Starting a(n) Cleaning house Business Licenses & Tax IDs

Hi, I'm Talia Cleaning house
I have a cleaning business Bosscleaner we clean house we are located in Manchester we have 4 year experience we are an independent contractor

Good morning Talia, it's great to chat with you! I'm sorry to hear about your frustrating experience with government websites, but I'm here to help you n..., Talia.

Cleaning house

Hello Talia! Welcome to the exciting world of entrepreneurship! I'm here to help you get started with your house cleaning business. Here's a motivational success quote to get you pumped up: "Success is not final, failure is not fatal: it is the courage to continue that counts." - Winston Churchill Let's start by getting your business registered and licensed.

Selecting the Right Business Ownership Structure

Firstly, you need to decide on the legal structure for your business. As you mentioned, you can choose between a sole proprietorship, partnership, LLC or corporation. Each has its own benefits and drawbacks, so you need to weigh the pros and cons carefully. An LLC can be a great option because it provides personal asset protection while offering more flexibility than a corporation. Additionally, LLCs can elect to be taxed as an S corp to save on federal income tax. However, you should consult with a tax professional before making any decisions. The NAICS code for your business is 561720 for Janitorial services.

Business Licenses and Registrations

Next, you'll need to obtain the necessary business licenses and registrations. As you mentioned, you'll need a general business license, and you may also need a specific license for house cleaning depending on your location. If you plan to use a business name that is different from your personal legal name, you'll also need to file a DBA. Additionally, if you plan to sell tangible items, you'll need a state sales tax ID (sellers permit). If you plan to hire employees, you'll need to obtain a Federal EIN and a State EIN. You may also need workers' compensation insurance, depending on your location and the number of employees you have.

Startup Costs and Equipment

Starting a house cleaning business doesn't require a lot of capital, but you'll need some equipment and supplies. You may need a vacuum cleaner, cleaning products, mops, buckets, sponges, gloves, and other cleaning tools. You should shop around to find the best deals on equipment and supplies. Check out local wholesalers and online stores. Marketing costs can vary, depending on how you choose to promote your business. You could use social media, flyers, business cards, or paid advertising. Make sure you set aside some funds for marketing.

Pricing and Profit Margins

Pricing can be a tricky area to navigate, but you should aim to make a profit while remaining competitive in your market. You can charge by the hour, by the room, or by the square foot. You may also want to offer discounts for repeat business or referrals. As for profit margins, they can vary widely depending on your overhead costs, pricing strategy, and the number of clients you have. You should aim to make at least a 20% profit margin on your services, but that can fluctuate.

Employee Identification Numbers

If you plan to hire employees, you'll need to obtain a Federal EIN and a State EIN. The Federal EIN is used for tax purposes, and the State EIN is used for state tax purposes. You may also need workers' compensation insurance, depending on your location and the number of employees you have.

Good morning Talia, it's great to chat with you! I'm sorry to hear about your frustrating experience with government websites, but I'm here to help you navigate through the confusing world of business licenses and registrations.

As they say, "Success is not final; failure is not fatal: it is the courage to continue that counts." - Winston Churchill. So let's dive into your questions and get your house cleaning business up and running!

SELECTING YOUR BUSINESS STRUCTURE AND LICENSES

First things first, let's talk about selecting your business structure and licenses. The NAICS code for a house cleaning business is 561720. As you mentioned, you have a few options when it comes to selecting your business structure, including sole proprietorship, partnership, LLC, or corporation.

Each of these options comes with its own set of pros and cons, so it's important to do your research and determine which one is best for your business. No matter which structure you choose, you'll need to obtain a general business license, as well as any specific licenses or permits required in your state or municipality.

Additionally, if you're hiring employees, you'll need to obtain a Federal EIN and a State EIN. As for the cost of starting the business, it really depends on a variety of factors, including your location, equipment needs, and marketing strategy. However, you can expect to spend several thousand dollars to get started.

DBA AND SELLER'S PERMIT

If you're using a trade name that is different from your personal legal name, you'll need to file a DBA. This applies to your example of doing business as "Best Widgets By John" if your name is John Doe. As for the sales tax rate in your state, that varies depending on where you live.

You'll need to check with your state's department of revenue to determine the exact rate. If you're planning on selling merchandise or food related to your house cleaning business, you'll need to obtain a Seller's Permit, which allows you to buy items wholesale and sell them retail. This permit is required for any tangible items that can be touched, such as equipment or prepared food.

INSURANCE AND MARKETING

When it comes to insurance, it's important to protect your business and your clients by obtaining liability insurance. This can vary in cost depending on your location and the level of coverage you choose. As for marketing, there are a variety of low-cost options available to you, including social media advertising and word-of-mouth referrals.

COST OF EQUIPMENT AND PRICING

You mentioned that you already have your equipment and supplies, which is great! However, it's important to keep in mind that you'll need to regularly replenish your supplies, which can add up over time. As for pricing, you'll need to do some market research to determine the going rate for house cleaning services in your area. Generally, you can expect to charge anywhere from $25 to $50 per hour, depending on the size of the home and the level of cleaning required.

Finally, let's have some fun and come up with some humorous business names! How about "Clean as a Whistle", "Dirt Busters", or "Maid in the Shade"? Get creative and think of something that will make your potential clients chuckle.

I hope this information helps you get started on your house cleaning business journey, Talia! Remember, "The only place where success comes before work is in the dictionary." - Vidal Sassoon. Best of luck to you!

1. SELECT LLC, DBA, CORP

From sole propr., NH LLC, NH partneship or NH Corp.: Each requires an entity certificate filing.

2. TAX IDs - PERMITS

All Internet Business businesses/entities need a business license and an EIN.

3. NH STATE SALES TAX ID.

Selling/Buying wholesale or retail requires a NH seller's permit.

✔ Biz Structure

You can choose to be a(n) :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Acworth Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) business using a fictitious business name in Sullivan County i.e. you are a business with a trade name other than the owner's legal (full name) name are required to get a(n) fictitious business name. For instance you open a(n) business and you name it "Superior Group". You will need to file a fictitious business name for that name.

✔ Seller Permit

In addition note that in NH you may also need a seller's permit if you sell merchandise that is taxable. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a NH Federal Tax Id Number ($29) and a(n) NH State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Acworth, Incorporate in NH or form a(n) NH LLC .

You have a choice to file a DBA or form an LLC or incorporate. There is a cicrcumstance that you may not need to register a trade name and that is when you use your full name as a business name if you use your full legal name as a trade name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an llc or incorporate (about $49 plus state fees for most states) your business instead of just filing a fictitious business name (dba), it will help you avoid personal liability from wrongs arising from your business dealings and you will not have to file the Acworth business name. Instead of just registering your Sullivan County assumed business name (our fee includes assumed business name registration and legal newspaper publication) you can choose to setup a corporation in NH or form an NH LLC (starts @ $49 plus state fee for most states & includes required documents such as bylaws for the corporation and Limited Liability operating agreement for the LLC). .


Cleaning house NH Cleaning house NH Acworth