Learn which licenses, permits, and registrations are required to start a cleaning business in Illinois, including local business licensing, state tax registration, city-level requirements, and insurance expectations.
Illinois is a straightforward state for starting a cleaning business. There is no single statewide “cleaning license,” but there are necessary compliance steps involving business registration, local licensing, and sales tax obligations. This guide explains everything needed to operate a residential or commercial cleaning business in Illinois.
Do Cleaning Businesses Need a Business License in Illinois?
Illinois does not issue a statewide business license. Cleaning businesses must register at the city or county level, depending on where they operate.
Most Illinois cleaning businesses will need:
- A local business license issued by their municipality
- A DBA (assumed name certificate) if using a non-legal business name
Chicago and Cook County have additional requirements, while many smaller towns have simpler filing processes.
State-Level Business Registration Requirements
Cleaning business owners forming an LLC or corporation must register with the Illinois Secretary of State. Sole proprietors do not register at the state level but must file a DBA if operating under anything other than their legal name.
Registration link:
https://www.ilsos.gov/
Common business structures in Illinois:
- Sole proprietorship (simplest start)
- LLC (provides liability protection)
- S-corp or corporation (for larger operations)
City and County Licensing Rules in Illinois
Municipalities across Illinois issue local business licenses. Requirements vary by location.
Examples:
- Chicago requires a general business license for most service businesses, including cleaning.
- Aurora, Rockford, Joliet, and Naperville require local business registration but do not require specialty permits.
- Cook County may require additional documentation for businesses operating within unincorporated areas.
Local licensing is typically handled by the city clerk’s office or local business licensing department.
Do Cleaning Businesses Need to Collect Sales Tax in Illinois?
Yes.
Illinois considers cleaning services taxable services, which means cleaning businesses must collect and remit sales tax. This applies to residential and commercial cleaning. The law includes:
- Regular cleaning services
- Janitorial services
- Deep cleaning services
- Move-out/move-in or turnover cleaning
Businesses must:
- Register for a Sales Tax Permit with the state
- Collect sales tax from customers
- File tax returns with the state
Sales tax registration link:
https://mytax.illinois.gov/
Home-Based Cleaning Businesses in Illinois
Illinois allows cleaning businesses to operate from home, provided they comply with local zoning rules. Home-based businesses may need:
- A local business license
- Zoning approval (varies by city)
- Limited storage of chemicals (standard supplies are acceptable)
Home-based operations are well accepted as long as they do not cause neighborhood disruption.
Do Cleaning Businesses in Illinois Need Insurance?
Insurance is not required by Illinois law, but it is frequently expected by commercial clients. Most Illinois cleaning businesses carry:
- General liability insurance
- Workers compensation insurance when hiring employees
- Bonding when working with office or institutional clients
Residential cleaners may begin without insurance, but commercial clients typically require coverage.
Do Cleaning Businesses in Illinois Need Certifications?
Certifications are optional in Illinois. They are not required by law but help attract higher-value clients and support professional credibility. Certifications can be pursued later, especially for specialized services such as commercial or healthcare facility cleaning.
How to Get a Business License for a Cleaning Business in Illinois
Starting a cleaning business in Illinois involves the following steps:
- Choose your business structure (sole proprietorship or LLC)
- Register an LLC or corporation with the Illinois Secretary of State if applicable
- File a DBA with the county if using a trade name
- Register for sales tax with the Illinois Department of Revenue
- Apply for a local business license with your municipality
- Open a business bank account
- Consider liability insurance if pursuing commercial cleaning contracts
Once these steps are completed, you are ready to legally operate in Illinois.
Compliance Snapshot (Illinois Cleaning Business)
| Requirement | Required in Illinois? | Notes |
|---|---|---|
| State Business License | No | Registration is local |
| Local Business License | Yes | Required by city/county |
| Sales Tax Registration | Yes | Cleaning services are taxable |
| Home Occupation Approval | Sometimes | Depends on city zoning |
| Insurance | Not state-required | Expected commercially |
| Certifications | Optional | Marketing advantage only |
Do Commercial Cleaning Contracts Require Insurance in Illinois?
Commercial clients frequently require proof of liability insurance before awarding cleaning work, especially in offices, schools, and healthcare facilities. Bonding may be required for secure or after-hours environments. Workers compensation insurance is needed if you hire employees. Residential work typically does not require coverage, but insurance increases trust and professionalism.
Final Thoughts
Illinois makes it straightforward to start a cleaning business, but you must register locally, obtain a sales tax permit, and comply with zoning if operating from home. Insurance is not mandated by the state but is vital for commercial clients. With these steps in place, cleaning business owners can operate confidently and build a steady client base throughout Illinois.
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