Do You Need a License to Start a Cleaning Business in North Carolina?

North Carolina does not require a special state cleaning license. You must register with the Secretary of State and get local permits. Charlotte and Raleigh have different rules from smaller cities.

What Licenses Do You Need for a Cleaning Business in North Carolina?

North Carolina keeps things simple for cleaning businesses. The state does not require a special cleaning license or permit.

However, you still need a few things to operate legally. Here is what you must have:

  • Business registration — file with the North Carolina Secretary of State
  • Local business license — most cities and counties require one
  • Tax registration — register with the North Carolina Department of Revenue
  • Employer Identification Number — get this free from the Internal Revenue Service
  • Insurance — general liability is strongly recommended for all cleaners

The exact steps depend on your city. Charlotte and Raleigh have more rules than smaller towns.

How Do You Register Your Business in North Carolina?

You must register your business with the state before you start working. The process depends on your business type.

Choose Your Business Structure

Most cleaning businesses choose one of two structures. Each one has different rules.

  • Sole proprietorship — the simplest option with no state filing needed
  • Limited liability company — protects your personal assets from business debts

A limited liability company costs $125 to file. Most cleaning business owners choose this option. It keeps your home and savings safe if someone sues your business.

File With the Secretary of State

To form a limited liability company, file Articles of Organization. You can do this online at the Secretary of State website.

Processing takes a few business days for standard filing. You can pay $100 extra for 24-hour processing. Same-day processing costs $200 extra.

Get a Doing Business As Name

If you use a name different from your legal name, you need to register it. This is called a Doing Business As name. File this with your county Register of Deeds office.

Full Startup Guide

Want a complete step-by-step walkthrough? Read our guide on how to start a cleaning business in North Carolina.

What Taxes Do Cleaning Businesses Pay in North Carolina?

North Carolina has a flat state income tax rate. Cleaning services are not subject to sales tax. This makes tax planning simple.

State Income Tax

North Carolina uses a flat income tax rate. All business income is taxed at the same percentage. The rate has been dropping in recent years.

You report your business income on your personal tax return. A limited liability company is a pass-through entity for taxes.

Sales Tax on Cleaning Services

Good news for cleaners. North Carolina does not charge sales tax on cleaning services. You do not need to collect sales tax from your clients.

This applies to house cleaning, office cleaning, and janitorial work. You still must register with the Department of Revenue.

Employer Taxes

If you hire employees, you must pay extra taxes. These include state unemployment insurance and federal payroll taxes.

You must withhold state income tax from employee paychecks. Register for employer accounts with the Department of Revenue.

What Insurance Is Required for Cleaning Businesses in North Carolina?

Insurance protects your business from accidents and lawsuits. Some types are required by law. Others are strongly recommended.

General Liability Insurance

This is the most important policy for any cleaning business. It covers damage you cause to a client's property. It also covers injuries on the job site.

Most policies cost $300 to $600 per year for a small cleaning business. Many clients require proof of insurance before hiring you.

Workers' Compensation Insurance

North Carolina law requires this if you have three or more employees. This includes part-time, full-time, and seasonal workers.

Workers' compensation covers medical bills if an employee gets hurt at work. The North Carolina Industrial Commission oversees this program. Sole owners and limited liability company members may exempt themselves.

Other Recommended Insurance

  • Commercial auto insurance — covers your vehicle while driving to jobs
  • Bonding — protects clients if an employee steals or causes damage
  • Business Owner's Policy — bundles general liability with property coverage
Insurance Deep Dive

Learn exactly what coverage you need and how much it costs. Read our full cleaning business insurance guide.

Do You Need an Employer Identification Number in North Carolina?

Yes, most cleaning businesses need an Employer Identification Number. The Internal Revenue Service issues this number for free.

When Do You Need One?

You need an Employer Identification Number if any of these apply:

  • You have employees — required for payroll and tax reporting
  • You formed a limited liability company — needed for tax filings
  • You open a business bank account — most banks require one
  • You file business tax returns — used to identify your business

How to Apply

Apply online at the Internal Revenue Service website. The process takes about five minutes. You get your number right away.

There is no cost to apply. It is completely free. You can also apply by mail or fax if you prefer.

What Are Local Permit Requirements in Major North Carolina Cities?

Each city in North Carolina has its own rules. Some cities require a business license. Others have extra permits or zoning rules.

Here is what you need in the six largest cities:

City License Required Where to Apply Notes
Charlotte Yes Mecklenburg County Business privilege license required
Raleigh Yes Wake County Business registration with the city
Greensboro Yes Guilford County Privilege license from the city
Durham Yes Durham County Business privilege license required
Winston-Salem Yes Forsyth County City business license needed
Asheville Yes Buncombe County Business license from the city

Always check with your local city or county office. Rules can change. Call your city clerk to confirm current requirements.

Home-Based Business Rules

Many cleaners run their business from home. Most North Carolina cities allow this. You may need a home occupation permit.

Rules often limit signage and client visits to your home. Check your city zoning office for details.

How Much Do North Carolina Cleaning Business Licenses Cost?

Starting a cleaning business in North Carolina is affordable. Here is a breakdown of all the costs you can expect.

Item Cost Notes
Limited liability company filing $125 One-time fee to the Secretary of State
Doing Business As name $26 Filed with your county Register of Deeds
Employer Identification Number Free Apply online at the Internal Revenue Service
Local business license $25 to $100 Varies by city and county
General liability insurance $300 to $600 per year Depends on coverage amount
Annual report filing $200 to $203 Due each year by April 15
Bonding $100 to $300 per year Optional but builds client trust

Total startup costs range from $200 to $600. This does not include supplies and equipment. North Carolina is one of the more affordable states to start a cleaning business.

Pricing Help

Need help setting your rates? Check our North Carolina cleaning business pricing guide for local rates.

What Are the Renewal and Compliance Deadlines?

Keeping your business legal means meeting deadlines every year. Here are the key dates to remember.

Task Deadline Where to File
Annual report for limited liability company April 15 each year Secretary of State
State income tax return April 15 each year Department of Revenue
Local business license renewal Varies by city Your city or county office
Quarterly payroll tax filings End of each quarter Internal Revenue Service and state
Workers' compensation renewal Before policy expires Your insurance provider
General liability renewal Before policy expires Your insurance provider

What Happens If You Miss a Deadline?

Missing your annual report can cost you extra fees. The state may also dissolve your limited liability company. Set reminders for every deadline.

Late tax filings come with penalties and interest charges. File on time to avoid extra costs.

Stay Organized

Keep a calendar with all your renewal dates. Set reminders at least 30 days before each deadline. This gives you time to gather documents and file.

North Carolina Licensing Frequently Asked Questions

Do you need a license to clean houses in North Carolina?
North Carolina does not require a special state cleaning license. You need to register your business with the Secretary of State. You also need any local permits your city requires. Some cities require a business privilege license.
How much does a cleaning business license cost in North Carolina?
Total startup costs range from $200 to $600. A limited liability company filing costs $125. Local business licenses range from $25 to $100. An Employer Identification Number is free from the Internal Revenue Service.
Do cleaning businesses in North Carolina pay sales tax?
No. Cleaning services are not subject to sales tax in North Carolina. You do not need to collect sales tax from your clients. You still must register with the Department of Revenue for income tax.
What insurance do North Carolina cleaning businesses need?
You need general liability insurance at a minimum. If you have three or more employees, state law requires workers' compensation insurance. Most cleaners also carry a commercial auto policy and bonding.
Do I need an Employer Identification Number for my cleaning business?
Yes, if you have employees or run a limited liability company. Apply for free on the Internal Revenue Service website. The online process takes about five minutes.
What are the local permit requirements in Charlotte?
Charlotte requires a business privilege license from Mecklenburg County. You also need to register with the city. The cost is around $50 to $100 depending on your business size.

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