Your first commercial account: the basics before you sign

1. Your business, your EIN, and the W-9

Sole proprietor or LLC. As a sole proprietor, the law doesn’t separate your business from you: you can be personally liable for the business’s debts. An LLC protects you from that personal liability in most cases, and it is registered with the state where you work. (Source: SBA: Choose a business structure; SBA: Register your business)

Business name (DBA). If you work under a name other than your legal name, most states require you to register it. (Source: SBA: Register your business)

EIN. The IRS employer identification number is free: apply at irs.gov, and if it’s approved online you get it right away. Beware of websites that charge for it. (Source: IRS: Get an employer identification number)

W-9. Before they pay you, offices and property managers will ask for a Form W-9 with your business name and taxpayer ID. If you’re a sole proprietor with an EIN, you can enter the EIN instead of your Social Security number. (Source: IRS: Form W-9)

2. General liability insurance and the certificate (COI)

General liability insurance covers you if you cause injuries to other people or damage to property, including medical costs and lawsuits. It is the first thing clients ask for. (Source: SBA: Get business insurance)

A certificate of insurance (COI) is a document that shows you have the policy; ask your agent for one with the client’s name. The certificate doesn’t change your policy: if the client asks to be an “additional insured,” that is added to the policy with an endorsement. (Source: Texas Department of Insurance: certificates of insurance FAQ)

3. Workers’ comp and your crew: employees or 1099 contractors?

Workers’ compensation insurance is mandatory for most employers in every state except Texas. (Source: NAIC: Workers’ compensation insurance)

In Texas it is optional: without it you are a “non-subscriber,” and you must tell your workers in writing and file a notice with the state every year. (Source: Texas Department of Insurance: non-subscribers)

In Florida, non-construction businesses need it from 4 employees, full-time or part-time. In California, New York, and New Jersey, virtually every employer needs it, even with one employee. (Source: Florida DFS: workers’ comp coverage requirements; California DIR: workers’ comp for employers; New York WCB: coverage requirements; New Jersey DOL: workers’ comp employer requirements)

Look up your state’s rule in the Department of Labor’s list of state workers’ comp offices. Some clients also ask for your workers’ comp certificate. (Source: US Department of Labor: state workers’ compensation officials)

Employees or contractors (1099)? It doesn’t depend on what you call them: the IRS looks at the whole relationship (whether you control how and when the work is done, who pays for tools and expenses, and whether the work is ongoing), and no single factor decides it. If you treat an employee as a contractor without a reasonable basis, you can end up owing the payroll taxes. If you’re unsure, the IRS can decide with Form SS-8, which takes 6 months or more. (Source: IRS: Independent contractor (self-employed) or employee?)

Some states use a stricter “ABC test” that starts from the assumption that every worker is an employee: for example California, Massachusetts, and New Jersey. Talk to your accountant before you pay your crew as contractors. (Source: California Labor Commissioner: independent contractors (ABC test); Massachusetts General Laws c.149 §148B; New Jersey Department of Labor: independent contractors (ABC test))

If they really are contractors, get a W-9 from each one and report them on Form 1099-NEC when you pay one $2,000 or more in a year (payments from 2026; it used to be $600). The calculator adds 20% for payroll taxes and insurance because it assumes your crew are employees. (Source: IRS: Form 1099-NEC and independent contractors)

4. Janitorial bond

Some clients ask whether you are “bonded.” A janitorial bond is an agreement between three parties: your company, the client that requires it, and the company that issues it. It protects your clients if someone on your crew steals at the place where they work. A licensed surety company issues it; ask your insurance agent. (Source: DC DISB: business insurance for cleaning businesses)

5. Sales-tax permit

In some states, cleaning offices and other businesses is subject to sales tax, and in others it isn’t. From our review of state sources (October 2026), it is taxable in Connecticut, Florida, Maryland, Minnesota, New Jersey, New York, Ohio, Pennsylvania, Texas and Washington, D.C.; not taxable in Arizona, California, Colorado, Illinois, Massachusetts, Nevada, North Carolina and Virginia; in Washington it isn’t subject to sales tax, but your revenue pays the state B&O tax. In other states, check with your state or your accountant. Where it is taxable, register before your first sale.

Texas: janitorial cleaning of buildings is a taxable service, and you need a permit from the Comptroller. The permit is free, although you may be asked to post a security bond. (Source: Texas Comptroller: Pub. 96-259 (taxable services); Texas Comptroller: sales tax permit FAQ)

Florida: cleaning the inside of nonresidential buildings is taxable at 6% plus the county surtax, and anyone who sells that service must register with the Department of Revenue. Register online before your first sale: doing business without registering can cost a $100 fee. (Source: Florida DOR: GT-800015 (nonresidential cleaning); Florida Statutes §212.18)

See your state’s tax note in the calculator

6. Medical and dental offices: OSHA bloodborne pathogens

If your crew cleans medical, dental, or clinic spaces and could come into contact with blood or other body fluids, the federal OSHA Bloodborne Pathogens standard (29 CFR 1910.1030) applies. Your company, as the employer of your crew, must: (Source: OSHA: 29 CFR 1910.1030, Bloodborne pathogens)

• have a written exposure control plan and list which jobs carry that risk;
• train your crew before they start and at least once a year, free and during working hours;
• provide protective equipment (gloves and anything else needed) at no cost;
• offer the hepatitis B vaccine at no cost within 10 working days of assigning someone to that work.

Your crew should never pick up needles or other sharps: agree in writing that the office handles needles and sharps containers. Broken glass that may be contaminated is never picked up by hand: use a brush and dustpan, tongs, or forceps. Some duties are shared with the office, but training, the vaccine, and follow-up for your own staff are on you. (Source: OSHA: 29 CFR 1910.1030, Bloodborne pathogens; OSHA interpretation: shared responsibility (personnel providers))

States with their own OSHA plan, such as California, have an equal or stricter rule. In the proposal, tick the OSHA line only if it is true. (Source: OSHA: State Plans)

7. Before you price it: the walkthrough

Bring the walkthrough checklist: 24 items that change your price, such as floors, restrooms, trash, hours, and special areas.

Open the walkthrough checklist