How to Start a Cleaning Business in Tennessee: Complete Guide

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

Why Start a Cleaning Business in Tennessee?

Tennessee has no state income tax. You keep more of what you earn. This is a huge advantage for business owners.

Nashville is one of the fastest growing cities in the country. People move there every day. New homes and condos create constant demand for cleaning services.

The state also has Memphis, Knoxville, and Chattanooga. Four metros give you many markets to choose from. The cost of living is low across the state.

How Do You Choose a Business Structure?

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

Sole Proprietorship

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

If you want a business name, file an Assumed Name Certificate with the county register. 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 Tennessee, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $300 per member (minimum $300).

Tennessee requires an annual report every year. The fee is $300 per member (minimum $300). This is higher than most states.

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.

No State Income Tax

Tennessee has no state income tax on wages or business income. This is a major advantage. You keep more of your cleaning business earnings compared to other states.

You still pay federal income tax and self-employment tax. But the lack of state income tax saves you thousands each year.

Cleaning Services and Sales Tax

This is important: cleaning services are taxable in Tennessee. The state sales tax rate is 7 percent. This is one of the highest state rates in the country.

Local taxes add 1.5 to 2.75 percent more. Nashville's combined rate is 9.25 percent. Memphis is 9.75 percent. You must collect sales tax from your clients on every job.

Register for a sales tax permit before you start charging clients.

What Licenses and Permits Do You Need?

Tennessee has no statewide business license for cleaning. There is no special cleaning license at the state level.

However, you need a sales tax permit since cleaning is taxable. Many cities also require local business licenses.

Local Business Licenses

Nashville requires a business license through the Metro Clerk's office. Memphis, Knoxville, and Chattanooga also have local requirements. Check with your city or county clerk.

Tennessee counties also issue business tax licenses. Most counties charge a small annual fee based on your business type.

Sales Tax Permit

Since cleaning services are taxable, you need a sales tax permit. This is free from the Tennessee Department of Revenue. Apply online before you start charging clients.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Tennessee 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 Tennessee for employers with five or more employees. Employers in construction need it with just one employee
• 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. Tennessee requires minimum liability coverage on all vehicles

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

What Are Tennessee Labor Laws?

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

Minimum Wage

Tennessee has no state minimum wage law. It follows the federal minimum wage of $7.25 per hour. This is one of the lowest in the country.

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

Worker Classification

Tennessee 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 Tennessee Department of Labor and Workforce Development. New employers pay a starting rate.

What Safety Rules Apply?

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

Heat Safety

Tennessee summers are hot and humid. Workers moving between jobs in summer heat can get heat exhaustion. Keep water available. Allow breaks during the hottest parts of the day.

How Do You Set Cleaning Prices in Tennessee?

Tennessee has a moderate cost of living. Nashville commands higher rates. Other cities are more affordable.

Typical pricing ranges in Tennessee:

• Home cleaning (hourly) — $25 to $55 per hour (Nashville); $20 to $38 per hour (other cities)
• Home cleaning (flat rate) — $120 to $300 for a standard 3-bedroom home
• Deep cleaning — $190 to $430 depending on home size and location
• Move-in or move-out cleaning — $210 to $480
• Office cleaning — $0.06 to $0.15 per square foot

Remember to add sales tax on top of your prices. Use our Price Calculator to find the right rate for your area.

What Cleaning Niches Are Profitable in Tennessee?

Tennessee has cleaning niches that do especially well. Fast growth and tourism create many options.

Nashville Suburb Luxury Cleaning

Franklin, Brentwood, and Belle Meade are among the wealthiest areas in the South. These families pay premium rates. Williamson County is one of the richest counties in the country.

Short-Term Rental Cleaning

Nashville is a top tourist destination. Thousands of short-term rental properties need turnover cleaning between guests. Gatlinburg and Pigeon Forge near the Smoky Mountains also have huge rental markets.

This niche pays well and creates steady, repeat work.

Music Row and Entertainment Cleaning

Nashville's music industry creates unique cleaning demand. Recording studios, event venues, and entertainment offices all need regular cleaning. Build relationships in the music district.

Memphis Medical District

Memphis has a large medical district with hospitals and clinics. St. Jude Children's Research Hospital and other facilities create demand. Medical offices need specialized cleaning.

Knoxville and Chattanooga Growing Markets

Both cities are growing fast. Knoxville has the University of Tennessee and a thriving downtown. Chattanooga has a strong tech scene. Less competition means more opportunity.

How Do You Market a Cleaning Business in Tennessee?

Getting clients in Tennessee 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

Tennessee residents are active on Nextdoor. Suburban Facebook groups are popular in Nashville, Memphis, and Knoxville. Share helpful cleaning tips.

Partner with Short-Term Rental Hosts

Nashville and the Smokies have thousands of rental properties. Hosts need reliable cleaning between guests. Offer fast turnaround and consistent quality to win these accounts.

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 Tennessee?

Tennessee has higher filing fees but no income tax. This trade-off works in your favor as you grow.

• Limited liability company filing — $300 per member, minimum $300 (through the Secretary of State)
• Annual report — $300 per member, minimum $300 per year
• Assumed Name Certificate — Varies by county (if using a different business name)
• Sales tax permit — Free (required since cleaning is taxable)
• Local business license — $15 to $100 per year (varies by city)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required at five or more employees (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 Tennessee 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.tn.gov ($300)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Get a sales tax permit — Apply free at tn.gov/revenue
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 and factor in Tennessee sales tax
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, connect with rental hosts
11. Get workers' compensation at five employees — Have coverage ready before you reach the threshold
12. Register for unemployment insurance — Required before your first employee starts

What Are the Best Tips for Tennessee?

Here are practical tips for success in Tennessee.

• Take advantage of no income tax — You keep more of your earnings. Reinvest savings into growing your business
• Always collect sales tax — Rates are high in Tennessee. Build it into your quotes so clients know the total upfront
• Target Nashville suburbs — Franklin, Brentwood, and Belle Meade pay the highest rates in the state
• Build short-term rental accounts — Nashville and the Smokies have thousands of rental properties needing turnover cleaning
• Start with fewer than five employees — Workers' compensation kicks in at five. Grow slowly until you can afford the coverage
• Prepare for summer heat — Tennessee summers are hot. Keep water and cooling supplies for your team
• File your annual report on time — It is $300 per year. Missing it risks losing your company status
• Use MaidProfit to manage bookings — Track jobs, invoices, and sales tax with one tool

What Are the Guides for Nearby States?

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

Where Do You Find Tennessee 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 Tennessee Cleaning Business Today

Tennessee offers no income tax and a booming Nashville market. The trade-off of higher sales tax is worth it when you keep all your earnings.

Start by forming your limited liability company. Get your Employer Identification Number and sales tax permit. Buy insurance, check local licenses, and set your prices.

Then focus on getting clients through Google and local partnerships.

The fast-growing suburbs, tourist destinations, and rental markets create steady demand. Every successful Tennessee cleaning company started with one owner and one first client. Take action today.