Pennsylvania does not require a special state cleaning license. You must register your business with the Pennsylvania Department of State. You also need a local business privilege license and state tax registration. Philadelphia has extra business requirements compared to other Pennsylvania cities.
What Licenses Do You Need for a Cleaning Business in Pennsylvania?
Pennsylvania keeps things simple for cleaning businesses. There is no state cleaning license or permit required.
But you still need to complete a few steps. Here is what every cleaning business owner must do:
- Register your business name — file a fictitious name registration if you use a trade name
- Form a business entity — register as a sole proprietorship, limited liability company, or corporation with the Pennsylvania Department of State
- Get a federal Employer Identification Number — apply for free through the Internal Revenue Service website
- Get a local business privilege license — most cities and townships require one
- Register for state taxes — sign up with the Pennsylvania Department of Revenue
Want a full startup guide? Read our guide on how to start a cleaning business in Pennsylvania. It covers everything from planning to your first client.
How Do You Register Your Business in Pennsylvania?
Registration is a simple process. Follow these steps to get started.
Choose Your Business Structure
Most cleaning businesses start as a sole proprietorship. This is the easiest and cheapest option. You do not need to file any forms with the state.
A limited liability company gives you personal asset protection. It costs $125 to file with the Pennsylvania Department of State.
Register Your Business Name
If you use any name besides your legal name, you must file a fictitious name registration. You file this with your county courthouse. The filing fee is $70.
Get Your Federal Employer Identification Number
This number works like a social security number for your business. You need it to open a bank account. You also need it to file business taxes.
Apply for free on the Internal Revenue Service website. You get your number right away.
Register With the Pennsylvania Department of Revenue
You must register for state tax accounts. Use the online business registration system. This is free and takes about 15 minutes.
What Taxes Do Cleaning Businesses Pay in Pennsylvania?
Pennsylvania has several taxes that apply to cleaning businesses. Here is what you need to know.
State Income Tax
Pennsylvania has a flat income tax rate. All business income is taxed at this rate. You report your earnings on your state tax return each year.
Sales Tax
This is where it gets important. Residential cleaning services are not taxable in Pennsylvania. You do not charge sales tax for house cleaning.
Commercial cleaning services are taxable. If you clean offices or businesses, you must collect sales tax.
The state sales tax rate is 6 percent. Philadelphia adds 2 percent. Allegheny County adds 1 percent.
Local Earned Income Tax
Every municipality in Pennsylvania has a local earned income tax. Rates range from 1 to 3.1 percent. This tax applies to all business income earned in that area.
Business Privilege Tax
Some cities charge a business privilege tax on your gross receipts. Philadelphia is the most notable example. Check with your local tax office for details.
Keep residential and commercial cleaning income separate. You only collect sales tax on commercial jobs. Good bookkeeping saves you money and trouble at tax time.
What Insurance Is Required for Cleaning Businesses in Pennsylvania?
Insurance protects you and your clients. 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 to client property. It also covers injuries that happen during a job.
Most policies cost $400 to $800 per year. Read our full cleaning business insurance guide for more details.
Workers' Compensation Insurance
Pennsylvania law requires this if you have employees. It covers medical bills and lost wages if a worker gets hurt on the job. Even one employee triggers this requirement.
Costs vary based on your payroll and claims history. Expect to pay $500 to $1,500 per year for a small team.
Commercial Auto Insurance
If you use a vehicle for your business, you need this policy. Personal auto insurance does not cover business use. A basic policy starts around $1,200 per year.
Bonding
A surety bond is not required by law. But many clients prefer bonded cleaners.
A $10,000 bond costs about $100 to $300 per year. It shows clients you are trustworthy.
What Are the Extra Requirements in Philadelphia?
Philadelphia has its own rules on top of state requirements. The city is stricter than most Pennsylvania cities.
Commercial Activity License
Every business in Philadelphia needs this license. You apply through the city's business services portal. The fee depends on your business type.
Business Income and Receipts Tax
Philadelphia charges a tax on gross receipts. This is separate from state taxes. You must file this return each year even if your income is low.
Philadelphia Wage Tax
If you have employees in Philadelphia, you must withhold city wage tax. This applies to all wages earned in the city. The rate is higher for non-residents who work in the city.
Zoning Approval
If you run your business from home in Philadelphia, check your zoning. Some areas do not allow home-based businesses. You may need a zoning permit to operate legally.
What Are Local Permit Requirements in Major Pennsylvania Cities?
Each city has its own permit rules. Here is a breakdown of what you need in the biggest cities.
| City | Business License | Local Tax Registration | Special Notes |
|---|---|---|---|
| Philadelphia | Commercial Activity License | Business Income and Receipts Tax | City wage tax, zoning approval may be needed |
| Pittsburgh | Business privilege license | Local earned income tax | Allegheny County adds 1 percent sales tax |
| Allentown | Business privilege license | Local earned income tax | Home occupation permit if home-based |
| Harrisburg | Business privilege license | Local earned income tax | Dauphin County registration |
| Erie | Business privilege license | Local earned income tax | Erie County mercantile tax may apply |
| Reading | Business privilege license | Local earned income tax | Berks County business registration |
Always check with your local municipality for the latest rules. Requirements can change at the local level.
How Much Do Pennsylvania Cleaning Business Licenses Cost?
Here is a breakdown of the costs you can expect. Prices may vary by location.
| Item | Cost | Notes |
|---|---|---|
| Limited liability company filing | $125 | One-time fee to the Pennsylvania Department of State |
| Fictitious name registration | $70 | Filed at your county courthouse |
| Federal Employer Identification Number | Free | Apply online through the Internal Revenue Service |
| State tax registration | Free | Register with the Department of Revenue |
| Local business privilege license | $50 to $300 | Varies by city and township |
| Philadelphia Commercial Activity License | $300 | Required for all Philadelphia businesses |
| General liability insurance | $400 to $800 per year | Highly recommended for all cleaning businesses |
| Workers' compensation insurance | $500 to $1,500 per year | Required if you have employees |
| Surety bond | $100 to $300 per year | Optional but builds client trust |
Your total startup cost for licenses and registration is roughly $200 to $600. Insurance and bonding add to your yearly costs.
Check our Pennsylvania cleaning business pricing guide to set rates that cover these costs.
What Are the Renewal and Compliance Deadlines?
Staying compliant means keeping your registrations current. Here are the key deadlines to track.
| Item | Renewal Period | Deadline |
|---|---|---|
| Limited liability company annual report | Every year | Due by the anniversary of your filing date |
| Local business privilege license | Every year | Varies by municipality, often January 1 |
| State tax filing | Every year | April 15 for most businesses |
| Sales tax return (if applicable) | Monthly, quarterly, or yearly | Based on your filing frequency |
| Workers' compensation insurance | Every year | Before your current policy expires |
| Philadelphia Commercial Activity License | Every year | Check the city website for due date |
| General liability insurance | Every year | Before your current policy expires |
Set calendar reminders 30 days before each deadline. Late renewals can result in fines or loss of your license.
Use cleaning business software to track deadlines and manage your business. It keeps all your important dates in one place.