How to Start a Cleaning Business in Michigan: Complete Guide

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

Why Start a Cleaning Business in Michigan?

Michigan has one of the cheapest filing fees in the country. It costs just $50 to form a limited liability company. The cost of living is also affordable across most of the state.

The Detroit metro area has over 4.3 million people. The suburbs have some of the wealthiest communities in the Midwest. That creates strong demand for premium cleaning services.

Grand Rapids is growing fast and Ann Arbor is a wealthy college town. Michigan gives you many markets to choose from.

New to Cleaning Businesses?

Read our general How to Start a Cleaning Business guide first. This Michigan guide adds the state-specific steps you need on top of those basics.

How Do You Choose a Business Structure?

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

Sole Proprietorship

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

If you want a business name, file an Assumed Name Certificate with your county clerk. The fee varies by county but is usually around $10.

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 Michigan, file Articles of Organization. You do this online through the Department of Licensing and Regulatory Affairs. The filing fee is just $50.

Michigan requires an annual statement every year. The fee is $25. This keeps your company in good standing.

Our Recommendation

Choose a limited liability company. At just $50, Michigan has one of the cheapest filing fees in the country. You enter people's homes every day — the protection is worth it.

Michigan Government Resources
  • michigan.gov/laraFile your Articles of Organization for a limited liability company

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.

Michigan Income Tax

Michigan has a flat income tax rate of 4.25 percent. This applies to all income levels. Your cleaning business income passes through to your personal tax return.

Some Michigan cities also have their own income tax. Detroit charges 2.4 percent. Grand Rapids, Flint, and others have city income taxes too.

Cleaning Services and Sales Tax

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

However, if you sell cleaning products to clients, those product sales are taxable at 6 percent. Keep your service charges and product sales separate on invoices.

Michigan Tax Tip

Cleaning labor is not taxable in Michigan. This makes pricing simpler. But check if your city has a local income tax. Detroit, Grand Rapids, and several other cities add their own rate.

Tax Resources
  • irs.govApply for a free Employer Identification Number (never pay for this)
  • michigan.gov/treasuryMichigan Department of Treasury — business registration and tax filing

What Licenses and Permits Do You Need?

Michigan 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 or permits. Requirements vary by where you work.

Local Business Licenses

Detroit requires a business license for most companies. Grand Rapids, Ann Arbor, and other cities may have their own rules. Check with your city clerk.

Fees are usually low. Most range from $25 to $150 per year.

Assumed Name Certificate

If you use a business name different from your legal name, file an Assumed Name Certificate. File this with your county clerk. The fee is usually around $10.

License Resources

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Michigan 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 Michigan for all employers with one or more employees. This includes part-time workers. Michigan enforces this strictly
  • 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. Michigan has unique no-fault auto insurance laws with higher costs than most states

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

Important

Michigan has unique no-fault auto insurance laws. This makes commercial vehicle insurance more expensive. Budget for higher auto insurance costs if you drive between job sites.

What Are Michigan Labor Laws?

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

Minimum Wage

Michigan minimum wage is $10.56 per hour. This rate adjusts for inflation each year. It is higher than the federal rate of $7.25.

Most cleaning businesses pay $13 to $19 per hour to attract good workers. Budget for competitive wages in the Detroit suburbs and Ann Arbor.

Paid Sick Leave

Michigan requires paid sick leave for most employees. Workers earn one hour of paid sick time for every 30 hours worked. This applies to businesses with one or more employees.

Track sick time carefully. You must provide this benefit from day one of employment.

Worker Classification

Michigan 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 Michigan Unemployment Insurance Agency. New employers pay a starting rate.

Labor Law Resources

What Safety Rules Apply?

Michigan has its own state workplace safety program. The Michigan 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.

Winter Safety

Michigan winters are long and harsh. Workers travel between jobs on icy roads. Make sure vehicles have winter tires. Keep ice melt and warm gear available.

Slipping on ice is one of the most common workplace injuries in Michigan. Take winter safety seriously.

How Do You Set Cleaning Prices in Michigan?

Michigan prices vary by location. Detroit suburbs and Ann Arbor support higher rates. Other areas need lower prices.

Michigan Pricing Formula
Price = Labor + Supplies + Insurance + Profit

Typical pricing ranges in Michigan:

  • Home cleaning (hourly) — $25 to $55 per hour (metro Detroit); $20 to $38 per hour (outstate)
  • Home cleaning (flat rate) — $120 to $300 for a standard 3-bedroom home
  • Deep cleaning — $200 to $450 depending on home size and location
  • Move-in or move-out cleaning — $220 to $500
  • Office cleaning — $0.06 to $0.15 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.

Michigan Cleaning Prices

For detailed city-by-city pricing data, see our full Cleaning Business Prices in Michigan guide.

What Cleaning Niches Are Profitable in Michigan?

Michigan has many cleaning niches. The big metro areas and unique geography create different opportunities.

Detroit Suburb Luxury Cleaning

Oakland County suburbs are among the wealthiest in the country. Birmingham, Bloomfield Hills, and Troy have high-end homes. These clients pay premium rates for quality cleaning.

Grosse Pointe along the lake is another wealthy area. Focus on quality and reliability to win these clients.

Ann Arbor College Town

Ann Arbor is home to the University of Michigan. Over 47,000 students create demand for cleaning. The city also has high-income families who pay well for services.

Lakefront and Vacation Home Cleaning

Michigan has over 3,000 miles of shoreline. Lakefront homes and vacation rentals need seasonal cleaning. Traverse City, Petoskey, and Mackinaw areas have strong vacation rental markets.

Short-term rental turnover cleaning pays well and creates steady summer work.

Grand Rapids Growing Market

Grand Rapids is one of the fastest growing cities in the Midwest. New homes, offices, and restaurants create demand. The craft brewery and restaurant scene also needs commercial cleaning.

Automotive Office Cleaning

Michigan is the heart of the auto industry. Corporate offices, dealerships, and supplier facilities all need regular cleaning. Build relationships for steady contracts.

Michigan Tip

Vacation rentals along the lakeshore create a huge summer market. Start building relationships with property owners in spring. Turnover cleaning between guests pays well and stays busy all summer.

How Do You Market a Cleaning Business in Michigan?

Getting clients in Michigan 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

Michigan residents are active on Nextdoor. Suburban Facebook groups are popular in the Detroit metro. Join groups for your service area and share helpful tips.

Partner with Property Managers

Detroit and Grand Rapids have growing rental markets. Property managers need turnover cleaning. Vacation rental owners along the lakes also need regular cleaning partners.

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 Michigan?

Michigan is very affordable to start a cleaning business. The $50 filing fee is one of the lowest in the country.

  • Limited liability company filing — $50 (one-time, through the Department of Licensing and Regulatory Affairs)
  • Annual statement — $25 per year
  • Assumed Name Certificate — About $10 (if using a different business name, filed with county)
  • Local business license — $25 to $150 per year (varies by city)
  • General liability insurance — $400 to $1,200 per year
  • Workers' compensation insurance — Required once you hire (rates vary)
  • Commercial auto insurance — Higher than most states due to Michigan no-fault laws
  • Surety bond — $100 to $500 per year (recommended)
  • Cleaning supplies and equipment — $200 to $500 to start
  • Marketing (initial) — $100 to $500
Solo Operator First-Year Estimate
$900 to $2,400 (no employees)
With Employees First-Year Estimate
$4,500 to $11,000 (includes workers' compensation and paid sick leave costs)

What Is on Your Michigan Startup Checklist?

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

  1. Choose your business structure — Form a limited liability company at michigan.gov/lara ($50)
  2. Get an Employer Identification Number — Apply free at irs.gov
  3. Register with the Michigan Department of Treasury — 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 clerk
  6. Buy general liability insurance — Get at least $1 million in coverage
  7. Buy commercial auto insurance — Budget for Michigan's no-fault rates
  8. Buy cleaning supplies — Start with the basics and upgrade as you grow
  9. Set your prices — Use our Price Calculator for your Michigan market
  10. Set up your Google Business Profile — This is your most important marketing tool
  11. Book your first clients — Tell friends, post on Nextdoor, contact property managers
  12. Get workers' compensation before hiring — Required for even one employee in Michigan
  13. Register for unemployment insurance — Required before your first employee starts

What Are the Best Tips for Michigan?

Here are practical tips for success in Michigan.

  • Start solo to keep costs low — The $50 filing fee makes Michigan one of the cheapest states to start. Work alone until you have enough clients
  • Budget for auto insurance — Michigan's no-fault insurance laws mean higher vehicle costs. Factor this into your pricing
  • Target Oakland County suburbs — Birmingham, Bloomfield Hills, and Troy pay the highest rates in the state
  • Build summer lake business — Vacation rentals along the lakes create great seasonal income. Start marketing to owners in spring
  • Track paid sick leave — Michigan requires it. Set up a system to track hours from day one
  • Prepare for long winters — Michigan winters last from November through March. Have winter safety plans for your team
  • File your annual statement on time — It is only $25 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 Michigan border, these guides may help.

Neighbor State Guides
Nearby State Pricing Guides

Where Do You Find Michigan Government Resources?

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

Complete Government Resource List

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.

Recommended Reading

Start Your Michigan Cleaning Business Today

Michigan offers an affordable start with huge market potential. The $50 filing fee and wealthy suburbs 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 wealthy suburbs, college towns, and lakefront properties create steady demand. Every successful Michigan cleaning company started with one owner and one first client. Take action today.

Michigan Cleaning Business Frequently Asked Questions

How much does it cost to start a cleaning business in Michigan?
Starting as a solo operator costs $900 to $2,400 in your first year. This includes $50 for a limited liability company, $25 for the annual statement, $400 to $1,200 for insurance, and $200 to $500 for supplies. If you hire employees, expect $4,500 to $11,000 due to workers' compensation and paid sick leave costs.
Are cleaning services taxable in Michigan?
No. Cleaning and janitorial services are generally not subject to sales tax in Michigan. Michigan taxes goods, not most services. However, if you sell cleaning products to clients, those sales are taxable at the 6 percent state rate.
Is workers' compensation required in Michigan?
Yes. Michigan requires workers' compensation for all employers with one or more employees. This includes part-time workers. You must have coverage before your first employee starts work. Buy from private carriers or the state fund.
What is the minimum wage in Michigan?
Michigan minimum wage is $10.56 per hour and adjusts for inflation each year. Most cleaning businesses pay $13 to $19 per hour to attract and keep good workers. Michigan also requires paid sick leave for most employees.
Do I need a business license to clean houses in Michigan?
Michigan has no statewide business license for cleaning. However, many cities like Detroit, Grand Rapids, and Ann Arbor require local business licenses. Check with your city clerk before you start working in any area.
What are the best cities to start a cleaning business in Michigan?
The Detroit metro suburbs are the best market with over 4.3 million people. Top suburbs include Troy, Birmingham, Bloomfield Hills, and Rochester Hills. Grand Rapids is growing fast. Ann Arbor is a wealthy college town. Traverse City and the lakeshore offer vacation rental cleaning.

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