How To Start A Cleaning Business In Connecticut (CT)

Welcome to our guide on how to start a cleaning business in Connecticut, US.

The cleaning industry offers high profitability and a relatively low cost start-up among others. It’s a $49 billion a year industry with a bright future ahead considering the increasing demand.

We’ll start a guide with a couple of information about the State of Connecticut as is important to know the state you’re about to base your cleaning business to.
How to start a cleaning business in Connecticut

The State Of Connecticut – An Overview

Connecticut resides in the northeaster part of the United States, also known as the New England region. It abuts with Massachusetts to the north, the state of New York to the west and the south and Rhode Island to the east. The state is named after the Connecticut River, the major US river that bisects the state. Hartford is the capital and most populous city of Connecticut. Much of the southern and western Connecticut is part of the New York metropolitan area. In fact, out of eight counties the state has, three are included in the New York City combined statistical area, also known as the Tri-State Area. The most popular county of Connecticut, Cheshire, New Heaven County, is also included in the Tri-State Area.

Economic Data

Connecticut is one of the three least expensive states of the United States of America. It is also the 4th most densely populated state and the 29th most populous of all states. The state’s gross product was $237 billion back in 2010 and the per capita income (2010 measurement) was $64,833 ranking 4th in the US for that metric. The unemployment rate was measured at 9.0% in 2011. The wealthiest town in Connecticut is considered to be New Canaan; the per capita personal income there is $85,459, one of the highest in the United States. The state’s capital city however, Hartford, isn’t as rich. It’s among the 10 poorest cities in America and the poorest in Connecticut in terms of income per capita. The median price for purchasing a home in Connecticut is $226.000. The state is home to the most multi-million dollar house properties in the Northeast with 3,3% of all homes priced over $1.000.000. That’s only second to California.

Based on that data, starting a cleaning business in Connecticut can be an above industry standard, profitable endeavor if you choose the right location and attract wealthy clients that is only natural to assume they’re actively looking to outsource their cleaning needs and can afford to pay for cleaning services in the long term. However, to approach such clients, you’ll have to try even harder to market and brand your business as well as to offer high quality services.

How To Start A Cleaning Business In Connecticut Step-By-Step

Step 1: Learn about the Industry, Educate Yourself, Plan Ahead. This is probably the single, most important step in our guide on how to start a cleaning business in Connecticut. The basic rules of entrepreneurship apply in your cleaning business start-up as well. Learning as much as possible for the industry is essential. You can start from this very website, we’re the number 1 information and resource website for cleaning businesses in the world. Start your search from our 5-part cleaning business start-up guide and make sure you read the rest of the articles published on this website to learn how to get your first clients, which client groups to target, how to promote your business and expand your reach and so much more. You can bookmark us and connect with us on social media like Twitter and Facebook to always stay updated with the latest information, cleaning business advice, cleaning tips, new markets to expand etc. For a successful start-up, make sure you’ve got all the resources you need.

Step 2: Franchise or Independent Business? Financing your cleaning company. Most cleaning businesses start independently, however you may want to start a franchise instead. We cover this topic in Part III of our general start-up guide if you need more information. Financing is covered in Part II; in the meantime, you should know that the federal government has setup a website for financing seekers you can visit here.

Step 3: Find a name for your cleaning business. Finding the right name for your cleaning business can be a time consuming procedure but considering that the name you pick up will follow you wherever you go, for years to come, it’d be wise to take your time to come up with a great name that offers brand-ability, that it’s easy to pronounce and recall. Read our cleaning business names article for more information and tips on picking a great name as well as a couple of root name ideas for you to extract your own, unique name.

Step 4: Register your business with the state of Connecticut. After you come up with a name for your cleaning business, you’ll want to check the USPTO for availability and possible trademark violations. You can also do that by visiting Connecticut’s Concord data base. Following that step, you should register a trademark for your business using a reputable firm to handle everything for you and make sure the process is done properly. Then, and after you’ve determined the legal structure of your business, either by yourself or by consulting with a lawyer, you can proceed with registering your cleaning business with the State of Connecticut. You can do that either by paper filing, completing and mailing the application, by visiting the local offices at Hartford or online. For more information, filling fees, registration forms etc, visit this link.

Step 5: Register a Domain Name. This is obviously optional but highly recommended in order to make sure your cleaning business can claim the internet presence it deserves in the future. Try registering a .com domain that is an exact match to the name you’ve chosen. If that’s not possible because the domain is taken, go for the next best thing. Registering a domain is extremely easy and it only costs about $10 a year. We recommend GoDaddy.com for your domain registrations and we suggest that you get ALL the domain extensions that correspond to your cleaning business name, just in case. That means that you should register both the .com, the .net and the .us to say the least ( .us domains are only available to U.S. residents ). Having a website designed for your cleaning business is truly vital and goes a long way boosting your profits. It is estimated that 97% of U.S. residents search online for local business; those are numbers you simply can’t ignore. We can help you build, host and promote a website at the best rates you can find in the market. We can afford such rates because we specialize in website design for cleaning businesses. Learn more here.

Step 6: Pick Your Location. This step is very important. It can very much determine the difference between starting a successful business or a mediocre business or worse. Connecticut is home to several wealthy households (see the introduction of this guide) so managing to locate your cleaning business close to them would probably be ideal. The ideal comes with higher start-up costs however, no matter what you do in life.  There are, of course, other factors to consider. Are there any other cleaning businesses where you think of locating yours? How well established are they? Can you compete? Before deciding on this matter, make sure you thoroughly research the surroundings of your location keeping in mind the kind of services you want to offer, the radius of your operations and more. You can get more information by reading this article but ultimately, the choice is yours and yours alone. Think twice and think again before making up your mind decisively.

Step 7: Get an Employer Identification Number. This is required for every U.S. employer. The E.I.N. is used to identify your business as an entity. You can apply online with the IRS to get your E.I.N.

Step 8:  Taxation. Another important step in our guide on how to start a cleaning business in Connecticut. When you register your business with the state of Connecticut, you will get a tax registration number (CT REG). Next, you’ll be able to use the online Taxpayer Service Center. For more information visit CT’s Department Of Revenue. As an employer, you’re also required to pay the Unemployment Insurance Tax.

The income tax rates on Connecticut residents are divided into six tax brackets based on an individual’s income: 3%, 5%, 5.5%, 6%, 6.5% and 6.7%. The state imposes a standard 6.35% sales tax. There are a number of both items and services that are not subject to taxation in Connecticut but unfortunately, yet logically, janitorial services are taxable. However, casual janitorial service providers (three or fewer residences per year) are NOT taxable.

In the state of Connecticut, there are NO additional taxes from local jurisdictions. The maximum property tax credit in Connecticut is $500. Property taxes in Connecticut are quite high compared to average, with the state’s residents paying the second highest property tax in the U.S.

Step 9: Get A Business Bank Account. Getting a business bank account is another requirement of your business. You need this step to be able to separate your business transactions from your personal ones.

Step 10: Insurance. Getting insurance is mandatory. Liability insurance is necessary, bonding insurance is recommended as some of your clients will ask for it prior to hiring you. You are also obliged by federal and state law to pay the Worker’s Compensation Insurance.

Step 11: Report New Hires and Re-Hires. Whenever your hire or re-hire an employee, you must report that to the Connecticut New Hire Reporting Center, usually within 21 days of the date the hire or re-hire took place.

Step 12: Comply with Connecticut’s Payroll Tax Recordkeeping Requirements. In Connecticut, you are required to keep the following records at the workplace for a minimum of three years for each employee you have working at your business:

  • Name, address, occupation and total hours worked per day / week.
  • The beginning and the end of each work period.
  • Total wages paid hourly, daily or weekly and total wages paid each pay period.
  • Additions or Deductions to and from wages for each period.
  • Overtime must be kept as a separate item.
  • Work certificates for minor employees.

Keep in mind that you must check with the local authorities for possible, more requirements for record-keeping.

Step 13: Learn about and comply with Federal Laws and Requirements. You should seek legal advice to learn about further requirements of your cleaning business in the State of Connecticut and/or the County you’ll be locating your business. You can get a first glimpse on basic requirements here.

This concludes our guide on how to start a cleaning business in Connecticut. Good luck!

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