Do You Need a License to Start a Cleaning Business in California?

California does not require a special cleaning license for most house cleaning businesses. However, you do need a business license from your city or county, a seller's permit if you sell products, and an Employer Identification Number if you hire workers. Some cities like Los Angeles and San Francisco have extra permit requirements.

What Licenses Do You Need for a Cleaning Business in California?

California keeps it simple for cleaning businesses. You do not need a state-level cleaning license. But you do need a few basic permits to operate legally.

Here is a list of the most common requirements:

  • City or county business license — required in almost every California city
  • Fictitious business name statement — needed if you use a name other than your own legal name
  • Seller's permit — required if you sell cleaning products to clients
  • Employer Identification Number — required if you hire employees
  • Workers' compensation insurance — required by California law if you have employees
  • General liability insurance — not required by law but expected by most clients

Required Versus Optional Permits

Not every permit applies to every cleaning business. The table below shows what you need based on your situation.

Permit or License Required? Who Needs It
City business license Yes All cleaning businesses
Fictitious business name Yes, if using a trade name Anyone not using their legal name
Seller's permit Only if selling products Businesses that sell cleaning supplies
Employer Identification Number Yes, if hiring Businesses with employees
Workers' compensation insurance Yes, if hiring Businesses with one or more employees
General liability insurance No, but strongly recommended All cleaning businesses
Surety bond No, but recommended Businesses that want extra client trust
Getting Started

Need the full picture? Read our guide on how to start a cleaning business in California for step-by-step instructions.

Do You Need a Business License in California?

Yes. Almost every city and county in California requires a business license. This is true even if you work from home.

A business license gives you legal permission to operate. Without one, you may face fines or be shut down.

How to Get a City Business License

  1. Visit your city's website — find the business license section
  2. Fill out the application — you will need your name, address, and business type
  3. Pay the fee — most cities charge between $50 and $300 per year
  4. Receive your license — some cities issue it the same day

Do You Need a Fictitious Business Name?

If your business uses any name other than your legal name, yes. California calls this a fictitious business name statement. Some people call it a Doing Business As name.

You file this with your county clerk's office. The fee is usually $10 to $80. You must also publish the name in a local newspaper.

What Is a Seller's Permit and Do Cleaning Businesses Need One?

A seller's permit lets you collect sales tax in California. The California Department of Tax and Fee Administration issues these permits for free.

Most cleaning services do not need one. Cleaning labor is not taxable in California.

When You Do Need a Seller's Permit

You need a seller's permit if you sell products to clients. For example, if you sell cleaning sprays or air fresheners, you must collect sales tax. You also need one if you buy supplies at wholesale prices.

Getting a seller's permit is free. You can apply online through the California Department of Tax and Fee Administration website.

What Insurance Is Required for Cleaning Businesses in California?

California law does not require general liability insurance for cleaning businesses. But most clients will not hire you without it. Insurance protects you from costly lawsuits and damage claims.

General Liability Insurance

This covers damage to a client's property. It also covers injuries that happen during a job. Most cleaning businesses pay $30 to $60 per month for this coverage.

A typical policy covers $1 million per incident and $2 million total. Read our full cleaning business insurance guide for more details.

Workers' Compensation Insurance

California law requires workers' compensation insurance if you have employees. This is not optional. It covers medical bills and lost wages if a worker gets hurt on the job.

The cost depends on your payroll and the type of work. Most cleaning businesses pay $1 to $3 per $100 of payroll.

Surety Bond

A surety bond is not required by law. But it gives clients extra peace of mind. A bond protects clients if an employee steals or causes damage. Most bonds cost $100 to $300 per year.

Do You Need an Employer Identification Number in California?

You need an Employer Identification Number if you hire workers. The Internal Revenue Service issues this number for free. You can apply online and get it right away.

You also need one if you form a limited liability company or a corporation. Sole owners who work alone can use their Social Security number instead.

How to Get an Employer Identification Number

  1. Go to the Internal Revenue Service website — find the online application
  2. Answer the questions — about your business type and structure
  3. Get your number instantly — it is issued right after you finish

There is no fee. The whole process takes about 10 minutes.

What Are the Local Permit Requirements in Major California Cities?

Each California city has its own rules. Some cities are simple. Others have extra steps and higher fees.

The table below shows requirements for the five largest cities.

City Business License Fee Extra Requirements
Los Angeles About $172 per year Business tax registration, zoning clearance for home-based businesses
San Francisco About $91 for small businesses Business registration, payroll expense tax if you have employees
San Diego About $34 to $125 per year Business tax certificate, home occupation permit if working from home
Sacramento About $50 to $100 per year Business operations tax, possible zoning review
San Jose About $150 per year Business license tax based on gross receipts, home occupation permit

Tips for Local Permits

  • Check your city's website first — requirements change often
  • Call the city clerk's office — they can walk you through the steps
  • Ask about home-based rules — some cities need a home occupation permit
  • Keep copies of everything — store your permits in a safe place

How Much Do California Cleaning Business Licenses Cost?

The total cost to get licensed depends on your city and business structure. Most cleaning businesses spend $200 to $800 to get fully set up.

Here is a breakdown of common costs:

Item Cost Frequency
City business license $50 to $300 Yearly
Fictitious business name filing $10 to $80 Every 5 years
Newspaper publication $30 to $100 One time with each filing
Seller's permit Free One time
Employer Identification Number Free One time
General liability insurance $30 to $60 per month Monthly or yearly
Workers' compensation insurance $1 to $3 per $100 of payroll Ongoing
Surety bond $100 to $300 Yearly
Pricing Help

Want to know what to charge clients? See our guide on cleaning business prices in California to set the right rates for your area.

What Are the Renewal and Compliance Deadlines?

Most licenses and permits need regular renewal. Missing a deadline can lead to late fees or a lapsed license. Here is a timeline to follow.

Task When to Do It What Happens If You Miss It
Renew city business license Yearly, by your renewal date Late fees of $25 to $100 or more
Renew fictitious business name Every 5 years You lose the right to use that name
File state tax returns Quarterly or yearly Penalties and interest charges
Pay workers' compensation premiums Monthly or quarterly Fines up to $10,000 or more per employee
Renew general liability insurance Yearly No coverage if a claim happens
File sales tax returns (if applicable) Quarterly Penalties and loss of seller's permit

How to Stay on Track

  • Set calendar reminders — add alerts 30 days before each deadline
  • Keep a compliance folder — store all permits and renewal dates in one place
  • Use business management software — tools like MaidProfit help you track deadlines
  • Check with your city each year — rules and fees can change
Stay Organized

Running a cleaning business means tracking permits, clients, and payments. Try MaidProfit to manage it all in one place.

California Licensing Frequently Asked Questions

Do you need a license to clean houses in California?
California does not require a special cleaning license. However, you do need a business license from your city or county. You may also need a seller's permit and an Employer Identification Number if you hire workers.
How much does a cleaning business license cost in California?
Business license fees range from $50 to $500 per year. It depends on your city. Los Angeles charges about $172 per year. San Francisco charges around $91 for small businesses. Most small cities charge $50 to $150.
Do California cleaning businesses need insurance?
General liability insurance is not required by law. But most clients will not hire you without it. If you have employees, workers' compensation insurance is required by California law.
Do I need a seller's permit for a cleaning business in California?
You need one only if you sell cleaning products to clients. Basic cleaning services are not taxable in California. If you sell supplies or add-on products, you must collect sales tax.
What is a Doing Business As name and do I need one?
A Doing Business As name lets you use a name different from your legal name. In California, you file a fictitious business name statement with your county clerk. This is required if your business name differs from your personal name.
How often do you renew a California business license?
Most California cities require yearly renewal. Some cities send a renewal notice by mail. Others require you to renew online. Mark your calendar so you do not miss the deadline.

Start Your California Cleaning Business

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