How to Start a Cleaning Business in Tennessee | The Ultimate Guide

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Tennessee Cleaning Business

Are you considering starting a cleaning business in Tennessee? 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 Tennessee 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 Tennessee.

How to Start a Cleaning Business in Tennessee

What is a Cleaning Business?

A cleaning business in Tennessee 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 Tennessee must follow the state’s legal requirements if you will form an LLC, such as registering the business with Tennessee’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 Tennessee

To start a cleaning business in Tennessee, you must follow the guidelines that include identifying your niche, developing a business plan, registering your business with the Tennessee 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 Tennessee 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 Tennessee, it is better to know about starting Tennessee cleaning business as well.

Step 2: Develop a Business Plan

A solid business plan is crucial for the success of your Tennessee 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 Tennessee, you must register your business with the Tennessee Secretary of State. Here are the necessary steps to register your cleaning business:

Choose a Cleaning Business Name

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

In Tennessee, 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 4 months. You must file a name reservation application with the Tennessee Secretary of State to keep the name. 

You can check the availability of your desired business name by searching the Tennessee Secretary of State Business Information Search‘s website.

Hire a Registered Agent

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

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

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

You can serve as your Registered Agent or appoint a friend or family member or hire the Best Tennessee Registered 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 –

LegalZoom – $249/year

File For Articles of Organization or Charter for Profit Corporation

If you form an LLC for your cleaning business, you must file the Tennessee Articles of Organization, which costs $300. However, if you form Tennessee Corporation for your cleaning business, you must file the Charter for Profit Corporation. The Charter for Profit Corporation filing fee costs $100 for online and by mail filing. 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 e-form, fill it, and submit online. Or get the online PDF, fill it up and upload it back on the site.  
  • Offline filing: Send the form by mail to or drop it off in person at Corporate Filings, 312 Rosa L. Parks Avenue, 6th Floor, William R. Snodgrass Tower, Nashville, Tennessee 37243

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

LegalZoom – ($0 + State Fee)

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 Tennessee 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 –

LegalZoom – Starts at $99

Obtain an EIN 

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

The application of an EIN in Tennessee 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.

Tennessee Sales Tax

Tennessee 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 Tennessee, the sales tax rate is 7.00%. 

Tennessee State Income Tax

State income tax in Tennessee is calculated based on a progressive tax rate, which means that individuals with higher incomes pay a higher tax rate. The tax rates in Tennessee 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 Tennessee.

Step 4: Obtain the Necessary Licenses and Permits

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

  • Tennessee Sales Tax Permit: If you sell products, such as cleaning supplies, you may need Tennessee Sales Tax Permit from the Tennessee Department of Revenue.
  • Occupational License: Tennessee 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 Tennessee law. As well as the EIN.
  • Business License: Your local city or county government requires a business license in Tennessee. The business license fee in Tennessee ranges from $50 – $300.

Step 5: Purchase Equipment and Supplies

You must purchase the necessary equipment and supplies to start your cleaning business in Tennessee. 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 Tennessee 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 Tennessee cleaning services, research the prices of your competitors in Tennessee 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 Tennessee. Here are some effective marketing tactics for your cleaning business:

  • Create a Professional Website: A website is essential to showcase your Tennessee 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 Tennessee 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 Tennessee 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 Tennessee, which is currently 7,080,262, there is a growing need for cleaning services. This translates to a high demand for cleaning businesses.
  • Flexibility: Tennessee 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: Tennessee cleaning businesses offer recurring revenue since most clients require regular cleaning services.
  • Personal Satisfaction: Tennessee cleaning businesses offer a sense of personal satisfaction since you get to see the results of your work immediately.
  • Diverse Clientele: Tennessee cleaning businesses can cater to a diverse clientele, including residential, commercial, and industrial clients.
  • Growth Potential: Tennessee 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: Tennessee cleaning businesses have low overhead costs since you can operate from home and do not require expensive equipment or inventory.

FAQs

What licenses do I need to start a cleaning business in Tennessee?
You need a business license from the state of Tennessee and potentially a local business license as well.
How do I register my cleaning business with the state of Tennessee?
You can register your cleaning business with the Tennessee Division of Business Services.
Do I need to have insurance to start a cleaning business in Tennessee?
Yes, you should have general liability insurance and worker’s compensation insurance before starting your cleaning business.
What kind of cleaning services can I offer in Tennessee?
You can offer a variety of cleaning services in Tennessee including residential, commercial, and industrial cleaning.
How should I price my cleaning services in Tennessee?
You should research the rates for your competition and consider factors such as location, types of services offered, and average labor costs.
Do I need to have any specific cleaning certifications to start a cleaning business in Tennessee?
No, you don’t necessarily need any specific cleaning certifications to start a cleaning business in Tennessee.
Do I need to have a business plan to start a cleaning business in Tennessee?
It is highly recommended to create a business plan before starting any business in Tennessee.
How do I choose a name for my cleaning business in Tennessee?
Choose a name that is easy to remember and reflects the services you will provide.
How many employees can I have in my cleaning business in Tennessee?
There is no limit to the number of employees you can have in your cleaning business in Tennessee.
Are there any grants or funding options for starting a cleaning business in Tennessee?
Yes, Tennessee offers a variety of funding and support programs for small businesses, including cleaning businesses.
What type of cleaning equipment will I need for my cleaning business in Tennessee?
You will need cleaning supplies such as mops, brooms, vacuums, cleaning solvents, chemicals, and possibly a cleaning vehicle.
Can I start a cleaning business in Tennessee part-time?
Yes, you can start a cleaning business in Tennessee part-time while working a full-time job.
Is owning a cleaning business in Tennessee profitable?
Yes, owning a cleaning business in Tennessee can be profitable if you can provide quality cleaning services and price them competitively.
What marketing strategies are effective for cleaning businesses in Tennessee?
Some effective marketing strategies include creating a website, online directory listings, referrals, and social media marketing.
Can I franchise a cleaning business in Tennessee?
Yes, there are cleaning businesses that offer franchising opportunities in Tennessee.
How can I find cleaning contracts for my business in Tennessee?
You can find cleaning contracts by networking with local businesses, bidding on government contracts, advertising, and partnering with real estate agents.
How do I pay taxes for my cleaning business in Tennessee?
You will need to register for a tax identification number and pay corporate income tax and sales tax in Tennessee.
Can I clean firearms as part of my cleaning business in Tennessee?
No, cleaning firearms requires a federal firearms license, which is separate from a cleaning business license.
Do I need to have a website for my cleaning business in Tennessee?
No, but having a website can help increase your business’s visibility and credibility.
What types of residential cleaning services can I offer in Tennessee?
You can offer services such as deep cleaning, regular cleaning, move-in/move-out cleaning, and vacation rental cleaning for residential buildings in Tennessee?
What types of commercial cleaning services can I offer in Tennessee?
You can offer services such as janitorial cleaning, floor maintenance, and office cleaning for commercial buildings in Tennessee.
Can I offer eco-friendly cleaning services in Tennessee?
Yes, you can offer eco-friendly cleaning services to clients who prefer using environment-friendly solvents and cleaning supplies in Tennessee.
How can I expand my cleaning business in Tennessee?
You can expand your cleaning business in Tennessee by hiring more employees, partnering with other companies, offering additional services, and acquiring new customers through advertising.
How can I differentiate my cleaning business from others in Tennessee?
You can differentiate your cleaning business in Tennessee by offering competitive pricing, superior customer service, and specialized services.
Should I specialize in cleaning specific types of buildings in Tennessee?
Specializing in cleaning specific types of buildings in Tennessee can help you gain expertise in certain areas and attract more targeted customers.
Can I hire independent contractors to help with my cleaning business in Tennessee?
Yes, you can hire independent contractors to assist with your cleaning business in Tennessee.
Do I need to do background checks on employees in my cleaning business in Tennessee?
It is recommended that you do background checks on employees in your cleaning business in Tennessee to ensure safety and reduce liability.
Can I deduct cleaning business expenses from my taxes in Tennessee?
Yes, you can deduct certain business expenses from your taxes, such as equipment, advertising, and insurance.
Is it required to register for any safety guidelines or standards before starting a cleaning business in Tennessee?
Yes, businesses are required to comply with OSHA (Occupational Safety and Health Administration) standards as well as provide training for workers to maintain a safe and healthy work environment.
Can I start a cleaning business in Tennessee without any prior experience?
Yes, you can start a cleaning business in Tennessee without any prior experience.
Do I need a license to start a cleaning business in Tennessee?
Yes, you need to obtain a business license from the Secretary of State office in Tennessee to start a cleaning business.
What other legal procedures do I have to follow in Tennessee to start a cleaning business?
You need to register your business with the Department of Revenue in Tennessee to pay taxes, and obtain insurance for your business.
Are there any training programs available for starting a cleaning business in Tennessee?
Yes, there are several training programs available in Tennessee that can help you learn more about starting a cleaning business.
Is there any particular type of cleaning service in high demand in Tennessee?
Deep cleaning services are in high demand in Tennessee, especially in commercial establishments.
How much money should I invest in Tennessee to start a cleaning business?
The investment amount varies depending on the type of cleaning services you want to provide.
Do I need to hire employees to start a cleaning business in Tennessee?
No, you can start a cleaning business in Tennessee as a sole proprietor, without hiring any employees.
What marketing strategies can I use in Tennessee to promote my cleaning business?
You can use social media marketing, targeted advertising, and referrals from satisfied customers to promote your cleaning business in Tennessee.
Is it possible to start a cleaning franchise in Tennessee?
Yes, you can start a cleaning franchise in Tennessee, provided you have the necessary resources and investments.
What are some of the essential skills required to start a cleaning business in Tennessee?
You should have strong attention to detail, understanding of cleaning techniques, and the ability to manage time efficiently.
Is there any gender bias in the cleaning business in Tennessee?
No, the gender bias is negligible in the cleaning business in Tennessee, and it is open to everyone.
Can I get financing or a loan in Tennessee to start my cleaning business?
Yes, you can get financing or a loan from many banks and financial institutions in Tennessee to start your cleaning business.
Is technology an essential component of starting a cleaning business in Tennessee?
Yes, the use of modern technology in your cleaning business operations can improve efficiency and productivity.
Which banking institutions provide loans to small cleaning business owners in Tennessee?
Some well-known banks that operate in Tennessee and offer loans to small business owners are Bank of America, Wells Fargo, and First Tennessee Bank.
Is it easy to get customers for my cleaning business in Tennessee?
Yes, if you provide excellent cleaning services to your customers in Tennessee, you can build a steady client base quickly.
What types of cleaning equipment do I need to purchase to start my cleaning business in Tennessee?
You will require basic cleaning equipment such as cleaning agents, mops, vacuums, broomsticks, microfiber cloths, and dusters.
What are the common challenges faced by new cleaning businesses in Tennessee?
Some common challenges faced by new cleaning businesses in Tennessee include getting your name out into the market, recruiting workers, and staying ahead of the competition.
Do I need to have a business plan in Tennessee for my cleaning business to get funding from banks?
Yes, most banks and financial institutions require a business plan when you apply for a cleaning business loan.
Can I get insurance for my cleaning business in Tennessee?
Yes, you need to get general liability insurance and workers’ compensation insurance for your cleaning business in Tennessee.
Can I operate my cleaning business from my house in Tennessee?
Yes, you can operate your cleaning business from your house in Tennessee, provided you comply with all the zoning and permit requirements.
How long does it take to get a business license in Tennessee for a cleaning business?
The processing time for a business license depends on the type of business you are registering and other factors such as the time of submission, number of applications to process in a week.
Do I need to undergo any specific training to get insurance for my cleaning business in Tennessee?
No, you do not need any specific training to get insurance for your cleaning business in Tennessee, but having knowledge to put in relevant and effective procedures help identify and manage risks, protect your employees, and safeguard your customer’s property.
How much does it cost to obtain business insurance for a cleaning business in Tennessee?
The cost varies depending on the type of insurance coverage you need and other factors like the size of your business.
Can I get fast loans for my cleaning business in Tennessee?
Yes, some lending organizations in Tennessee offer fast loans to cleaning business owners while keeping in mind their timely finance needs.
After obtaining a cleaning license and registration from the state, am I allowed to work anywhere in Tennessee?
Yes, you will be able to offer services anywhere throughout Tennessee, provided you comply with all other related federal, state, and municipal laws and obligations.
What topics should I include in my company’s procedures and operational manual in Tennessee?
Staff-oriented documentation suitably checking expected conditioning, cleaning priorities, accessibility obstacles, delivering responsible handling of valuables or relative personal documents are some of the top policy areas that can be included in the company’s operational manual.
Do I need to have a prior understanding of the tennessee’s employment laws while choosing staff for my cleaning business?
Yes, understanding employment laws regulate labor in large Texas cities. Being aware of centralized and ruled laws under a precise perspective enable working contracts as a team, framing situational to motivational assurance attitudes regulated under seasonal elements (for example, pandemic-induced restrictions), etc.
Is it Better getting professional training in Tennessee before starting business, or each cleaning provider offers its specific assistance?
It depends on the section of cleaning services a volunteer had chosen for commercial representation and state guidelines to prepare and receive employer training on multiple grounds including but not limited to safety & maintenance management practices (ongoing cleaning processes), high-traffic areas, interpersonal conflict circumstances FAQs, traffic distraction periods, bulk product pricing, bookkeeping necessities, etc.
What to do if caught between a mixed opinion-serve business/ to subcontract off enough with team permissions and services in Tennessee?
Signing a give and take drafted with maximum liability but allocating appropriate insurance, cleaning establishment, routine contract, location confinements, schedule, mode of receiving contracts if niche hindrances arise. Suppose cooperating business includes low risk premium with an agile plan to increase flexibility, accept estimated pricing implications readily, act assertively defining the range but within company supervision at all costs.

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Conclusion

Starting a cleaning business in Tennessee 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 Tennessee.

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