How to Start a Cleaning Business in Delaware: Complete Guide

Starting a cleaning business in Delaware typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in Delaware, including filing fees, licenses, insurance, labor laws, and local tips.

Why Start a Cleaning Business in Delaware?

Delaware is the corporate capital of America. More than one million businesses are filed here. The state is small, but its economy is strong and growing.

The biggest advantage for cleaning businesses is simple. Delaware has zero sales tax. You never charge or collect sales tax from your clients.

This makes your pricing easy. Your services feel cheaper to customers.

Delaware also has a low cost to start. The limited liability company filing fee is only $110. The state business license costs $75 per year.

These fees are lower than many nearby states.

Why Delaware Is Great for Cleaning Companies

Delaware offers several unique advantages for cleaning business owners. Here is why the First State is a smart place to start.

• Zero sales tax — Delaware is one of only five states with no sales tax. Your clients pay exactly what you quote. No extra charges at the end
• Business-friendly laws — Delaware is known worldwide for its business-friendly legal system. The state makes it easy to form and run a company
• Low startup costs — The $110 filing fee for a limited liability company is very affordable. Many nearby states charge much more
• Small state, less competition — Delaware has under one million people. This means fewer cleaning companies fighting for the same clients
• Strong seasonal demand — Beach resort towns like Rehoboth and Dewey create a huge summer cleaning market for vacation rentals
• Close to big cities — Delaware sits between Philadelphia and Baltimore. You can serve clients in both metro areas if you choose

How Do You Choose a Business Structure?

Your first decision is how to set up your business. Delaware offers two main choices for new cleaning companies.

Sole Proprietorship

This is the easiest way to start. You do not need to file anything with the state to begin. Delaware treats you as a sole proprietor when you start doing business.

If you want a business name, file a trade name with the Division of Corporations. This is also called a Doing Business As filing. It lets you operate under a name other than your own.

The downside is no personal protection. If a client sues your business, your personal savings and home are at risk.

Limited Liability Company

A limited liability company is the better choice for most cleaning businesses. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.

To form one in Delaware, file a Certificate of Formation. You do this through the Division of Corporations at corp.delaware.gov. The filing fee is $110.

You must also have a registered agent. This is a person or company with a physical address in Delaware. The agent receives legal papers on your behalf.

Registered agent services cost $50 to $300 per year.

Annual Franchise Tax

Every limited liability company in Delaware must pay an annual franchise tax of $300. This is due on June 1 each year. You pay this to the Division of Corporations.

It does not matter how much money your business makes. You owe $300 every year.

How Do You Get an Employer Identification Number and Tax Accounts?

An Employer Identification Number is a free number from the federal government. You need it to open a business bank account, file taxes, and hire workers.

Apply for free at the Internal Revenue Service website. You get your number right away when you apply online.

Delaware Has No Sales Tax

This is the biggest tax advantage in Delaware. The state has zero sales tax. You never collect sales tax from your clients.

This makes your billing simple and keeps your prices clean.

Your clients see exactly what they pay. There are no extra charges added on top. Your services feel more affordable than in nearby states like Pennsylvania or New Jersey.

Gross Receipts Tax

Instead of sales tax, Delaware uses a gross receipts tax. This is a tax on your total revenue. The rate for service businesses is 0.3983 percent.

The good news is that the first $100,000 per month is exempt. Most new cleaning businesses will not hit this limit. You likely owe nothing in gross receipts tax when you start out.

You must register for this tax with the Division of Revenue. Registration is required even if you do not owe anything yet.

State Income Tax

Delaware has a progressive state income tax. Rates range from zero to 6.6 percent. The top rate applies to income over $60,000.

Here are the key brackets:

• First $2,000 — 0 percent
• $2,000 to $5,000 — 2.2 percent
• $5,000 to $10,000 — 3.9 percent
• $10,000 to $20,000 — 4.8 percent
• $20,000 to $25,000 — 5.2 percent
• $25,000 to $60,000 — 5.55 percent
• Over $60,000 — 6.6 percent

What Licenses and Permits Do You Need?

Delaware does not require a special cleaning license. But you do need a state business license. This applies to every business in the state.

State Business License (Required)

Every business in Delaware must get a state business license. You apply through the Division of Revenue. The fee is $75 per year.

This is a general license, not specific to cleaning.

You can apply online through the Delaware One Stop portal. This website walks you through every registration you need in one place.

Gross Receipts Tax Registration (Required)

You must register for the gross receipts tax even if you will not owe anything. Registration is free. You do this through the Division of Revenue with your business license.

Local Business Licenses

Some Delaware cities require their own local business license. Check with your city or town hall. Here are some examples:

• Wilmington — Requires a city business license
• Rehoboth Beach — Requires a city business license. You must also show your state license and a certificate of liability insurance
• Other towns — Check with your local government for requirements

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Delaware has specific rules about workers' compensation. Here is what you need:

• General liability insurance — Covers property damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
• Workers' compensation insurance — Required by Delaware law the moment you hire your first employee. You buy this from private insurance carriers. If you cannot find coverage, the Delaware Compensation Rating Bureau has an assigned risk pool
• Surety bond — Protects clients if an employee steals something. Not required by the state, but many clients and property managers ask for it. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Delaware requires minimum liability coverage on all vehicles

For more details on each type of coverage, read our Cleaning Business Insurance Guide.

What Are Delaware Labor Laws?

Delaware labor laws are straightforward. They are less complex than many nearby states. But you still need to follow them from day one.

Minimum Wage

The Delaware minimum wage is $15.00 per hour. This rate does not go up each year on its own. It stays at $15.00 until the state legislature votes to change it.

Tipped workers can be paid $2.23 per hour. But their tips plus direct pay must equal at least $15.00 per hour. If tips fall short, you must make up the gap.

Most cleaning businesses in Delaware pay $15 to $18 per hour. The higher rate helps attract and keep good workers.

Employee Classification

Delaware follows federal rules for worker classification. You must decide if your workers are employees or independent contractors. For most cleaning businesses, your cleaners are employees.

An employee works on your schedule and uses your supplies. You control how they do the work. An independent contractor runs their own business and sets their own methods.

Calling an employee a contractor to avoid taxes and insurance is illegal. It leads to fines and back-pay penalties. When in doubt, classify workers as employees.

Employer Taxes

When you hire employees in Delaware, you pay state employer taxes. These include:

• State unemployment insurance — Rates vary based on your claims history. New employers pay a starting rate set by the state
• Workers' compensation insurance — Required for all employers. Buy from private carriers
• Federal payroll taxes — Social Security and Medicare taxes apply as in every state

What Safety Rules Apply?

Delaware does not have its own state safety agency. Federal workplace safety rules cover all private businesses in the state. The regional office in Philadelphia handles Delaware.

Hazard Communication

You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on what chemicals they handle. Show them how to use products safely.

Explain what to do in case of a spill or skin contact.

Personal Protective Equipment

Provide gloves, eye protection, and other safety gear to your workers. Cleaning chemicals can cause skin burns and eye damage. Give workers the right gear and train them to use it.

Slip and Fall Prevention

Slips and falls are the most common cleaning injuries. Use wet floor signs. Wear shoes with good grip.

Train workers on safe practices when mopping and working on wet surfaces.

How Do You Set Cleaning Prices in Delaware?

Delaware pricing is simpler than most states. You have no sales tax to add. What you quote is what your client pays.

This is a real advantage when competing with businesses in nearby states.

Typical pricing ranges in Delaware:

• Home cleaning (hourly) — $25 to $50 per hour depending on your area
• Home cleaning (flat rate) — $120 to $300 for a standard 3-bedroom home
• Deep cleaning — $200 to $450 depending on home size
• Move-in or move-out cleaning — $250 to $500 or more
• Office cleaning — $0.05 to $0.15 per square foot, or $25 to $60 per hour
• Vacation rental turnover — $100 to $250 per turnover in beach towns

Prices in Wilmington and the beach towns run higher. Prices in Dover and rural areas are lower. Factor in the $300 franchise tax and $75 license fee when setting your rates.

Use our Price Calculator to find the right rate for your area. For detailed pricing methods, read our Pricing Guide.

What Cleaning Niches Are Profitable in Delaware?

Delaware has unique cleaning niches that do well because of the state's geography and economy. Here are the top five options:

Rehoboth and Dewey Beach Resort Cleaning

Rehoboth Beach is known as the nation's summer capital. Thousands of vacation rentals need turnover cleaning from May through September. Beach houses, condos, and hotels all need fast cleaning between guests.

This niche pays well because hosts need same-day turnovers. You can charge $100 to $250 per cleaning. Build relationships with property managers to get steady bookings all summer.

Wilmington Corporate and Banking Cleaning

Wilmington is a major financial center. Big banks like Bank of America, JPMorgan Chase, and Capital One have operations here. Corporate offices and bank branches need regular cleaning.

Commercial contracts are steady and pay well. One large office contract can keep your team busy all month.

Newark and University of Delaware Cleaning

The University of Delaware brings over 24,000 students to Newark. Student housing needs regular cleaning. Move-in and move-out cleaning peaks in August and May.

University buildings and nearby businesses also need cleaning. This market is steady during the school year.

Dover Government and Military Cleaning

Dover is the state capital. It also has Dover Air Force Base. This base is the largest aerial port in the Department of Defense.

Government offices, military housing, and related businesses need cleaning services.

Government contracts can be hard to win. But they offer stable, long-term income once you get them.

Tax-Free Shopping Corridor Retail Cleaning

The Christiana Mall area draws shoppers from Pennsylvania, New Jersey, and Maryland. They come for tax-free shopping. Retail stores in this corridor need regular cleaning to handle the high foot traffic.

Retail cleaning is often done after hours. This lets you schedule it around your daytime residential work.

How Do You Market a Cleaning Business in Delaware?

Getting clients in Delaware follows many of the same steps as anywhere else. But a few strategies work especially well in this small state.

Google Business Profile

This is the most important free marketing step. Set up your Google Business Profile with your city, services, hours, and photos. Ask every happy client for a Google review.

Most people search online before hiring a cleaning service.

Nextdoor and Local Facebook Groups

Delaware is a tight-knit state. Neighbors talk to each other. Join Nextdoor and Facebook groups for your area.

Share helpful cleaning tips. Be active and helpful. Word spreads fast in small communities.

Partner with Property Managers

Beach town property managers need cleaning services all summer. Wilmington property managers need help year-round. Offer them reliable service and fair rates.

One partnership can keep you busy for months.

Vacation Rental Platforms

Reach out to vacation rental hosts in Rehoboth, Dewey, and Bethany Beach. Hosts need fast turnovers. List your services on platforms that connect hosts with cleaners.

Show up on time and do great work. Hosts will refer you to other hosts.

Network with Real Estate Agents

Delaware's housing market stays active. Real estate agents need move-out cleaning for listings. Build relationships with a few agents.

Offer a referral bonus for every new client they send your way.

For a complete marketing plan, read our Marketing Your Cleaning Business guide and How to Get Cleaning Clients Fast.

How Much Does It Cost to Start in Delaware?

Delaware is affordable to start a cleaning business in. Here is a breakdown of what to expect:

• Limited liability company filing — $110 (one-time, through the Division of Corporations)
• Annual franchise tax — $300 per year (to the Division of Corporations)
• State business license — $75 per year (through the Division of Revenue)
• Registered agent — $50 to $300 per year
• Local business license — $0 to $100 per year (varies by city)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Varies (only if you have employees)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Delaware Startup Checklist?

Follow this step-by-step list. Complete each item before moving to the next:

1. Choose your business structure — Form a limited liability company at corp.delaware.gov ($110)
2. Get a registered agent — Find one with a physical Delaware address
3. Get an Employer Identification Number — Apply free at the Internal Revenue Service website
4. Open a business bank account — Keep personal and business money separate
5. Get your state business license — Apply at onestop.delaware.gov ($75 per year)
6. Register for gross receipts tax — Done through the Division of Revenue
7. Check for local licenses — Call your city or town hall to find out
8. Buy general liability insurance — Get at least $1 million in coverage
9. Buy cleaning supplies — Start with the basics and upgrade as you grow
10. Set your prices — Use our Price Calculator and factor in Delaware costs
11. Set up your Google Business Profile — This is your most important marketing tool
12. Book your first clients — Tell friends, post on Nextdoor, reach out to property managers
13. Get workers' compensation insurance — Required before your first employee starts work

What Are the Best Tips for Delaware?

Here are practical tips from successful Delaware cleaning business owners:

• Use the no sales tax advantage — Remind clients they pay zero sales tax. This makes your price feel lower than competitors in nearby states
• Start solo to keep costs low — Work alone until you have enough steady clients. Then hire your first employee
• Build a beach season plan — Line up vacation rental clients in Rehoboth, Dewey, and Bethany before summer starts. Early planning gives you the best properties
• Have a winter backup plan — Beach demand drops after summer. Build year-round clients in Wilmington, Dover, or Newark to stay busy
• Network in a small state — Delaware is small. Word of mouth spreads fast. Do great work and your reputation will grow quickly
• Consider nearby markets — You are close to Philadelphia and Baltimore. Some Delaware businesses expand into these metro areas for more clients
• Keep detailed records — Track every dollar from day one. Good records make tax time simple and help you spot profit opportunities
• Get your systems in place early — Use software like MaidProfit for scheduling, quoting, and invoices. It lets you focus on cleaning and growing

Where Do You Find Delaware Government Resources?

Here is a complete list of every government website mentioned in this guide. Bookmark these for easy access as your business grows.

What Are the Guides for Nearby States?

Thinking about expanding to a nearby state? Each state has different rules and fees. Check our other mid-Atlantic state guides below.

What Other Guides Can Help Your Business?

These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.

Start Your Delaware Cleaning Business Today

Delaware makes starting a cleaning business simple. The filing costs are low. There is no sales tax.

The state is small, so word of mouth spreads fast.

Start by forming your limited liability company and getting your Employer Identification Number. Get your state business license, buy insurance, and set prices that cover your costs. Then focus on getting your first clients through Google, Nextdoor, and local partnerships.

You can target Wilmington offices, beach vacation rentals, or Dover government buildings. Delaware has room for your business.

The steps in this guide give you a clear path. Take action today.