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Do You Need a License for Carpet Cleaning Business?

You will most likely need a license for carpet cleaning, although this will depend on your location or your state in the United States. Carpet cleaning businesses are expected to meet certain standards to protect both the clients and the company.

Keep in mind that the intricate nature of identifying the licenses and permits you need to start a carpet cleaning business can be quite overwhelming.

As such, you need to get it right at the very beginning, otherwise, your business might have to bear the consequences of being on the wrong side of the law.

License Needed For Carpet Cleaning

  1. General Business License or Permit

In almost all states, you will be expected to obtain a general business license or permit before you can start a carpet cleaning business.

Aside from the state requirements, note that this license might also be necessary at the city level and you will want to make inquiries to avoid going against the law.

  1. Federal Employer Identification Number

The Federal Employer Identification Number (also commonly known as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number used by the Internal Revenue Service (IRS) to identify businesses in the United States.

While this is not classified as a license, it is renowned as a legal requirement for anyone looking to start a business in the United States.

Keep in mind that any business with employees or one that is a partnership, Corporation, and in most instances as an LLC, will have to obtain an EIN.

  1. Sales Tax Permit or Business Number

In some states, note that you will be expected to obtain a sales tax permit before you sell products and/or offer certain services.

Also known as a business tax number or tax ID number, keep in mind that this permit creates an account number with the state’s Department of Revenue (or the requisite state taxing agency) to keep notes and collect sales tax.

  1. Wastewater Requirements

Although this requirement will vary depending on your location or state in the United States, it is one of those vital licenses you need to pay attention to or even verify its need from your local county clerk.

A good number of states and publicly owned wastewater treatment works (POTWs) mandate authorization or permitting to dispose of carpet cleaning wastewater.

  1. Entity Formation

A legal entity more or less describes how a business is formed to operate. In the United States, there are four major types of entities; sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).

Don’t forget that each one comes with its own advantages and disadvantages, which will most often include liability protection, costs, and administrative requirements.

  1. Business Name Registration

Although this is not in any way a business license, it is a very important requirement owing to the fact that a good number of states mandate the registration of a business name.

Note that this can be quite daunting to achieve because the process of name registration tends to vary by state and the sort of business entity you intend to form.

For example, sole proprietorships and partnerships are normally required to register a business name (commonly known as a Doing Business As, DBA, fictitious business name, or assumed name). Meanwhile, Corporations and LLCs have it a lot easier as the name is registered when the entity is formed with the state.

  1. Certificate of Occupancy

If you intend to operate your business out of a commercial building, then you will be expected to secure a Certificate of Occupancy (CO).

In the United States, this certificate works to prove that your business has been legally permitted to operate or use a particular building.

Keep in mind that this certificate or license is obtained from the city and/or the county and prior to the certificate being issued, the building will be inspected to ensure that it aligns with zoning regulations, building codes, as well as every other local requirement. If you intend to run your business from home, you might be expected to obtain a home occupation permit.