Cleaning is your passion, and you have become an expert in your calling. Cleaning itself brightens up space, makes it more organized, and creates a sense of calm amongst all those who dwell in the space.
If you live in Indiana and want to be a part of this movement by becoming an entrepreneur, ask yourself these 6 questions as you open your cleaning business in Indiana.
- Choose your Indiana cleaning business name.
- Register, license, and ensure your Indiana cleaning business.
- Select a business structure for your Indiana cleaning business for tax purposes.
- Apply for a cleaning business checking account at an Indiana bank.
- Decide if you want to do your own taxes for your Indiana cleaning business or hire an account.
- Set service rates for your Indiana cleaning business.
While it may take a couple of months or more to get everything finalized, work on other steps while you are waiting on one to be approved. For example, as you wait for registration with the Secretary of State to be approved, open your business checking account, and so forth.
Choose Your Indiana Cleaning Business Name
Thinking of a business name may be one of the most difficult procedures when becoming an entrepreneur in any industry. When it comes to brainstorming the perfect name for your Indiana cleaning business, think of what your clients want in a cleaning company.
Look to Your Competition For Examples
Browse the names of other Indiana based cleaning businesses to get an idea of their names, how long they are, and the language tactics used in the name. Ideal cleaning business names are anywhere between 3-5 words long. For those who are a Limited Liability Company (LLC), this is included at the end of the name with 3-4 words before it.
Christina’s Complete Clean in Indianapolis, Indiana uses alliteration to make the name compelling and memorable to clients.
Classic Care Cleaning Services LLC also based in Indianapolis, Indiana uses the same alliteration tactic to make their business title sound interesting and spark the client’s interest in wanting to learn more about their cleaning services.
Maid Brigade of Indianapolis uses rhyme to get clients to remember the name and build a desire to want to maintain customer loyalty.
Queen Bee Cleaners LLC in Indiana also uses the same rhyming tactic.
Be Creative, Be You
As you think of your business name, don’t forget to:
- Have it include a key cleaning term.
- Choose a language tactic (alliteration, assonance, rhyming, puns) to make the name memorable.
- Be sure that the name is not already in the state of Indiana.
Register, License, and Insure Your Indiana Cleaning Business
Having your cleaning business in Indiana become registered, licensed, and insured, will be the longest part of the process. These 3 key components will help your business to operate legally in the state of Indiana and in the United States as a whole.
Indiana (IN.gov) Will Help Your Cleaning Business Get Started Using InBiz
INBiz is the state of Indiana’s entrepreneurial resource to get your cleaning business registered and licensed. When you sign up for this incredible resource, you will gain access to perks such as:
- Free use of the INBiz name search tool to help brainstorm your business name and see what is available to register for your Doing Business As application.
- Information about the Department of Workforce Management where you can post your cleaning business jobs on key websites such as IndianaCareerConnect.com.
- Resources to receive grants for your business.
- The ability to file needed government reports such as:
- A business entity report.
- Tax registration.
- Certificate of existence.
- Wage reporting.
- And more!
Register Your Indiana Cleaning Business
Follow this checklist to fully register your Indiana cleaning business.
- Conduct a name search using the INBiz Business Search tool to be sure that no business in your county or throughout the state of Indiana has the same business name.
- Register your business name using a Doing Business Application on the INBiz portal.
- Register your business with the Secretary of State. Your name is not guaranteed as able to be legally used until it has been approved by the Secretary of State.
- You must also register your business with the Department of Workforce Development.
- Manages your tax obligations.
- Satisfies your unemployment contribution tax.
- Helps with wage reporting of your employees to the government.
- If down the line you make more than $100,000 in revenue, you must register your business with the Indiana Department of Revenue.
License Your Indiana Cleaning Business
- Register for a general business license at your local City Clerk’s office.
- Depending on your city of operation in Indiana, you may not need a business license to get started.
- Check the Self Employed House Cleaner for a general list of Indiana cities to see which cities require a license and which do not. The mass majority of the popular Indiana cities do not require cleaning businesses to hold a business license.
- Apply for an Employer Identification Number (EIN) whether you decide to hire employees or not to make tax returns easier to do for yourself. Since you will have to file business tax returns or may have to hire employees, an EIN is required.
- Select your business structure.
- Provide legal information about your business
- Business name.
- Business structure.
- Enter your name information.
- State that your activity will be a cleaning business.
- Provide your corporate address.
- State when your business began.
- Provide contact information.
- Receive your EIN immediately after submission.
Ensure Your Indiana Cleaning Business
Maintain Your Indiana Cleaning Business
File the annual business entity report to keep your business current. You must do this every other year by the end of the month in which you had formed your business. If you fail to file this form before it is due, you will risk your business having to shut down temporarily for not being considered current in the state of Indiana.
Be sure to file your taxes annually and complete wage reporting as needed as well. Failing to do so will put your business at risk of debts that must be paid to the Internal Revenue Service (IRS).
Select a Business Structure for Your Indiana Cleaning Business for Tax Purposes
Start small by forming a tax structure such as a Sole Proprietorship, Partnership, or LLC. While you could incorporate it as a C-corp or S-corp, it is best to choose one of the 3 popular structure methods to keep it simple to come tax time for your small business.
- The easiest entity to achieve with little costs for registering and licensure.
- No paperwork or filing fees required to become a Sole Proprietor.
- You do not need to file a separate business tax form. The income from your Sole Proprietorship is a part of you as the individual.
- More liability on your personality as a cleaning business under Sole Proprietorship.
- Banks may think you will not repay business loans since you are the only person operating your business.
- Another person to help you with the business.
- Not as many tax forms as the taxes will pass through personally to you and the partner.
- Can both equally invest in start-up expenses?
- Equally split the profits with your partners.
- You and your partner are not separate from the business as an LLC.
Curious about opening businesses in other states? Check out this article: https://cleaningbusinessboss.com/how-to-run-a-commercial-cleaning-business-in-another-state/
Limited Liability Corporation (LLC)
- There is liability protection affiliating as an LLC, and your personal assets will not be affected if debts or lawsuits were to fall on your cleaning business.
- Earnings are reported on your own tax return like Sole Proprietorships.
- There is less paperwork involved with an LLC because it is more informal than corporations.
- You must pay a Self-Employment tax on your earnings for Medicare and Social Security.
- There is no guaranteed salary when affiliating with an LLC. Income for the members could be sporadic.
To access the business forms you need to structure your business in the state of Indiana, visit this link at IN.gov for special instructions. Please note that these Secretary of State forms cannot be used via insurance companies or financial institutions such as your business bank.
Learn more about the pros, cons, and differences between these business structures by visiting SCORE.org.
Apply for a Cleaning Business Checking Account at an Indiana Bank
The bank that you use will depend on what you perceive as the best business banking account perks. There are even sign-on bonuses for some of the name brand banks that you could consider getting more to funnel back into your business.
When you open a Business Checking or Business Checking Plus account with PNC and maintain a balance of $5,000 or more for the first 3 bank statements, you will get a $200 bonus. To qualify for the bonus, you must also make at least 20 or more qualifying transactions during those first 3 bank statements.
Open a Chase Business Complete Checking account to get a $300 bonus. Follow these steps to redeem the offer.
- Go to this link on the Chase website to enter your email to receive your offer code. https://account.chase.com/consumer/business/UU29277
- Once you open this account at your local branch, deposit $2,000 in new funds within the first 20 days of the account being open.
- Keep a $2,000 minimum balance during a 60 day period.
- Make 5 or more qualifying transactions with your Chase business checking debit card.
- Receive your $300 bonus once you have met all the qualifications.
Besides these brand name banks, you can also consider other bank names special to only Indiana for your business checking service such as:
- Fifth Third Bank
- First Source Bank
- Lake City Bank
- Huntington Bank
- And More!
Decide If You Want to Do Your Own Taxes for Your Indiana Cleaning Business or Hire an Accountant
If you are comfortable doing your own personal taxes, then you will be at ease filing your business taxes, too. Since you will be a Sole Proprietor, Partnership, or LLC, just use your EIN to file your taxes on your annual 1040 form.
You can do your taxes for free at irs.gov or use tax preparation websites such as TaxAct, TurboTax, TaxSlayer, or H&R Block.
It can be daunting to learn how to include your cleaning business information into your personal tax return. Hiring an accountant can put you at ease if you are not comfortable doing it yourself the first time around after just opening your business.
If you prefer, you can find a local tax preparer in the state of Indiana for a more personalized community experience when dealing with an accountant. Type in “tax preparers in Indiana” or “tax preparers near me” to start your search for an account.
Set Service Rates for Your Indiana Cleaning Business
According to Indy Maid Service, hourly rates for house cleaning services range from $20 to $65 per hour depending on the number of employees that are sent to clean the home. The size of the home being cleaned and the rooms that must be spruced can help your company to create a custom quote for your client that is fair and affordable.
For more inspiration on how to decide your hourly rates, visit this Indy Maid Service article.
Since there are more cleaning services than just house cleaning, consider doing a Google search of other businesses in your niche (janitorial, window washing, professional organizing, crime scene clean up) to create a competitive pricing strategy for your business.
Clean Up Your Checklist
You can say that going through this business opening checklist is almost like “cleaning”. You are sprucing up the requirements that you must fulfill in order to open your business. Every checkmark on the checklist is one step closer to achieving the start of your entrepreneurial journey.
Remember that INBiz is your destination for all these small businesses in the state of Indiana. They will be your go-to cleaning tools for being sure your business is legally operable and current.
How do I compute withholding taxes as a resident contractor?
Learn how to compute withholding taxes for the state of Indiana by visiting this link.
If I am a Sole Proprietor or in a Partnership, why should I open a separate bank account?
Even though your cleaning business earnings will be taxed on your individual tax return, you should get a separate business bank account. This will keep all the funds generated from your cleaning business and your personal funds from other sources allocated in their own accounts to make it easier during tax season.
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Get rolling on your way to becoming a cleaning business owner. Take a look at our startup documents to get started.