Texas does not require a state-level cleaning license. You need a local business permit from your city. You also need a sales tax permit from the Texas Comptroller. If you hire workers, you need an Employer Identification Number. Texas has no state income tax, which makes starting a business simpler.
What Licenses Do You Need for a Cleaning Business in Texas?
Texas does not have a state cleaning license. But you still need a few permits to operate legally. The exact permits depend on your city and business type.
Here is what most cleaning businesses in Texas need:
- Local business permit — your city or county issues this to allow you to operate
- Sales tax permit — required by the Texas Comptroller for all taxable services
- Employer Identification Number — needed if you hire workers or form a business entity
- Assumed name certificate — required if your business name differs from your legal name
- Business entity filing — needed if you form a limited liability company or corporation
Required Versus Optional Permits
Some permits are required by law. Others are optional but helpful. This table shows the difference.
| Permit or License | Required? | Where to Get It |
|---|---|---|
| Local business permit | Yes | City or county clerk office |
| Sales tax permit | Yes | Texas Comptroller website |
| Employer Identification Number | Yes, if hiring | Internal Revenue Service website |
| Assumed name certificate | Yes, if using a trade name | County clerk office |
| Limited liability company filing | Optional | Texas Secretary of State |
| General liability insurance | Optional but recommended | Any business insurance provider |
Texas has no state income tax. This means you keep more of what you earn. You only pay federal income tax and self-employment tax on your profits.
Do You Need a Sales Tax Permit in Texas?
Yes. Texas charges sales tax on cleaning services. You must collect sales tax from your clients and send it to the state.
The state sales tax rate is 6.25 percent. Local taxes can add up to 2 percent more. Most areas charge a total of 8.25 percent.
How to Get a Sales Tax Permit
- Go to the Texas Comptroller website
- Click on the sales tax permit section
- Fill out the online form with your business details
- Submit the form and wait for your permit number
The sales tax permit is free. There is no cost to apply. You will get your permit number within a few business days.
When to File Sales Tax Returns
The Texas Comptroller sets your filing schedule. Most new businesses file every three months. High-volume businesses may file every month.
You must file on time even if you owe zero tax. Late filings can lead to penalties and fees.
What Insurance Is Required for Cleaning Businesses in Texas?
Texas does not require general liability insurance by law. But most clients will ask if you have it. Going without insurance puts your personal money at risk.
Types of Insurance You Need
- General liability insurance — covers damage to client property and injury claims
- Workers compensation insurance — covers your employees if they get hurt on the job
- Commercial auto insurance — covers your vehicle if you drive to job sites
- Bonding — protects clients against theft by your workers
How Much Does Insurance Cost?
General liability insurance costs $300 to $600 per year for a small cleaning business. Workers compensation costs depend on your payroll amount. A surety bond costs $100 to $300 per year.
Many providers bundle these into one policy. A bundle often saves you 10 to 20 percent. Read our full cleaning business insurance guide for more details.
Texas does not require workers compensation insurance. But if an employee gets hurt, you could face a large lawsuit. Most business owners choose to carry it anyway.
Do You Need an Employer Identification Number in Texas?
You need an Employer Identification Number if you hire workers. You also need one if you form a limited liability company or corporation. Sole owners with no employees can use their Social Security number instead.
How to Get an Employer Identification Number
- Visit the Internal Revenue Service website
- Click on the Employer Identification Number section
- Answer the questions about your business type
- Get your number right away after you finish
The process is free and takes about ten minutes. You get your number as soon as you finish the online form.
Why You Should Get One Even If Not Required
An Employer Identification Number protects your Social Security number. You use it on tax forms, contracts, and bank accounts. This keeps your personal number private.
Most banks require one to open a business bank account. It also makes your business look more professional to clients.
What Are Local Permit Requirements in Major Texas Cities?
Each Texas city has its own permit rules. Some cities require more paperwork than others. Check with your local city hall for exact details.
| City | Permit Needed | Cost | Where to Apply |
|---|---|---|---|
| Houston | No city business license required | Free | Not applicable |
| Dallas | Business registration required | $50 to $100 | Dallas City Hall |
| Austin | Business permit required | $50 to $200 | Austin Development Services |
| San Antonio | Business registration required | $50 to $150 | San Antonio City Clerk |
| Fort Worth | Business registration required | $50 to $100 | Fort Worth City Hall |
| El Paso | Business permit required | $25 to $100 | El Paso City Clerk |
Houston is the easiest city to start in. It does not require a city business license. Dallas, Austin, and San Antonio all need some form of business registration.
Always call your local city hall before you start. Rules can change, and you want to be sure you have the right permits.
How Much Do Texas Cleaning Business Licenses Cost?
Starting a cleaning business in Texas is affordable. Most permits are cheap or free. Here is a full cost breakdown.
| Item | Cost |
|---|---|
| Sales tax permit | Free |
| Employer Identification Number | Free |
| Local business permit | $25 to $400 |
| Assumed name certificate | $25 to $50 |
| Limited liability company filing | $300 |
| General liability insurance | $300 to $600 per year |
| Surety bond | $100 to $300 per year |
A sole owner can start for under $100 in many Texas cities. If you form a limited liability company, add $300 for the state filing fee.
See our Texas cleaning business pricing guide for help setting your service rates.
What Are the Doing Business As Name Requirements in Texas?
Your business name may differ from your legal name. If so, you must file an assumed name certificate. Texas calls this a Doing Business As filing.
This filing lets the public know who owns the business. It is a simple form you submit to your county clerk.
How to File an Assumed Name Certificate
- Choose a business name that is not already taken
- Go to your county clerk office or website
- Fill out the assumed name certificate form
- Pay the filing fee, usually $25 to $50
- Keep a copy of the certificate for your records
Do You Need to Check if the Name Is Available?
Yes. Search the Texas Secretary of State website first. Make sure no one else is using your chosen name.
You should also check for matching website domains. Pick a name that is easy to spell and remember.
What Are the Renewal and Compliance Deadlines?
Permits and filings do not last forever. You must renew them on time to stay legal. Missing a deadline can lead to fines or losing your permits.
Key Renewal Dates
- Sales tax returns — due monthly or every three months, based on your filing schedule
- Assumed name certificate — valid for ten years in Texas, then must be renewed
- Limited liability company franchise tax — no annual report is needed, but you must file a franchise tax return yearly
- Insurance policies — renew each year before they expire
- Local business permits — most cities require yearly renewal
Texas Franchise Tax
Every Texas business entity must file a franchise tax report each year. The report is due on May 15. Most small cleaning businesses owe zero tax because of the no-tax-due threshold.
If your total revenue is below $2.47 million, you likely owe nothing. But you still must file the report. Failure to file can cause the state to end your business entity.
Ready to launch your cleaning business? Read our full guide on how to start a cleaning business in Texas. It covers everything from your first steps to your first clients.