Starting a cleaning business in Alabama typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in Alabama, including filing fees, licenses, insurance, labor laws, and local tips.
Why Start a Cleaning Business in Alabama?
Alabama has a low cost of living and growing cities. Huntsville is one of the fastest growing cities in the South. Birmingham has wealthy suburbs with high demand for cleaning.
The best part: cleaning services are not taxable in Alabama. This makes pricing simpler. You do not need to collect sales tax from your clients on cleaning jobs.
Alabama also has no state minimum wage. The federal rate of $7.25 applies. This gives you flexibility when starting out and hiring your first workers.
Read our general How to Start a Cleaning Business guide first. This Alabama guide adds the state-specific steps you need on top of those basics.
How Do You Choose a Business Structure?
You need to decide how to set up your business. Alabama offers two main choices for cleaning companies.
Sole Proprietorship
This is the simplest way to start. You do not file anything with the state. Alabama considers you a sole owner right away.
If you want a business name, file a trade name with your county probate judge. The fee is small.
The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.
Limited Liability Company
This is the better choice for most cleaning businesses. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.
To form one in Alabama, file a Certificate of Formation. You do this online through the Secretary of State website. The filing fee is $208.
Alabama does not require a separate annual report. However, you must pay the Alabama Business Privilege Tax each year. The minimum is $100 per year.
Choose a limited liability company. The $208 filing fee is a bit higher than some states. But you enter people's homes every day — the liability protection is worth the cost.
- sos.alabama.gov — File your Certificate of Formation for a limited liability company
How Do You Get an Employer Identification Number and Tax Accounts?
An Employer Identification Number is a free number from the federal government. You need it to open a business bank account. You also need it to file taxes and hire workers.
Apply for free at the Internal Revenue Service website. You get your number right away when you apply online.
Alabama Income Tax
Alabama has a state income tax. Rates range from 2 to 5 percent. Your cleaning business income passes through to your personal tax return.
You may need to make quarterly estimated payments. The Alabama Department of Revenue handles all state tax filings.
Business Privilege Tax
Every limited liability company in Alabama must pay the Business Privilege Tax. The minimum is $100 per year. This is filed with the Alabama Department of Revenue.
This takes the place of an annual report. Think of it as your annual fee to keep your company in good standing.
Cleaning Services and Sales Tax
Good news: cleaning services are generally not taxable in Alabama. Alabama taxes the sale of goods, not services. You do not need to collect sales tax on your cleaning services.
However, if you sell cleaning products to clients, those product sales are taxable. Keep your service charges separate from any product sales.
Cleaning services are not taxable in Alabama. This makes pricing simpler for you and your clients. No sales tax permits needed for your cleaning services.
- irs.gov — Apply for a free Employer Identification Number (never pay for this)
- revenue.alabama.gov — Alabama Department of Revenue — Business Privilege Tax and state tax filing
What Licenses and Permits Do You Need?
Alabama has no statewide business license for cleaning. There is also no special cleaning license at the state level. This keeps things simple.
However, most cities and counties in Alabama require local business licenses. This is one of the more important steps.
Local Business Licenses
Most Alabama cities require a business license or privilege license. Birmingham, Huntsville, and Mobile all have their own requirements. Check with your city clerk.
You may also need a county-level license. Alabama counties often require separate permits. Check with your county probate judge or revenue office.
Fees vary by city and county. Most range from $25 to $200 per year.
- sos.alabama.gov — Alabama Secretary of State — business entity filings
What Insurance Do You Need?
Insurance protects you from one bad day ending your business. Alabama requires some types of coverage. Here is what you need.
- General liability insurance — Covers property damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
- Workers' compensation insurance — Required in Alabama for employers with five or more employees. You must get coverage before your fifth hire starts
- Surety bond — Protects clients if an employee steals something. Not required but highly recommended. Costs $100 to $500 per year
- Commercial auto insurance — Needed if you use a vehicle for business. Alabama requires minimum liability coverage on all vehicles
For more details on each type of coverage, read our Cleaning Business Insurance Guide.
Workers' compensation is required in Alabama once you have five or more employees. You can hire up to four workers without it. But general liability insurance is still essential from day one.
What Are Alabama Labor Laws?
If you plan to hire workers, you need to follow Alabama labor laws from day one.
Minimum Wage
Alabama has no state minimum wage law. The federal minimum wage of $7.25 per hour applies to all workers.
Most cleaning businesses pay $10 to $16 per hour to attract good workers. The low cost of living means wages go further in Alabama than in high-cost states.
Worker Classification
Alabama follows federal standards for worker classification. Cleaning workers who follow your schedule usually count as employees. Classifying them wrong leads to fines.
When in doubt, hire them as employees.
Unemployment Insurance
When you hire employees, register for unemployment insurance. Register through the Alabama Department of Labor. New employers pay a starting rate.
- labor.alabama.gov — Alabama Department of Labor — unemployment insurance and employer information
What Safety Rules Apply?
Alabama uses federal workplace safety rules. The state does not have its own safety agency. Federal offices in Alabama oversee workplace safety.
Hazard Communication
You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on each product they handle. Show them what to do if a spill happens.
Heat Safety
Alabama summers are hot and humid. Workers face heat risks when cleaning without air conditioning. Make sure workers stay hydrated and take breaks.
Keep water in every vehicle. Watch for signs of heat illness during summer months.
How Do You Set Cleaning Prices in Alabama?
Alabama has a low cost of living. Prices are lower than national averages. But Huntsville and Birmingham suburbs support higher rates.
Typical pricing ranges in Alabama:
- Home cleaning (hourly) — $20 to $40 per hour
- Home cleaning (flat rate) — $90 to $230 for a standard 3-bedroom home
- Deep cleaning — $150 to $350 depending on home size
- Move-in or move-out cleaning — $175 to $400
- Vacation rental turnover — $80 to $250 per turnover (Gulf Shores)
- Office cleaning — $0.04 to $0.11 per square foot
Since cleaning services are not taxable, your quoted price is the final price. Use our Price Calculator to find the right rate for your area.
For detailed city-by-city pricing data, see our full Cleaning Business Prices in Alabama guide.
What Cleaning Niches Are Profitable in Alabama?
Alabama has cleaning niches that do especially well. The state's growing cities and Gulf Coast create many options.
Huntsville and Madison Cleaning
Huntsville is one of the fastest growing cities in the South. The space and defense industry brings high-income professionals. Madison is a wealthy suburb with large homes and strong demand.
Birmingham "Over the Mountain" Cleaning
Mountain Brook, Vestavia Hills, and Homewood are affluent suburbs south of Birmingham. These communities have some of the wealthiest families in the state. They pay well for quality cleaning.
Gulf Shores Vacation Rental Cleaning
Gulf Shores and Orange Beach are popular beach vacation spots. Thousands of rental properties need turnover cleaning during the busy season. This creates steady work from spring through fall.
College Town Cleaning
Auburn and Tuscaloosa are major college towns. Students and professors need cleaning. Move-out cleaning at the end of each semester stays busy. Game day cleaning is also in high demand.
Montgomery Government and Medical Cleaning
Montgomery is the state capital with government offices. The city also has medical facilities and a growing downtown. Commercial cleaning contracts provide steady income.
Huntsville is growing faster than almost any city in the South. If you live in the area, this is your best market. New homes and high-income workers create strong demand for cleaning.
How Do You Market a Cleaning Business in Alabama?
Getting clients in Alabama follows the same steps as most states. Here are strategies that work well.
Google Business Profile
Set up your profile with your city, services, and photos. Ask every happy client for a Google review. Most people search online first.
Facebook and Community Groups
Alabama residents are very active on Facebook. Join local community groups. Share helpful cleaning tips and build trust. Word of mouth spreads fast in Alabama communities.
Partner with Property Managers
Gulf Shores vacation rentals and Birmingham apartments need cleaning between guests and tenants. Offer property managers competitive rates for regular turnover work.
For a complete marketing plan, read our Marketing Your Cleaning Business guide and How to Get Cleaning Clients Fast.
How Much Does It Cost to Start in Alabama?
Alabama is affordable to start a cleaning business. The main costs are the filing fee and privilege tax.
- Limited liability company filing — $208 (one-time, through the Secretary of State)
- Business Privilege Tax — $100 minimum per year (filed with the Department of Revenue)
- Trade name filing — Small fee (if using a different business name)
- Local business license — $25 to $200 per year (varies by city and county)
- General liability insurance — $400 to $1,200 per year
- Workers' compensation insurance — Required once you have five employees (rates vary)
- Surety bond — $100 to $500 per year (recommended)
- Cleaning supplies and equipment — $200 to $500 to start
- Marketing (initial) — $100 to $500
What Is on Your Alabama Startup Checklist?
Follow these steps in order. Complete each one before moving on.
- Choose your business structure — Form a limited liability company at sos.alabama.gov ($208)
- Get an Employer Identification Number — Apply free at irs.gov
- Register for the Business Privilege Tax — File with revenue.alabama.gov ($100 minimum per year)
- Open a business bank account — Keep personal and business money separate
- Get your local business license — Check your city and county requirements
- Buy general liability insurance — Get at least $1 million in coverage
- Buy cleaning supplies — Start with the basics and upgrade as you grow
- Set your prices — Use our Price Calculator (no sales tax needed on cleaning services)
- Set up your Google Business Profile — This is your most important marketing tool
- Book your first clients — Tell friends, post on Facebook groups, connect with property managers
- Get workers' compensation before your fifth hire — Required for five or more employees
- Register for unemployment insurance — Required before your first employee starts
What Are the Best Tips for Alabama?
Here are practical tips for success in Alabama.
- No sales tax on cleaning — This is a big advantage. Your quoted price is the final price. Clients appreciate the simplicity
- Target Huntsville and Madison — This is the fastest growing market in the state. New homes and high-income workers create strong demand
- Serve Birmingham's wealthy suburbs — Mountain Brook and Vestavia Hills have families who pay well for quality cleaning
- Get your local licenses early — Alabama cities and counties both require licenses. Handle both before you start
- Pay the privilege tax on time — The $100 minimum is due annually. Late payment leads to penalties
- Prepare for hot summers — Keep water in every vehicle. Plan for heat breaks when cleaning without air conditioning
- Serve Gulf Shores vacation rentals — Beach tourism creates steady turnover cleaning demand from spring through fall
- Use MaidProfit to manage bookings — Track jobs, invoices, and profits with one tool
What Are the Guides for Nearby States?
If you serve areas near the Alabama border, these guides may help.
- Florida Guide — Start a cleaning business in Florida
- Georgia Guide — Start a cleaning business in Georgia
- Tennessee Guide — Start a cleaning business in Tennessee
- Mississippi Guide — Start a cleaning business in Mississippi
- Florida Cleaning Prices — Hourly rates and city-by-city pricing for Florida
- Georgia Cleaning Prices — Hourly rates and city-by-city pricing for Georgia
- Mississippi Cleaning Prices — Hourly rates and city-by-city pricing for Mississippi
- Tennessee Cleaning Prices — Hourly rates and city-by-city pricing for Tennessee
Where Do You Find Alabama Government Resources?
Here is a complete list of every government website in this guide. Bookmark these for later.
- Alabama Secretary of State — Register your business and file formation documents
- Alabama Department of Revenue — Business Privilege Tax and state income tax filing
- Alabama Department of Labor — Unemployment insurance and employer information
- Internal Revenue Service — Free Employer Identification Number application
- Small Business Administration — Free counseling and local assistance for small businesses
What Other Guides Can Help Your Business?
These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.
- How to Price Cleaning Services — Set profitable rates with flat-rate and hourly formulas
- Cleaning Business Insurance Guide — General liability, bonding, and the coverage you need
- How to Get Cleaning Clients Fast — Fill your schedule with paying clients
- Marketing Your Cleaning Business — Online and offline strategies that bring real results
- Cleaning Business Taxes and Deductions — Every deduction you can claim and how to file
- How to Get Cleaning Contracts — Find and win residential and commercial contracts
- How to Hire and Train Cleaning Staff — Where to find workers and how to keep them
Start Your Alabama Cleaning Business Today
Alabama makes it affordable to start a cleaning business. No sales tax on services and a low cost of living give you a great head start.
Start by forming your limited liability company. Get your Employer Identification Number and register for the Business Privilege Tax. Buy insurance, get local licenses, and set your prices.
Then focus on getting clients through Google and local networking.
Huntsville is booming. Birmingham has wealthy suburbs. The Gulf Coast has beach tourism. Every successful Alabama cleaning company started with one owner and one first client. Take action today.