Illinois does not require a special state cleaning license. You must register with the Illinois Secretary of State. You also need a local business license and state tax registration. Chicago has extra licensing requirements that differ from the rest of Illinois.
What Licenses Do You Need for a Cleaning Business in Illinois?
Illinois keeps things simple for cleaning businesses. There is no state-level cleaning license or permit. But you still need a few key registrations.
Here is what every Illinois cleaning business needs:
- Business registration — register your business name with the Illinois Secretary of State
- Local business license — most cities and counties require a local license or permit
- Employer Identification Number — required if you have employees or form a limited liability company
- State tax registration — register with the Illinois Department of Revenue
- Assumed name certificate — needed if your business name differs from your legal name
Need a full startup guide? Read our article on how to start a cleaning business in Illinois. It covers every step from planning to your first client.
How Do You Register Your Business in Illinois?
Registration depends on your business type. Most cleaning businesses start as a sole proprietorship or a limited liability company.
Sole Proprietorship
This is the simplest option. You do not need to file with the state. Just get a local business license from your city or county.
If you use a name other than your own, file an assumed name certificate. This is also called a Doing Business As filing. File it with your county clerk's office.
Limited Liability Company
A limited liability company protects your personal assets. If someone sues your business, your home and savings stay safe.
File your Articles of Organization with the Illinois Secretary of State. The filing fee is $150. You can file online through the state website.
After you file, you get a certificate. Then apply for your Employer Identification Number through the Internal Revenue Service website. This takes about 15 minutes.
Steps to Register
- Choose your business type — sole proprietorship or limited liability company
- Pick a business name — check the Illinois Secretary of State website for name availability
- File your paperwork — Articles of Organization for a limited liability company, or an assumed name certificate for a sole proprietorship
- Get your Employer Identification Number — apply free on the Internal Revenue Service website
- Register for state taxes — use the Illinois Department of Revenue online portal
- Get your local business license — contact your city or county clerk
What Taxes Do Cleaning Businesses Pay in Illinois?
Illinois has specific tax rules for cleaning businesses. The good news is that residential cleaning is not taxed.
Sales Tax
Residential house cleaning is exempt from Illinois sales tax. You do not charge sales tax when you clean homes.
Commercial cleaning is different. Cleaning offices, stores, or businesses is subject to Illinois sales tax. The state rate is 6.25 percent.
Local taxes may add more on top of that. Check your city's tax rate before setting prices.
Income Tax
Illinois has a flat income tax rate of 4.95 percent. Business income flows to your personal tax return. This applies to sole proprietorships and limited liability companies.
You must file quarterly estimated tax payments. The Illinois Department of Revenue sets the due dates each year.
Employment Taxes
If you hire employees, you must withhold Illinois income tax from their pay. You also pay unemployment insurance tax to the state.
Register as an employer through the Illinois Department of Employment Security. They will assign your tax rate.
What Insurance Is Required for Cleaning Businesses in Illinois?
Illinois does not require insurance for solo cleaners. But working without it is risky. Most clients will not hire a cleaner without proof of insurance.
General Liability Insurance
This covers damage to a client's property. If you break a vase or scratch a floor, this policy pays for it. Most cleaners pay $30 to $60 per month.
A standard policy covers $1 million per incident. That is enough for most residential cleaning businesses.
Workers Compensation Insurance
Illinois law requires workers compensation insurance if you have employees. This covers medical bills and lost wages if a worker gets hurt on the job.
There are no exceptions for small businesses. Even one employee triggers this requirement. Fines for not having it can reach $500 per day.
Surety Bond
A surety bond is not required by law. But it shows clients you are trustworthy. It pays the client if you or your team steals or causes serious damage.
Bonds cost $100 to $300 per year. Many cleaning businesses include bonding in their marketing. Learn more in our cleaning business insurance guide.
What Are the Extra Requirements for Cleaning Businesses in Chicago?
Chicago has its own licensing rules. These are on top of the state requirements. Do not skip these if you work in the city.
Chicago Limited Business License
Every cleaning business in Chicago needs a Limited Business License. Apply through the city's online business portal. The fee is about $250.
You must renew this license every two years. The city sends a reminder before it expires.
Cook County Registration
Register with the Cook County Clerk if your business name differs from your legal name. This is separate from any state filings.
Chicago Business Tax
Chicago charges a personal property lease transaction tax on some services. Cleaning businesses that work in commercial spaces may owe this tax.
Residential cleaning in Chicago is not subject to this tax. Check with the Chicago Department of Finance to be sure.
Chicago Home Repair Rules
You may need a Home Repair license if you also do light repairs. Standard cleaning does not need this.
Window washing above a certain height may require extra permits. Check with the city for details.
What Are Local Permit Requirements in Other Illinois Cities?
Each city in Illinois has its own rules. Some require a business license. Others only need a simple registration.
The table below shows requirements for major Illinois cities.
| City | License Required | Estimated Cost | Where to Apply |
|---|---|---|---|
| Chicago | Limited Business License | $250 | City of Chicago Business Portal |
| Aurora | General Business License | $50 to $100 | Aurora City Clerk |
| Naperville | Business Registration | $50 to $75 | Naperville Finance Department |
| Springfield | Business License | $50 to $100 | Springfield Office of Budget and Management |
| Peoria | Business License | $50 to $75 | Peoria City Clerk |
| Rockford | Business Registration | $50 to $100 | Rockford City Clerk |
Always call your city clerk before you start. Rules can change. Some cities also require a home occupation permit.
How Much Do Illinois Cleaning Business Licenses Cost?
The total cost to set up a legal cleaning business in Illinois is not high. Most owners spend $200 to $700 to get fully registered and licensed.
| Item | Cost | Required? |
|---|---|---|
| Limited liability company filing | $150 | Only for limited liability companies |
| Assumed name certificate | $5 to $50 | If using a business name |
| Employer Identification Number | Free | If you have employees or are a limited liability company |
| Local business license | $50 to $250 | Yes, in most cities |
| General liability insurance | $30 to $60 per month | Strongly recommended |
| Workers compensation insurance | $50 to $150 per month | Yes, if you have employees |
| Surety bond | $100 to $300 per year | Optional but recommended |
Your biggest ongoing costs are insurance and license renewals. Budget for these every year. For a full breakdown of all startup costs, see our Illinois cleaning business pricing guide.
What Are the Renewal and Compliance Deadlines?
Getting your licenses is only the first step. You must keep them current. Missing a renewal can lead to fines or a shut-down order.
Annual Compliance Timeline
| Task | Frequency | Deadline |
|---|---|---|
| Limited liability company annual report | Every year | Before the first day of the anniversary month |
| Local business license renewal | Every 1 to 2 years | Varies by city |
| Chicago Limited Business License renewal | Every 2 years | Before expiration date on license |
| Illinois income tax (quarterly estimates) | 4 times per year | April 15, June 15, September 15, January 15 |
| Sales tax filing (commercial cleaners) | Monthly or quarterly | 20th of the following month |
| Workers compensation insurance | Ongoing | Must stay active at all times |
| Unemployment insurance filing | Quarterly | End of the month after the quarter ends |
Illinois Limited Liability Company Annual Report
Every limited liability company in Illinois must file an annual report. The fee is $75. File it online through the Illinois Secretary of State website.
The report is due before the first day of the month your company was formed. If you filed in March, your report is due each year before March 1.
Penalties for Late Filings
Late annual reports come with a $100 penalty. If you miss the deadline by too long, the state can dissolve your company.
Late tax filings also trigger penalties and interest. The Illinois Department of Revenue charges both. Set calendar reminders so you never miss a date.
Keeping track of deadlines is easier with the right tools. MaidProfit helps you manage your cleaning business from one dashboard. See all features and stay on top of renewals.