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How to Start a Cleaning Company in Delaware
Thinking of starting a cleaning business in Delaware? Follow these steps to get your cleaning business up and running.
If you've been dreaming of owning a thriving cleaning business in 2023, now is the time to turn that dream into reality. Starting a cleaning company in Delaware can be a rewarding venture, offering opportunities for growth and financial independence. However, success in this competitive industry requires careful planning and execution. In this comprehensive guide, we'll give you the best and most up-to-date advice on how to start your cleaning business off on the right foot. We'll walk you through every important step, from choosing a business structure and registering your business to advertising your cleaning business and hiring employees in Delaware. Find out how to keep customers happy, run your business well, and stay ahead of the competition.
Table of Contents
ENTITY FORMATION
Choosing a Business Entity for Your Cleaning Company
When starting a cleaning business in Delaware, it's important to choose a legal structure that protects you from personal liability. While sole proprietorships or partnerships are options, using a corporation or limited liability company (LLC) offers better protection. Unlike some businesses, cleaning operations involve potential physical risks on clients' premises, with employees actively engaged. This makes it more likely that accidents or damage to property will happen, so it's important to keep personal liability and business liability separate.
When you incorporate as a corporation or an LLC, you create a separate legal entity. This protects your personal assets in case something bad happens. The business will be responsible for the costs, so your savings and belongings will be safe. Also, this legal status makes you look more professional and trustworthy, which builds trust with clients and business partners.
Even though forming a corporation or LLC requires paperwork and costs up front, the long-term benefits in terms of liability protection and reputation make it a smart investment for the future success and security of your cleaning business. By making this strategic choice, you give your business a solid foundation and can focus on providing great cleaning services without putting yourself at too much risk.
Useful Entity Formation Tips
Whether you decide to incorporate as a corporation, LLC, or partnership below you will find some useful online entity formation sources and sites we have vetted to help you get a step closer to opening your cleaning company:
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ZenBusiness Inc.
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LegalZoom
REGISTERING YOUR BUSINESS
Registering Your Cleaning Business in Delaware
The cost of registering a business in Delaware depends on your chosen business structure and local government requirements. It's essential to budget for these registration costs when starting your cleaning business in Delaware. Keep in mind that fees may vary slightly depending on where your business is and what other permits or licenses it may need. If you know about these costs ahead of time, it will be easier to plan and start your cleaning business.
The State of Delaware
The official website for Delaware.
Delaware Small Business Development Center (SBDC)
Advice, research, and resources for small business owners and entrepreneurs.
Delaware Division of Corporations
File business documents and find other business services.
Delaware Division of Revenue
Find information on taxes, access online filing, and forms.
EIN REGISTRATION
Applying for an Employer Identification Number (EIN)
Applying for an Employer Identification Number (EIN) for your home cleaning business in Delaware is a straightforward process that ensures proper tax identification. Here are the steps to obtain your EIN:
Determine the need for an EIN: An EIN is essential if your cleaning business has employees or operates as a partnership or corporation. It serves as a unique nine-digit identifier for tax purposes.
Gather necessary information: Prepare the required information before applying, including your legal business name, business address, and the name and Social Security number of a principal officer.
Apply online: The quickest and most convenient method is to apply online through the IRS website. By filling out the online application form, you can receive your EIN instantly.
Apply by mail or fax: If you prefer, you can apply by mail or fax. Complete Form SS-4 and submit it to the IRS. Keep in mind that this method may take several weeks to process.
Apply by phone: Another option is to apply by phone. Contact the IRS Business & Specialty Tax Line at 1-800-829-4933 to apply for your EIN over the phone.
Remember to have all your documents ready before applying, and be sure to review Delaware’s state laws for any additional requirements specific to your cleaning business. By obtaining an EIN, you establish your business's tax identity and pave the way for compliant operations and financial management.
CLEANING LICENSE
Do You Need a Cleaning License in Delaware?
Delaware does not have a state-wide licensing mandate for launching a cleaning business. Nevertheless, specific cities and counties may impose local regulations and business license prerequisites that aspiring entrepreneurs must adhere to. Stay informed about the local requirements to ensure compliance and a smooth start for your cleaning venture in Delaware.
ADDITIONAL LICENSE & PERMIT REQUIREMENTS
Delaware License and Permit Requirements
Even if you are a sole proprietor, you should think about getting a federal tax ID number, formally known as an Employer Identification Number (EIN). The application process is straightforward and can be conveniently completed online through the IRS website (irs.gov).
There will be a need for a number of other licenses and permits, such as:
Business license
Hazardous materials disclosure
Wastewater discharge permit
Fire code permit
State registration form for employers, and
State EPA identification number
Being aware of these regulatory requirements will ensure your business operates legally and without complications.
ADVERTISING & MARKETING
Advertising Your Cleaning Business In Delaware
In addition to word-of-mouth, you should consider advertising your new cleaning business to get more customers. When promoting your services, prioritize accuracy to build trust with potential clients. Be careful when using "free" offers, and make sure you understand any conditions that come with them. Additionally, make sure that the discounts that are advertised actually save money compared to regular prices. Highlight your unique selling points, such as eco-friendly practices or specialized cleaning techniques, to stand out from competitors. Both print and online ads for your business should be done professionally. Make sure your marketing is geared toward reaching your target audience. By following these guidelines, you can successfully advertise your cleaning business, bring in new customers, and establish a reputable brand image in the market.
CREDIT CARD PROCESSING
Accepting Payments for Your Cleaning Business
Ensuring efficient payment processing is vital for a successful cleaning business. Customers like having a variety of ways to pay, such as credit/debit cards, cash, checks, and online payment gateways. Adding online payment options to your website makes your business more accessible and easy to use.
Professional invoices and itemized receipts promote transparency in transactions. Utilizing POS systems for in-person payments ensures safe and quick transactions, while contactless options enhance security.
Subscription-based payment models for regular clients foster loyalty and predictability. Prioritizing data security with reputable payment processors safeguards customer information.
Clear payment terms, requests for deposits, and automatic reminders of due dates help people pay on time and improve cash flow. Keeping accurate records of transactions helps with accounting and keeping track of taxes.
Maintaining a courteous and professional approach in payment-related communication builds trust with clients. Having reliable customer support for questions about billing contributes to a positive payment experience.
BUSINESS INSURANCE
Obtaining Business Insurance
There are some risks that come with running a cleaning business, such as employees getting hurt on the job or accidental damage to customers' property. Additionally, generic business risks like fire or theft pose potential threats to your own business property. To reduce these risks, it is important to get comprehensive insurance coverage.
When looking for insurance, work with an agent who has worked with cleaning companies before. Get excellent general liability insurance to protect yourself from property damage, destruction, or injuries to clients. Make sure that your property insurance covers all the important parts of your business, like supplies and equipment. You and your employees should also have enough car insurance to protect you while you travel between work sites.
Lastly, depending on the rules and regulations in your area, it may be good for your business to look into getting a bond. Bonding provides an added layer of protection, assuring clients that you will fulfill your contractual obligations.
By getting the right insurance and bonding, you protect your cleaning business from things that could go wrong and show your clients that you are committed to giving them reliable and professional services.
HIRING STAFF
Hiring Employees in Delaware
As a cleaning business owner with employees, you need to know about important employment law issues to make sure you're following the law and that your business runs smoothly. In this industry, there can be a lot of employee turnover, so it's important to know about important parts of employment law, such as illegal discrimination and workers' compensation. Regarding the hiring process, learn how to:
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Craft a job application that avoids illegal questions
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Conduct reference checks and make pre-employment inquiries without violating privacy laws, and
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Ask questions that are both useful and legally permissible during the interviews
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Setup employee schedules
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Setup employee payroll service such as:
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Quickbooks
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ADP
Be aware of the employment laws that apply to cleaning businesses, such as those about minimum hourly wages, working with children, and showing proof that you can legally work. Keep up with any changes to the rules to stay in compliance.
Proceed with extreme caution if considering treating cleaning personnel as independent contractors. The IRS has strict rules about how to classify people as independent contractors. Misclassifications can lead to legal problems. Check out IRS Form SS-8, which lists the criteria the IRS uses to determine worker status.
By understanding and adhering to employment laws and regulations, you can protect your cleaning business, foster positive working relationships, and ensure a successful and legally compliant operation.
FREQUENTLY ASKED QUESTIONS
FAQs About Starting a Cleaning Business in Delaware
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Is Credit Card Processing Secure?As the owner of a small business, it is imperative that you remain vigilant against credit card fraud. Even though the majority of news stories focus on data breaches that have occurred at large retail chains, smaller businesses are just as susceptible to these types of attacks. There are two things that smaller businesses can do to strengthen the security measures of their credit card processing: Make sure that the credit card processor you choose is compliant with Payment Card Industry Data Security Standard known as PCI DSS compliant. At Mantra Payments we make sure to be up to date with our PCI DSS certification. Make sure to always use hardware that is up to industry standards and able to accept EMV chip cards. Since credit cards typically have a chip embedded in one end of the card, having the technology to read it makes the transaction significantly more secure. This is due to the fact that chips are much more difficult to forge than the conventional magnetic strips that are found on credit cards.
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What Is a Good Rate for Credit Card Processing?The fees associated with processing credit card transactions typically range from 2% to 3.5% of the total transaction amount. For example, for every $100 a small business makes in sales, the credit card processing fees could range anywhere from $2.00 to $3.50. These fees may represent a sizable outlay of money for a small business. At Mantra Payments we make sure to understand each small business individually and recommend a cheaper alternative that can lower the fee costs to 1.9% or cheaper per transaction overall.
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What Equipment Is Needed to Accept Credit Card Payments?Think about how you manage your small business, and the different forms of payments that you might accept to run it smoothly. In the modern world we live in today, it's not enough to only accept credit cards in person; other payment methods must also be taken into account. Consumers anticipate having the option to pay in person, over the phone, or online using a credit card, debit card, or mobile payment service (such as Apple Pay®, Google PayTM, or Samsung Pay), among other options. At Mantra Payments we offer a variety of credit card processing equipment options tailored to meet your business’s needs. Our most up-to-date point-of-sale systems offer reliability, security, and the all-in-one software and hardware needed to perform and accept payments. POS Systems We Offer: Virtual and online ecommerce terminals Payment terminals such as Clover Flex, Clover Mini, Clover Solo or DUO POS Systems Mobile payment services and credit/debit card reader such as Clover Go QR Codes Clover Tap Receipt and kitchen printers Cash drawers Barcode scanners Business tools such as sales tracking, reporting, and inventory management Employee management tools such as payroll integrations Customer reward and loyalty programs Gift card programs And many more
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What Additional Services Are Provided By Mantra Payments?Mantra Payments provides a number of additional services to help your business grow. We offer the following: Business lines of credit, small business loans, term loans, or merchant cash advances Website & Hosting Services Digital Marketing - SEO, PPC, Social Media Management Customer engagement and loyalty reward programs
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How do I set up and use my Mantra Payments devices?Don't worry! All of our equipment is pre-installed per your specifications and ready to go once you receive it. We offer one-on-one training if needed.
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Do I need any additional devices for my business?All devices are built to be used independently or together. Best part about our equipment, you can always purchase an additional device as your business grows.
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What types of credit cards can Mantra Payments devices accept?All of our Mantra Payments devices are able to accept all major debit and credit cards. Have your client choose between contactless, chip, or swipe. Full list of accepted cards: Visa Mastercard American Express Discover Diner Club Google Pay Apple Pay Samsung Pay EBT / Food Stamps
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I have submitted my information to purchase a credit card processing device. What are the next steps?Once you have submitted your inquiry, one of our team specialists will contact you to go over your information. Once that is done and approved you will receive your terminal within 5-7 business days.