How to Start a Cleaning Business in Louisiana?

Want to know how to start a cleaning business in Louisiana? The process is fairly simple.3 min read

Want to know how to start a cleaning business in Louisiana? The process is fairly simple. In order to avoid double taxation, regular meeting requirements, and more, many entrepreneurs will choose to form a limited liability company (LLC) rather than a corporation. An LLC has the benefit of reaping many of the same benefits as a corporation.

Choosing a Business Structure for a Cleaning Company

Conversely, if you want your company to be public and are interested in raising substantial capital, then you should consider forming a corporation rather than an LLC. While some start-ups can be complex due to location and the industry type, the formation of a cleaning business in Louisiana is not near as hectic as the Louisiana Mardi Gras, thanks to a startup-friendly state regulatory system.

For those who want to start the endeavor of business ownership on their own, it can be as simple as following a step-by-step guide available on the Louisiana Business License Permit and Registration page through the Small Business Association, SBA. For those who wish to have a little more guidance and assistance, a Business License Service is a great resource to ensure you meet all the federal, state, and local requirements along with all the correct forms.

One of the first decisions you will make is selecting the structure of your cleaning business. The type of entity structure you choose will determine how the government will tax your business. You will choose to either operate as a sole proprietor, a partnership, an LLC, or a corporation. Regardless of the entity structure you choose, you are required to acquire a business license and an employer identification number, EIN.

Choosing a Name for the Cleaning Company

Additionally, you will need to choose a name for your business. When you file a Doing Business As, DBA, this allows your business to legally operate under a trade name and will also subject you to self-employment taxation. If you have chosen to operate as an LLC or a corporation, you will not need to file a DBA because you have already registered your business name. However, if for a certain reason you plan to operate your LLC or corporation under a different name rather than what you filed on your LLC or corporation paperwork, you would need to file a DBA.

All businesses performing cleaning services must get a Louisiana Cleaning Service Business License. If you plan to sell merchandise of any kind, including food, you will need to obtain a seller's permit. Once you are operating and receiving income from residents in Louisiana, you will then owe taxes.

How to Be Fully Licensed

Tax-specific identification numbers are required for business owners. In addition, owners may be required to have:

  • Licenses.
  • Permits.
  • Income tax withholding.
  • Sales and usage tax.
  • Seller's permit.
  • Unemployment insurance tax.

To be a fully licensed and legally operating cleaning business, you will need to provide the following:

  • Your business's legal name and physical address.
  • The name, address, social security number, and email address of all owners, partners, or officers.
  • A Louisiana Revenue Account Number Application.
  • Louisiana Tax Number Application Instructions.
  • General forms and tax information.

Filing a DBA

Whether you are required to have one or more business or occupational licenses and permits will depend on the nature of the products, services, and business you are operating. If you are operating as a sole proprietor in Louisiana, you do not have to register a DBA with the state.

As a sole proprietor, you also have the option to operate the business under a name other than the owner's legal name by using a fictitious name. However, entities such as LLCs, corporations, and partnerships are required to register their DBA with the Louisiana Secretary of State.

Tax Requirements

Before or on the day of employment, employers are required to distribute a withholding exemption certificate called a Form W-4 to all employees. Each employee must sign and date the form before actual employment. Employers can refer to the IRS Employer's Tax Guide for additional information on their responsibility for withholding federal taxes.

By January 31 of the following year, employers should provide every employee a copy of a Form-W-2; this form shows each employee the wages and taxes earned for the previous calendar year.