equipment for a cleaning business include:

  • Vacuum cleaners
  • Carpet cleaners
  • Mops and buckets
  • Brooms and dustpans
  • Cleaning chemicals and solutions
  • Microfiber cloths and towels
  • Sponges and brushes
  • Protective gear, such as gloves and masks
  • Ladders and step stools

Investing in high-quality equipment and supplies is essential to ensure efficient and effective New York cleaning services. You can purchase these items from local retailers or online suppliers specializing in cleaning products.

Step 6: Set Your Prices

Determining the prices for your cleaning services can be challenging, especially if you’re new to the industry. For you to set the prices for your New York cleaning services, research the prices of your competitors in New York to get a general idea of the going rates for cleaning services, calculate the cost of labor, including your hourly wage and that of your employees, and determine the profit margin you want to achieve and factor that into your pricing.

It’s crucial to strike a balance between competitive pricing and ensuring profitability. Consider hiring an accountant for bookkeeping. 

Step 7: Develop a Marketing Strategy

A well-planned marketing strategy is essential for the success of your cleaning business in New York. Here are some effective marketing tactics for your cleaning business:

  • Create a Professional Website: A website is essential to showcase your New York cleaning services, share client testimonials, and provide contact information.
  • Leverage Social Media: Create business pages on popular social media platforms, such as Facebook, Instagram, and LinkedIn, to connect with potential clients and share updates about your cleaning business.
  • Utilize Local Advertising: Advertise your New York cleaning services in local newspapers, magazines, and community bulletin boards.
  • Offer Promotions and Discounts: Attract new clients by offering promotional discounts and referral incentives.
  • Network with Local Businesses: Establish relationships with local businesses and property management companies to generate referrals and create strategic partnerships.

Step 8: Hire and Train Staff

As your cleaning business grows, you may need additional staff to accommodate the increasing workload. Investing in your New York cleaning business is better, but it is best to invest in your employees. Ensure they receive the proper compensation and training for their welfare and your company. 

Benefits of Forming a Cleaning Business

Forming a cleaning business can be a wise entrepreneurial decision as it offers a range of benefits. Here is the list of benefits to consider before you form one.

  • High Demand: With the increasing population of New York, which is currently 20,448,194, there is a growing need for cleaning services. This translates to a high demand for cleaning businesses.
  • Flexibility: New York cleaning businesses offer flexible work hours, which allows you to work around your schedule. You can choose to work part-time or full-time.
  • Low Start-up Costs: Starting a cleaning business is relatively inexpensive compared to other businesses. You can start with just a few cleaning supplies and grow your business as you gain more clients.
  • Recurring Revenue: New York cleaning businesses offer recurring revenue since most clients require regular cleaning services.
  • Personal Satisfaction: New York cleaning businesses offer a sense of personal satisfaction since you get to see the results of your work immediately.
  • Diverse Clientele: New York cleaning businesses can cater to a diverse clientele, including residential, commercial, and industrial clients.
  • Growth Potential: New York cleaning businesses have a high growth potential since you can expand your services to include additional cleaning services or target new markets.
  • Low Overhead Costs: New York cleaning businesses have low overhead costs since you can operate from home and do not require expensive equipment or inventory.

FAQs

What are the licenses required to start a cleaning business in New York?
Most cleaning businesses in New York need a trade license or DBA (doing business as) certificate to operate legally.
How much does it cost to start a cleaning business in New York?
Startup costs for a cleaning business in New York can vary depending on factors like equipment, insurance, and advertising. But roughly it could be between $2,000 to $10,000.
Do I need insurance for my cleaning business in New York?
Yes, it is highly recommended to get liability and workers’ compensation insurance in New York.
Can I start a cleaning business in New York without experience?
Yes, there’s no specific experience requirement for starting a cleaning business in New York. Although having some prior cleaning experience is an added benefit.
Is a cleaning business profitable in New York?
Due to the high demand for cleaning services in New York apartments and homes, a cleaning business can be lucrative if planned and executed properly.
How do I find clients for my cleaning business in New York?
Craigslist, creating social media accounts, building a website, asking referrals from past clients is all good starting points.
Are there any grants for cleaning businesses in New York?
According to some case studies certain cleaning businesses in New York qualify for business loans offered by the SBA (Small Business Administration)
Can I clean offices with my cleaning business in New York?
Yes, cleaning offices at commercial buildings is quite a common service type requested by businesses in New York.
How many people do I need to start a cleaning business in New York?
You can begin running a cleaning business all by yourself in New York or hire more if wanted. The initial employee count depends upon the level and scope of businesses you anticipate.
Can I start a cleaning business without a minimum wage in New York?
Yes, cleaning businesses aren’t mandatory to pay any wage or benefits to employees. However, them following norms publicly benefits business recognition and reputation.
What areas are good to launch a cleaning business in New York?
Businesses that offer commercial cleaning services tend to focus on heavily trafficked areas of the city including Midtown and downtown, while others may prefer Jamaica CI as residence remains massive there.
How can I make my cleaning business stand out in New York?
Social media accounts and creatively promoting the business differentiate one cleaning business from another along with consistency and work ethics that registers satisfaction in customers.
How important is networking for my cleaning business in New York?
Very, as professional contacts directly refer clients and jobs to cleaning businesses in New York.
Do I need to register my cleaning business as a foreign entity to serve clients outside of New York?
For every different state you’re providing services to an out of town client, assign a diverse “Qualifying Agent” after the office has been filed under “Foreign Corporations”.
Apart from dusting what other specific cleaning services can I offer to residential customers in New York?
Offer cleaning of all sorts according to customer need including rug cleaning, sanitizing, extensive house cleaning etc.
Want kind of marketing tactics should be used to promote cleaning businesses in New York?
Social Media Marketing (SMM) and Yelp pages should be created to give clients a idea of authenticity of your work-ability.
How important are equipment and cleaning preparation is for a cleaning business in New York?
Streams of city inspection, including those issued by environmental agencies such as the New York City Department of Sanitation, necessitates cleaning services to maintain and be equipped with appropriate cleaning supplies and equipments.
Can I set up a cleaning business at retail locations such as tourist attractions in New York keeping Covid restrictions in mind?
at present this is still very limited due to tough norms and restrictions of Covid compliance issued by concerned authorities.
Will past criminal history affect while launching a cleaning business in New York?
Keeping in mind the degree or severity of the client/customer engagement, prior record and status apply to permit owners and partners concluding ownership of at least 10 percent is needed for filing and registering cleaning businesses in New York.
what are the suitable name domains I should choose for my cleaning business website in New York?
Domain names that lets say includes the city name, preferred business name, catchy slogan and some functional adjectives compelling potential clients to opt out your services.
Can MTA commercial cleaning contracts accessible to individuals or groups looking to start out industries related cleaning businesses in New York?
MTA contracts concentrate exclusively on their official agents based on prior bid proposals or internal corporation.
How long does take to file paperwork to form a cleaning business for owners in New York?
Answer:On average, it can take around one week to one to get paperwork approved and registered corporate.
Will non- profit corporate status offer other benefits and sources of investment considered a cleaning business in New York City?
No, aside from the objective of solely focusing on social concerns, non-profit businesses aren’t available to tap funding from external investment funds or attract long term investors and shareholders.
Can I claim insurance paid by clients for petty objects cleaning jobs in New York?
Any losses or damages resulting from an incident of your discretion, deductions must usually be assessed minus a considerably lower holding after customer clients have authorised the deducted compensation.
Under which section should taxes be paid off for cleaning businesses in New York?
cleaning companies located in all states/federal governments of New York are subject to similar tax policies including both the state tax imposed on business entities (S-Corporations or Limited Liability Corporations [L.L.C.) and also the state tax payable on hospitality management as of date.
Will opening a cleaning firm as an allied healthcare services offer occupation for professionals and opportunities in New York?
Installing modifiable profiles/postings matching up with occupation/tried and qualified professionals with proper intensive healthcare training (basic life support training, CPR training, first aid) is done by industry leads through externals and their professional websites.
Are green cleaning solutions effective in removing toxic pollutants and cleaning and being used making base for cleaning businesses in New Your?
Inspecting variants in mixtures of chemicals (industrial grade/plant-based) must ultimately result as an extremely safe or harmful exfoliating substance due to absolute principles ensuing the radical deep-clean conscious New York law-abiding city administration checking the permissibility standards.
What age group is eligable for starting their cleaning businesses in New York?
Entrepreneurs all ages are welcomed to start cleaning businesses as long as they are legally authorised citizenship or Resident over the age of 14 are more prone to be welcomed positively.
Is it difficult to start a cleaning business in New York?
Starting a cleaning business in any city comes with its unique challenges, but New York has a highly competitive market for cleaning services.
Do I need any special license or registration from the state of New York?
Yes, to do business in New York as a cleaning service, you will need a sales tax certificate and a business certificate.
Can I start a residential cleaning business in New York?
Yes, the demand for residential cleaning services is high in New York due to busy lifestyles and a growing number of working residents.
What are some of the best areas in New York to start a cleaning business?
Busy areas such as Manhattan, Brooklyn, and Queens have a high demand for cleaning services.
How can I stand out and compete with other cleaning services in New York?
Offer exceptional service, unique pricing structures, and specialized services, among other strategies.
How can I market my cleaning business in New York?
Try online advertising and social media marketing, post flyers in local business centers, and network with other business owners.
Is there a particular peak season for cleaning services in New York?
Winter months usually generate the most demand for cleaning services in New York City due to snow and dirt buildup.
Can an individual competitor start a cleaning business in New York?
Yes, an individual can start a cleaning business in New York. However, the competition is stiff.
Do I need to charge sales tax on cleaning services in New York?
Yes, New York state charges sales tax for cleaning services.
Are there any certifications I need to get to offer specialized cleaning services, such as carpet cleaning?
To offer carpet and upholstery cleaning services, you will need to obtain Institute of Inspection, Cleaning and Restoration Certification (IICRC).
How many employees should my cleaning business have?
The number of employees needed will depend on the size, specialty, and overall goals of the business.
Can I use my personal car to transport my cleaning supplies around New York?
Yes, you could use your personal car for transport but check for driveshare listings.
How can I protect myself from liability lawsuits as a cleaning service provider?
Obtain insurance coverage, understand contract dispute resolution procedures, and offer clean and safe service practices.
What are the pros and cons of hiring an independent contractor versus an employee?
Hiring a contractor may be cost-efficient and less of a liability. However, they don’t provide coverage like employees.
Are there any government assistance programs for small business owners in New York?
Yes, at different intervals state and federal government provide assistance and restructuring programs/incubation centers along with mentors to guide ideas and ventures.
Do I need a bonding insurance for my cleaning business in New York?
Yes, bonding insurance insulates clients and customers if the need arises.
What are some of the popular cleaning niches in New York?
Housekeeping, offices, equipment/supply cleaning, and medical office medical accommodation cleaning.
Can I work from home if I start a cleaning business in New York?
Yes, particularly if you start in the housekeeping market, you might not need an office until you have transit times long enough to justify one.
Can I buy a cleaning franchise in New York?
Yes, owning a cleaning franchise is an excellent way to start and can provide extensive benefits over an IC.
Can I hire a contracting company to provide cleaners, on behalf of my cleaning business?
Yes, using temps and outsourced cleaning veterans/independent contractors can make an excellent addition to your efficiency swag.
What qualifies me as a cleaning professional in New York?
Your experience and certification demonstrate the professional threshold in NY.
How much experience do I need to start a cleaning business in New York?
Start with whatever you have. Customers enjoy pleasant and reliable cleaners compared to expertise or talent.
Can I operate across all 5 boroughs of NYC as a cleaning service provider?
Yes, it is the hub area attraction for cleaners due to high demand and cost of living competitors.
Can I incorporate eco-friendly products in my cleaning business offerings?
Yes, eco-friendly consciousness has risen adversely in every niche worldwide to preserve the environment as disclosed/introduced by NY’s mayor.
What are some unique services I could include in my cleaning business?
Add-ons such as disinfectant spraying medicare cleaning, carpet certified sanitizing, hardwood deep-wax treatment and organizational assistance services.
What happens if I forget to file taxes as a cleaning business in New York state?
Unfiled Sales tax on your company could trigger huge fees/penalties in the form of business exhaustion or garnishing plus settlements.
Does the state of NY have any regulations about commercial cleaning customer information?
The state requires that your company must protect its customer’s confidential material from unnecessary disclosure in line with standard business procedures.

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Conclusion

Starting a cleaning business in New York can be rewarding and profitable if you follow the right steps and adhere to the legal requirements. By identifying your niche, developing a solid business plan, registering your business, obtaining the necessary licenses and permits, purchasing high-quality equipment and supplies, setting competitive prices, developing a robust marketing strategy, and hiring and training a reliable staff, you will be well on your way to launching a successful cleaning business in New York.

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