How to Start a Cleaning Business in Kentucky: Complete Guide

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

Why Start a Cleaning Business in Kentucky?

Kentucky has one of the cheapest filing fees in the country. It costs just $40 to form a limited liability company. The annual report is only $15.

Louisville is a growing metro with over 1.3 million people. Lexington is a wealthy college town surrounded by horse country. Both cities have strong demand for cleaning.

Cleaning services are not taxable in Kentucky. This makes your pricing simpler. You do not need to collect sales tax on your labor.

How Do You Choose a Business Structure?

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

Sole Proprietorship

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

If you want a business name, file a fictitious name with the county clerk. 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 Kentucky, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is just $40.

Kentucky requires an annual report every year. The fee is only $15. 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.

Kentucky Income Tax

Kentucky has a flat income tax rate of 4.5 percent. This applies to all income levels. Your cleaning business income passes through to your personal tax return.

You may need to make quarterly estimated payments. The Kentucky Department of Revenue handles all state tax filings.

Cleaning Services and Sales Tax

Good news for Kentucky cleaners. Cleaning services are not subject to sales tax. Kentucky taxes the sale of goods at 6 percent, not most services.

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

What Licenses and Permits Do You Need?

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

However, many cities require local business licenses. Louisville Metro has its own requirements.

Local Business Licenses

Louisville Metro requires a business license. Lexington-Fayette Urban County also has local rules. Check with your city or county clerk before you start.

Fees are usually low. Most range from $25 to $100 per year.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Kentucky 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 Kentucky 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. Kentucky requires minimum liability coverage on all vehicles

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

What Are Kentucky Labor Laws?

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

Minimum Wage

Kentucky 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

Kentucky 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 Kentucky Office of Employment and Training. New employers pay a starting rate.

What Safety Rules Apply?

Kentucky has its own state workplace safety program. The Kentucky 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

Kentucky has hot summers and cold winters. Workers travel between jobs in all weather. Keep water available in summer and winter safety supplies ready for ice.

How Do You Set Cleaning Prices in Kentucky?

Kentucky has a low cost of living. Louisville and Lexington support higher rates. Smaller cities need lower prices.

Typical pricing ranges in Kentucky:

• 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 Kentucky?

Kentucky has cleaning niches that do especially well. The state's unique culture creates many options.

Louisville East End Luxury Cleaning

Louisville's east end suburbs are the wealthiest in the state. Prospect, Anchorage, and Indian Hills have high-end homes. These clients pay premium rates for quality cleaning.

Lexington Horse Country Estates

Lexington is surrounded by horse farms. Versailles and Paris have large estates with big homes. These properties need regular cleaning. Many owners are wealthy and pay well.

Bourbon Trail Tourism Cleaning

The bourbon trail brings tourists from around the world. Hotels, bed and breakfasts, and vacation rentals need cleaning. Distillery event spaces also need regular maintenance.

Northern Kentucky and Cincinnati Market

Covington and Northern Kentucky sit right across the river from Cincinnati. You can serve both markets. This gives you access to a metro of over 2 million people.

Military Base Housing

Fort Campbell and Fort Knox are major military bases. Military families move often and need cleaning. This creates steady, repeat work year-round.

How Do You Market a Cleaning Business in Kentucky?

Getting clients in Kentucky 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

Kentucky residents are active on Nextdoor and Facebook. Join groups for your service area. Share helpful cleaning tips and build trust.

Partner with Real Estate Agents

Louisville and Lexington have active real estate markets. Agents need move-in cleaning for new buyers. Build relationships with top agents in your area.

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 Kentucky?

Kentucky is one of the cheapest states to start a cleaning business. Low filing fees and cost of living help.

• Limited liability company filing — $40 (one-time, through the Secretary of State)
• Annual report — $15 per year
• Fictitious name — Varies by county (if using a different business name)
• Local business license — $25 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 Kentucky Startup Checklist?

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

1. Choose your business structure — Form a limited liability company at sos.ky.gov ($40)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Register with the Kentucky Department of Revenue — Set up your state tax account
4. Open a business bank account — Keep personal and business money separate
5. Get your local business license — Check your city or county requirements
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 Kentucky 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 real estate agents
11. Get workers' compensation before hiring — Required for even one employee in Kentucky
12. Register for unemployment insurance — Required before your first employee starts

What Are the Best Tips for Kentucky?

Here are practical tips for success in Kentucky.

• Start solo to keep costs low — The $40 filing fee makes Kentucky one of the cheapest states to start. Work alone until you have enough clients
• Pay above minimum wage — The $7.25 rate is low. Pay $12 to $17 per hour to attract reliable workers
• Target Louisville's east end — Prospect, Anchorage, and Indian Hills pay the highest rates in the state
• Build horse country contacts — Lexington's horse farm estates pay well and create steady work
• Serve Northern Kentucky — You can access the Cincinnati metro market from across the river
• Connect with bourbon trail tourism — Hotels and rentals near distilleries need cleaning
• File your annual report on time — It is only $15 per year. Do not forget or you risk losing your company status
• 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 Kentucky border, these guides may help.

Where Do You Find Kentucky 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 Kentucky Cleaning Business Today

Kentucky offers one of the cheapest startup costs in the country. The $40 filing fee and $15 annual report make it easy to get started and stay in business.

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 wealthy suburbs, horse country estates, and bourbon trail tourism create steady demand. Every successful Kentucky cleaning company started with one owner and one first client. Take action today.