How to Start a Cleaning Business in Indiana: Complete Guide

Starting a cleaning business in Indiana 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 Indiana, including filing fees, licenses, insurance, labor laws, and local tips.

Why Start a Cleaning Business in Indiana?

Indiana is one of the most affordable states to start a business. The filing fee is just $95 for a limited liability company. The cost of living is low across the state.

Indianapolis is a growing metro with over 2 million people. The suburbs are expanding fast. Carmel and Fishers rank among the best places to live in the country.

Indiana also has a low minimum wage. This gives you flexibility on labor costs while still paying competitive rates to attract good workers.

How Do You Choose a Business Structure?

You need to decide how to set up your business. Indiana offers two main choices for cleaning companies.

Sole Proprietorship

This is the simplest way to start. You do not file anything with the state. Indiana considers you a sole owner right away.

If you want a business name, file an Assumed Business Name with the county recorder. The fee varies by county.

The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.

Limited Liability Company

This 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 Indiana, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $95.

Indiana requires a biennial report every two years. The fee is $31. This is one of the cheapest in the country.

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. You also need it to file taxes and hire workers.

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

Indiana Income Tax

Indiana has a flat income tax rate of 3.05 percent. This is one of the lowest state income tax rates in the country. Your cleaning business income passes through to your personal tax return.

Counties also add their own income tax. Rates vary from about 0.5 to 3 percent. Check your county's rate with the Indiana Department of Revenue.

Cleaning Services and Sales Tax

Good news for Indiana cleaners. Cleaning services are generally not subject to sales tax. Indiana taxes the sale of goods, not most services.

However, if you sell cleaning products to clients, those product sales are taxable at 7 percent. Keep your service charges and product sales separate on invoices.

What Licenses and Permits Do You Need?

Indiana has no statewide business license for cleaning. There is no special cleaning license at the state level. This keeps things simple.

However, some cities require local business licenses or permits. Check with your city or county clerk.

Local Business Licenses

Indianapolis does not require a general business license for most cleaning companies. However, some townships within Marion County have their own rules.

Other Indiana cities like Fort Wayne, Evansville, and South Bend may have local requirements. Always check before you start working in a new area.

Registered Agent

Indiana requires a registered agent for your limited liability company. This person or service receives legal papers on your behalf. You can be your own agent if you have an Indiana address.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Indiana requires some types of coverage. 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 in Indiana for all employers with one or more employees. You must have coverage before your first hire starts
• Surety bond — Protects clients if an employee steals something. Not required but highly recommended. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Indiana requires minimum liability coverage on all vehicles

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

What Are Indiana Labor Laws?

If you plan to hire workers, you need to follow Indiana labor laws from day one.

Minimum Wage

Indiana follows the federal minimum wage of $7.25 per hour. This is one of the lowest in the country. However, most cleaning businesses pay well above this rate.

Most cleaning companies pay $12 to $17 per hour to attract good workers. The low minimum wage gives you flexibility to set competitive rates.

Worker Classification

Indiana follows federal standards for worker classification. Cleaning workers who follow your schedule usually count as employees. Classifying them wrong leads to fines.

When in doubt, hire them as employees.

Unemployment Insurance

When you hire employees, register for unemployment insurance. Register through the Indiana Department of Workforce Development. New employers pay a starting rate.

What Safety Rules Apply?

Indiana uses its own state workplace safety program. The Indiana Occupational Safety and Health Administration oversees workplace safety in the state.

Hazard Communication

You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on each product they handle. Show them what to do if a spill happens.

Seasonal Safety

Indiana has hot summers and cold winters. Workers travel between jobs in all weather. Keep water available in summer. Have winter safety supplies ready for icy conditions.

How Do You Set Cleaning Prices in Indiana?

Indiana has a low cost of living. Indianapolis commands higher rates. Smaller cities need lower prices.

Typical pricing ranges in Indiana:

• Home cleaning (hourly) — $22 to $45 per hour
• Home cleaning (flat rate) — $100 to $250 for a standard 3-bedroom home
• Deep cleaning — $170 to $380 depending on home size
• Move-in or move-out cleaning — $190 to $420
• Office cleaning — $0.05 to $0.12 per square foot

No sales tax on cleaning services means your price is what clients pay. Use our Price Calculator to find the right rate for your area.

What Cleaning Niches Are Profitable in Indiana?

Indiana has cleaning niches that do especially well. The state's mix of cities and suburbs creates many options.

Indianapolis North Side Suburbs

Carmel, Fishers, Westfield, and Zionsville are among the wealthiest suburbs in the Midwest. These families pay premium rates. The area is growing fast with new homes every year.

College Town Cleaning

Bloomington is home to Indiana University. West Lafayette has Purdue University. Both towns have thousands of students and professors who need cleaning services.

Move-out cleaning at the end of each semester creates busy seasons.

Motorsports and Event Cleaning

Indianapolis hosts the Indy 500 and other major events. Event venues, hotels, and rental properties need cleaning during busy seasons. This creates short-term, high-paying work.

Medical Facility Cleaning

Indianapolis is a major medical hub. Hospitals, clinics, and medical offices need specialized cleaning. This niche pays well and creates steady contracts.

Manufacturing Office Cleaning

Indiana has a strong manufacturing sector. Factories, warehouses, and corporate offices all need regular cleaning. Build relationships with plant managers for steady work.

How Do You Market a Cleaning Business in Indiana?

Getting clients in Indiana follows the same steps as most states. Here are strategies that work well.

Google Business Profile

Set up your profile with your city, services, and photos. Ask every happy client for a Google review. Most people search online first.

Nextdoor and Local Facebook Groups

Indiana residents are active on Nextdoor. Suburban Facebook groups are popular. Join groups for your service area and share helpful tips.

Partner with Property Managers

Indianapolis has a growing rental market. Property managers need turnover cleaning between tenants. Offer them special rates for steady work.

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 Indiana?

Indiana is very affordable to start a cleaning business. Low filing fees and cost of living help keep startup costs down.

• Limited liability company filing — $95 (one-time, through the Secretary of State)
• Biennial report — $31 every two years
• Assumed Business Name — Varies by county (if using a different business name)
• Local business license — $0 to $100 per year (varies by city)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required once you hire (rates vary)
• Surety bond — $100 to $500 per year (recommended)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Indiana Startup Checklist?

Follow these steps in order. Complete each one before moving on.

1. Choose your business structure — Form a limited liability company at in.gov/sos ($95)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Register with the Indiana Department of Revenue — Set up your state tax account
4. Open a business bank account — Keep personal and business money separate
5. Check local license requirements — Contact your city or county clerk
6. Buy general liability insurance — Get at least $1 million in coverage
7. Buy cleaning supplies — Start with the basics and upgrade as you grow
8. Set your prices — Use our Price Calculator for your Indiana market
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, contact property managers
11. Get workers' compensation before hiring — Required for even one employee in Indiana
12. Register for unemployment insurance — Required before your first employee starts

What Are the Best Tips for Indiana?

Here are practical tips for success in Indiana.

• Start solo to keep costs low — The $95 filing fee is very affordable. Work alone until you have enough clients to justify hiring
• Pay above minimum wage — The $7.25 rate is low. Pay $12 to $17 per hour to attract reliable workers. This is still cheaper than most neighboring states
• Target Carmel and Fishers — These north side suburbs have the highest incomes and willingness to pay for cleaning
• Serve college towns in August and May — Move-in and move-out seasons at Indiana University and Purdue create big demand
• Build event season contacts — The Indy 500 and other events bring cleaning demand every year
• File your biennial report on time — It is only $31 every two years. Do not forget or you risk losing your company status
• Watch your county tax rate — County income tax adds to your state rate. Factor this into your pricing
• Use MaidProfit to manage bookings — Track jobs, invoices, and scheduling with one tool

What Are the Guides for Nearby States?

If you serve areas near the Indiana border, these guides may help.

Where Do You Find Indiana Government Resources?

Here is a complete list of every government website in this guide. Bookmark these for later.

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 Indiana Cleaning Business Today

Indiana makes it very affordable to start a cleaning business. Low filing fees and a growing metro area create great opportunity.

Start by forming your limited liability company. Get your Employer Identification Number and register with the state. Buy insurance, check local licenses, and set your prices.

Then focus on getting clients through Google and local partnerships.

The growing suburbs, college towns, and strong housing market create steady demand. Every successful Indiana cleaning company started with one owner and one first client. Take action today.