How to start a cleaning business in Alabama

February 7, 2023 in Business

Last Updated on February 23, 2023 by The ZenMaid Team

Why start a cleaning business in Alabama?

Cleaning businesses in Alabama can thrive with low labor costs and even lower tax burdens. Manufacturing is the largest industry in the state, which means there is a high demand for commercial cleaning services. 

This article will provide all the essential information you need to know on how to start a home cleaning company in the state of Alabama, including necessary permits, training for staff, equipment needed, insurance requirements, and more. Let’s get started!

Read this guide first: How to Start a Cleaning Business

For an overview and general guide, including a checklist, to starting a cleaning business, start here: How to Start a Cleaning Business in 10 Steps

We suggest you read that first if you haven’t already, then return to this guide to continue with the specific requirements for Alabama. 

Choose a Business Structure for your Cleaning Business 

This is an important step that cannot be skipped. Go here for more information on the different legal structures and which one to choose for your cleaning business.

Do I need a cleaning license in Alabama?

You do not need a state business license to start a cleaning business in Alabama; however, most counties require registration and filing. In this next section, we’ll share how to do that.

Apply for an EIN (Employer Identification Number) for Alabama

You can apply for an Employer Identification Number (EIN) for your home cleaning business in the state of Alabama by following these steps:

  1. Determine if you need an EIN: An EIN is a unique nine-digit number assigned by the IRS to identify a business for tax purposes. You may need an EIN if you have employees or if your business is a partnership or corporation.
  2. Gather the necessary information: To apply for an EIN, you will need your legal business name and address, as well as the name and Social Security number of a principal officer.
  3. Apply online: The quickest and easiest way to apply for an EIN is online through the IRS’s website. You can fill out the online application form and receive your EIN immediately.
  4. Apply by mail or fax: You can also apply for an EIN by mail or fax by completing Form SS-4 and sending it to the IRS. This process can take several weeks.
  5. Apply by phone: You can also apply by phone by calling the IRS Business & Specialty Tax Line at 1-800-829-4933.

Please make sure you have all the documents ready and also check the state laws in Alabama as well for any additional requirements.

Here are the steps for an online application:

  1. Visit the IRS website at www.irs.gov/businesses and select the option to “Apply for an EIN online.”
  2. Complete the online application form, providing information about your business, such as the name and address of the business, the type of business entity, and the name and Social Security Number of the business owner.
  3. Submit the application.
  4. Once your application has been processed, the IRS will provide you with your EIN.

File/Register your business with Alabama

The state of Alabama requires that all businesses register with the Department of Revenue. 

Registration costs range from $25 to $1,000. For a full list of costs, visit the Alabama Secretary of State  Fee Schedule. 

If you are filing an LLC, you need to file a business name and a Certificate of Formation. You can find those documents here. 

If you are filing as a Corporation, you will file a Domestic Business Corporation Certificate of Formation. For more instructions, visit the Secretaty of State’s business downloads resource. 

Business License Requirements in Alabama

Alabama does not require a business license for general house cleaning businesses. But as things often change, check with the state’s licensing needs when registering a new business. 

Be sure to also check with your individual county, city, or local municipality. Requirements can vary and some may need a general business tax, licensing, or other filing requirements for business. 

Call your local municipality office and inquire if this is required.

Get Business Insurance 

For a breakdown of why you need insurance, the different kinds of insurance to consider, plus the difference between insurance and bonding, read this guide first.

In the cleaning industry, business insurance is always worth it since you’re usually cleaning on someone else’s property. Don’t wait until it’s too late before you consider getting insurance for your business. At a minimum, make sure that you can’t be held personally liable for any property damage or if anything goes wrong when you’re on someone else’s property. Explore different small business insurance options in Alabama right here. 

Other Resources

Chamber Of Commerce Association Of Alabama

The ZenMaid Mastermind

Check these guides out next:

Ways to market your cleaning service for free

How to price your cleaning services 

Free cancelation policy templates

5 automations to grow your cleaning business (that cost less than $100/month)

Still have questions or looking for advice from a fellow cleaning business owner? Ask your question in The ZenMaid Mastermind

ZenMaid

Amar is the founder and CEO of ZenMaid Software, Inc. He started and ran Fast Friendly Spotless, a maid service in Orange County, CA. With the help of customized software to automate work he successfully operated the service in under 30 minutes per day. He created ZenMaid scheduling software to help other maid service owners do the same.

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