Launching your own cleaning business in Canada is easier than you think. We’ll walk through what you need to know about putting together a business plan, registering your business and getting insurance. We’ll also give you useful tips on how to spread the word about your new enterprise.
Regulations and licensing requirements for a cleaning business
The first step to starting a business is typically registering it with the government. If you intend to operate under your legal name, this isn’t necessary. However, if you want to name your cleaning company, you must register that name and your business with the government.
Depending on where you live, you may also need a business licence or permit. For example, to clean the interior or exterior of any building, you need a business licence in Calgary, but in Toronto, you only need a licence to clean the exterior of buildings.
Use BizPal to determine what permits and licences you need based on where you’re located in Canada.
What qualifications or training do you need to start a cleaning business?
You don’t need to meet any formal educational requirements to work as a cleaner or start your own cleaning business. However, you may need to pass a criminal record check if you’re cleaning in public venues with children or vulnerable people present, like a school or senior’s home.
Also, if you plan to handle hazardous cleaning chemicals, such as industrial-strength cleaners, you must comply with the Workplace Hazardous Materials Information System (WHMIS). This includes proper labelling, making safety data sheets accessible and obtaining WHMIS certification through an online platform or local training provider.
Choosing the right business structure for your cleaning business
Your business type determines how much tax you’ll pay on the money you make and how personally liable you’ll be for business debts.
Here are your main options.
- Sole proprietorship. You’ll continue to pay income tax and other remittances to the government as an individual. You personally will be held liable for business debts or lawsuits against your business.
- Partnership. This is essentially the same as a sole proprietorship, except profits are shared with your business partner(s). Under a general partnership, each partner is held personally liable. Under Limited Partnerships and Limited Liability Partnerships, only general partners (those who manage the business) are liable, while limited partners (investors) are not.
- Corporation. Here, your business becomes an entity in its own right, and your personal finances are separate from your business finances. In addition to filing your own personal tax return, you’ll also file a separate business tax return. Plus, you’ll have to pay yourself a wage from company profits. You can’t be held personally responsible for business debts and will have reporting and management responsibilities.
- Cooperative. Cooperatives are best for groups of people who share similar social or economic needs and want to operate a business democratically. In Canada, all cooperatives must be incorporated, either at the federal or provincial level. Cooperatives can be set up as for-profit, not-for-profit or charitable organizations.
Creating a business plan for your cleaning business
Unless you plan to apply for financing, you don’t need to create a business plan for your cleaning business. But doing so could still be helpful. Laying out your plan clearly will allow you to spot potential obstacles to your success or reasons why you might want to reconsider starting a business or explore other options.
A great cleaning business plan should include:
- Company overview. The name of the business and its owners, the business type and its address. Perhaps a short mission statement explaining your goals for the company.
- Your target market. Who will you market your services to and why? It pays to be as specific as possible. The better you know your audience, the easier it is to market to them.
- Products and services. A full list of what products and services are offered by your business, plus how much you will charge.
- Competitors. Who are your competitors? How does your business differ from theirs? Why is yours better?
- Marketing plan. Are you planning to distribute brochures? Where will you market your business? What’s your monthly marketing budget for each marketing platform?
- Financial plan. How much will it cost to launch your business? What are the estimated monthly running costs? What are your monthly sales forecasts? (You should list a minimum viable target amount, an average target amount and stretch targets for long-term growth.)
How to set up your cleaning business
To set up a successful cleaning business, follow these steps:
1. Decide on your services
Before you start your cleaning business, decide what your niche will be. Will you offer residential cleaning, commercial cleaning, or specialty cleaning like carpets or post-construction? Determining this will help you choose a business name and marketing plan later on.
2. Choose your business structure
Now that you know what business structures are available, you must choose one of the four. Typically, starting as a sole proprietor is the easiest and cheapest option, but incorporating gives you more legal protection.
3. Register your business
After choosing your structure, you can register your business (if you’re not using your legal name). Then, apply for a municipal business licence if necessary.
4. Apply for financing
Although starting a cleaning business typically has low startup costs, you may still need additional financing. Assess your current finances and estimated initial costs to determine whether that’s the case. If you don’t need a lot, a business credit card or line of credit may be a good option for purchasing small things like cleaning equipment. But you may need a term loan if you want to buy property or make any big purchases.
5. Buy commercial property and equipment
While commercial property isn’t necessary for most cleaning companies, you may want it for storage, employee operations or office space. Use your loan or own finances to purchase or rent the property, then buy any equipment you may need, such as:
- Vacuum cleaners
- Mops and buckets
- Brooms and dustpans
- Cleaning cloths
- Spray bottles
- Scrub brushes and sponges
- Floor buffers and polishers
- Carpet cleaners or steam cleaners
- Pressure washers
- Protective gear (gloves, masks, eyewear)
- Cleaning chemicals
6. Build your brand
Once you’ve completed all the prior steps, you’re ready to open your cleaning business. But you need customers. You may already have some from prior jobs or word of mouth, but creating a brand can help you expand. Design a logo, create simple business cards and set up a website and social media page. When the clients start coming in, focus on building trust with them to collect reviews and referrals.
Setting up business banking for your cleaning business
When it comes to handling your finances, you may be wondering, do I need a business bank account? Legally, if your cleaning business is a corporation or registered partnership, then the answer is yes. Even if you’re a sole proprietor, setting up a dedicated business account has plenty of benefits.
Separating your personal and business expenses makes it easier to track income, manage cash flow and prepare for tax season, while also helping you build a professional image with clients and vendors.
But, before you can decide what the best business bank account for you is, you need to choose between a traditional bank or a fintech. Traditional banks offer branch-based services with a full range of products, but they may come with higher fees and stricter account requirements. Fintechs often provide more flexible, digital-first solutions with lower fees.
Finder Score for business bank accounts
To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 20+ business bank accounts and 15+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
How much should you charge for cleaning services?
Most cleaners charge by the hour or by the size of the space being cleaned (square footage). The price ultimately depends on several key factors:
- The demand for your services
- The regions and cities you’re servicing
- Whether you’re cleaning houses or commercial spaces
- What your competitors are charging
Rates tend to be higher in larger cities than in smaller, less-populated areas. Hourly rates can range from $20–$50 or more, while surface area rates generally range from $0.05 to $0.17 per square foot.
If you plan to run a cleaning agency with multiple staff, you can usually get away with charging as much as 30% higher than the standard rate for cleaning services to cover overhead costs and administrative fees. You should also look over jobs ahead of time before giving clients a quote to make sure the rate you’re charging reflects the amount of work that needs to be done.
How to market your cleaning business
The number one rule of marketing is to know your audience and put yourself where they are. Domestic cleaning businesses will therefore market themselves differently from commercial cleaning businesses. Here are a few ideas:
- Flyers. If you’re a domestic cleaning business, sending out flyers can be useful. Deliver flyers directly to people’s mailboxes and pin them up in public places where homeowners are likely to see them. Just make sure you have permission first.
- Set up a website. Your website should contain all your business’s important information, including the type of services you offer. Ideally, you’ll be able to optimize your website for search terms that your customers will be searching for when looking up local cleaners.
- Use social media. Create social media pages and post content that your audience wants to consume. It doesn’t necessarily have to be about cleaning. An office cleaning company could post any content about improving your office space or tips for growing a small business. Be prepared to think outside the box.
- Have a referral scheme. Happy customers will be pleased to refer you to their friends, especially when you prompt them to do so. Perhaps you could even introduce an incentivized referral system.
- Invest in paid online marketing. While having a website and active social media accounts are important, they don’t matter if potential clients aren’t seeing your content. Consider investing in paid online marketing, like Google Ads or Facebook Ads, so you can appear at the top of search results or in your target audience’s social media feeds.
How do taxes work on a cleaning business?
How you pay and file your taxes depends on the business structure you choose. Sole proprietorships and partnerships must report their business income on their personal tax returns. Corporations need to file both a corporate tax return and a personal tax return.
You must file your personal and/or corporate tax returns between April and June, but pay what you’ll owe in monthly or quarterly installments throughout the year.
And, since you’re self-employed, you’ll have to contribute both the employer and employee percentages to the Canada Pension Plan (CPP). For 2025, the total contribution rate you’ll pay is 11.9% of your net income to a maximum of $8,068.20.
So, to estimate how much you need to set aside, let’s look at the relevant tax rates for 2025.
Federal income tax rates:
- 15% on the portion of taxable income that’s $57,375 or less, plus
- 20.5% on the portion of the taxable income over $57,375 up to $114,750, pls
- 26% on the portion of taxable income over $114,750 up to $177,882, plus
- 29% on the portion of taxable income over $177,882 up to $253,414, plus
- 33% on the portion of taxable income over $253,414
Federal corporation income tax rates:
- The federal tax rate is 15% (after the general tax reduction and federal tax abatement).
- If you’re eligible for the small business deduction, your federal tax rate would be further lowered to 9%
Provincial income tax rates for Ontario, as an example:
- 5.05% on the portion of taxable income that’s $52,886 or less, plus
- 9.15% on the portion of taxable income over $52,886 up to $105,775, plus
- 11.16% on the portion of taxable income over $105,775 up to $150,000, plus
- 12.16% on the portion of taxable income over $150,000 up to $220,000, plus
- 13.16% on the portion of taxable income over $220,000
Provincial corporation income tax rates
- If you’re eligible for the small business deduction, your provincial corporate tax rate would be 3.2% for eligible income up to $500,000
- 11.5% for all other provincial corporation income
Also, if you make $30,000 gross income or more in four consecutive calendar quarters (a period of three months beginning on the first day of January, April, July or October in each calendar year), you’ll have to charge your clients GST/HST. Then, you’ll be assigned a monthly, quarterly or annual reporting period to file your GST/HST return.
Here are the GST/HST rates you’d charge based on your location:
- 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan and Yukon
- 13% (HST) in Ontario
- 14% (HST) in Nova Scotia
- 15% (HST) in New Brunswick, Newfoundland and Labrador and Prince Edward Island
This means, if your net income is $50,000, you live in Ontario and your cleaning business is a sole proprietorship, you’ll need to pay the following:
- $7,500 in federal taxes
- $2,525 in provincial taxes
- $4,165 in CPP contributions
- $7,500 in HST
- Total = $21,690
Getting insurance for your cleaning business
Not all insurers offer the same options, but you may find the following types of coverage helpful for your cleaning business:
- Commercial property. Provides coverage for lost, stolen or damaged equipment.
- Personal injury. Helps cover costs associated with recovering from a work-related injury.
- General liability. This protects you and your employees if legal action is brought against your business for damages done to a client’s person or property.
- Lost key coverage. Covers key replacement costs for you and your employees.
- Commercial auto coverage. Get car insurance for vehicles you use for business, including supply vans, trucks and regular passenger vehicles.
- Janitorial bonds. Covers damages related to employee theft and bad work performance. While you’re not legally required to get a janitorial bond, some clients prefer cleaning companies that are bonded.
Some insurance providers offer insurance coverage tailored specifically to cleaning businesses, so it’s possible to get multiple types of coverage in one policy.
Bottom line
Starting a cleaning business doesn’t have to be hard, as long as you understand the requirements. From choosing the right business structure to setting your rates and getting insured, each step plays a key role in your long-term success. If you need additional financing to start your cleaning business, compare some of the best small business loans in Canada to find one that’s right for you.
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