Legal and Financial Considerations of Starting a Cleaning Business

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If you are thinking of starting a cleaning business, it is important to understand the legal and financial considerations to ensure success throughout the duration of the business.

Every kind of business has its own set of legal considerations. If you think that starting a cleaning business in San Diego either for offices or at home excludes from having legal considerations then you are wrong. The set of legal considerations include choosing appropriate business entity, securing any required licenses or permits, proper way to deal with health and safety, marketing and advertising, creating policy statements and contracts, applying of insurance, and handling employees. For this article, we will explain the details of each consideration.

Determining the Business Entity 

I assume you know that you could operate your cleaning business either as a sole proprietorship or partnership. Regardless of the ownership type, you must consider using a legal form that protects you from personal liability like a corporation or a limited liability company. Your business will most likely operate in other people’s offices or homes and you likely will handle employees that engage in a significant amount of physical activity.

Licenses and Permits 

If you happen to choose to operate as a sole proprietor, you should obtain a federal tax ID number, known as an Employer Identification Number (EIN). The process is hassle free and can even be done online. It is also important for you to check with your local government office and federal Small Business Administration.

Health and Safety

We all know that cleaning offices or homes is not that dangerous but the people doing it may be working with cleaning supplies that are kind of toxic and sometimes accident are inevitable. The Occupational Safety and Health Administration (OSHA) has regulations when it comes to safety and protection.

Advertising 

This is important especially for new businesses. You have to build and establish good image. In today’s generation, most advertising are being made online because it reaches out wider audience.

Policy Statements and Contracts

Every customer is different and may have different ideas about the specific services your cleaning business will provide.  is in your own interest to make clear in advance—in writing—what you will and won’t do for your clients. If you have a website, you should post your policies there.

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