How to Start a Cleaning Business in Arizona: Complete Guide

Starting a cleaning business in Arizona 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 Arizona, including filing fees, licenses, insurance, labor laws, and local tips.

Why Start a Cleaning Business in Arizona?

Arizona is one of the cheapest states to start a cleaning business. The filing fee for a limited liability company is just $50. There are no annual report fees to worry about.

The Phoenix metro area is one of the fastest growing in the country. More people move to Arizona every year. More homes and offices mean more demand for cleaning services.

Arizona also has a huge snowbird season. Wealthy retirees from cold states flock to Scottsdale and Mesa. They arrive from October through April.

They need regular cleaning while they enjoy the warm weather. This creates a built-in wave of seasonal demand.

How Do You Choose a Business Structure?

Your first decision is how to set up your business. Arizona offers two main choices for new cleaning companies.

Sole Proprietorship

This is the simplest way to start. You do not need to file anything with the state. Arizona treats you as a sole proprietor when you begin doing business.

If you want a business name, file a trade name. You file this with the Arizona Secretary of State. The fee is only $10.

You can do it online at azsos.gov.

The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.

Limited Liability Company

A limited liability company 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.

Here is the key difference in Arizona. You file your limited liability company with the Arizona Corporation Commission. You do not use the Secretary of State.

Most other states use the Secretary of State. Arizona does it differently.

The filing fee is just $50. That is one of the lowest in the country. You can also pay $85 for faster processing.

There are no annual report fees in Arizona. This saves you hundreds of dollars every year.

Arizona does have a publication requirement. You must publish a notice of your new company within 60 days.

In Maricopa and Pima counties, the Arizona Corporation Commission handles this online. There is no extra cost.

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.

Arizona Tax Advantages

Arizona has major tax advantages for cleaning businesses. The state has a very low flat income tax rate. This keeps more money in your pocket.

Here is the best part. Cleaning services are not taxable in Arizona. Proposition 126, passed in 2018, added this protection to the state constitution.

It prevents the state or any city from taxing services not already taxed. This means you never collect tax on your cleaning services.

You only need a Transaction Privilege Tax license if you sell physical products. If you only provide cleaning services, you likely do not need one.

Joint Tax Application

Arizona uses a Joint Tax Application, also called Form JT-1. This single form covers both your tax and employer registration. You file it through the AZTaxes portal.

It saves you time by handling everything in one step.

What Licenses and Permits Do You Need?

Arizona has no state-level business license. There is no special cleaning license or janitorial permit at the state level either. This keeps things simple.

However, most cities and towns require a local business license. Check with your city or town clerk. Fees vary by location but are usually low.

There is no state permit finder tool in Arizona. You need to call or visit your local city hall.

What You Do Not Need

Unlike some states, Arizona does not require a janitorial employer registration. You do not need a seller's permit for cleaning services. There is no annual franchise tax.

Arizona keeps things simple for small business owners.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Arizona has strict rules about workers' compensation. 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 by Arizona law the moment you hire your first employee. Not having it is a felony in Arizona. You buy this from private insurance carriers
• Surety or fidelity bond — Protects clients if an employee steals something. Not legally required, but many clients will ask for it. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Arizona minimums are $25,000 per person and $50,000 per accident. Property damage coverage starts at $15,000

For more details on each type of coverage, read our Cleaning Business Insurance Guide.

What Are Arizona Labor Laws?

Arizona has simpler labor laws than many other states. But you still need to follow them from day one.

Worker Classification

Arizona follows federal standards for worker classification. It does not have its own strict test like some states. You still need to classify workers correctly.

Most cleaners who work for your company are employees, not independent contractors. When in doubt, treat them as employees.

Minimum Wage

The Arizona state minimum wage is $15.15 per hour. Some cities set their own higher rates. You must pay the higher of the two.

• Arizona state rate — $15.15 per hour
• Flagstaff — $18.35 per hour (no tipped employee difference)

Check your city's website for any local minimum wage rules. These amounts can change each year.

Employer Registration

When you hire employees, you must register for unemployment insurance. You do this through the Arizona Department of Economic Security. You can register online at their website.

You also need to file the Joint Tax Application through AZTaxes. This covers your state tax withholding and employer accounts in one form.

What Safety Rules Apply in Arizona?

Arizona has its own state workplace safety program. It is called the Arizona Division of Occupational Safety and Health. It operates under the Industrial Commission of Arizona.

Hazard Communication Program

You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on what chemicals they handle. Show them how to use products safely.

Explain what to do if there is a spill or skin contact.

Injury Prevention

Keep records of any workplace injuries. Train workers on safe lifting, ladder use, and proper use of cleaning tools.

Arizona follows the same core requirements as the federal workplace safety agency. Good training keeps your workers safe and out of trouble.

How Do You Set Cleaning Prices in Arizona?

Arizona's lower cost of doing business means higher profit margins for you. You have no franchise tax, no annual report fees, and no tax on services. Factor these savings into your pricing.

Typical pricing ranges in Arizona:

• Home cleaning (hourly) — $25 to $55 per hour depending on your city
• Home cleaning (flat rate) — $120 to $280 for a standard 3-bedroom home
• Deep cleaning — $180 to $400 depending on home size and condition
• Move-in or move-out cleaning — $200 to $500 or more
• Office cleaning — $0.05 to $0.15 per square foot

Prices at the high end are common in Scottsdale, Paradise Valley, and parts of Phoenix. Prices at the lower end are more typical in Tucson, Mesa, and smaller cities.

Use our Price Calculator to find the right rate for your area. For detailed pricing methods, read our Pricing Guide.

What Cleaning Niches Are Profitable in Arizona?

Arizona has cleaning niches that do very well because of the state's unique market. Here are the top options:

Snowbird and Seasonal Resident Cleaning

This is Arizona's biggest cleaning niche. Thousands of wealthy retirees move to Arizona from October through April. They come from cold states to enjoy the warm winter.

Cities like Scottsdale, Mesa, and Sun City fill up with snowbirds. They need regular weekly cleaning during their stay. Many prefer the same cleaner every week.

Build a loyal base and they will come back every year.

Vacation Rental Turnover Cleaning

Scottsdale, Sedona, and Lake Havasu are popular vacation rental markets. Hosts need fast, reliable cleaning between guests. You can build steady work by partnering with vacation rental hosts.

The work is often last-minute, which means less competition.

Pool Area and Outdoor Cleaning

Dust is a constant problem in Arizona. Dust storms blow sand and dirt onto patios, pool decks, and outdoor living spaces. Many Arizona homes have outdoor areas that need regular cleaning.

Offer post-storm cleaning packages for extra income after dust storms.

New Construction Cleaning

The Phoenix metro area is one of the fastest growing in the country. New homes and buildings go up every day. They all need thorough cleaning before owners move in.

This specialty pays well and faces less competition.

How Do You Market a Cleaning Business in Arizona?

Getting clients in Arizona follows many of the same steps as anywhere else. But a few strategies work especially well here.

Google Business Profile

This is the most important free marketing step. Set up your Google Business Profile with your city name, services, and photos. Ask every happy client for a Google review.

Most Arizona residents search online before hiring a cleaning service.

Nextdoor and Local Facebook Groups

Arizona residents are active on Nextdoor and local Facebook groups. Join groups for your service area. Share helpful cleaning tips.

When someone asks for a cleaner, your name will come up. Focus on being helpful first, not selling.

Partner with Vacation Rental Hosts

Reach out to Airbnb and vacation rental hosts in Scottsdale and Sedona. They need reliable, fast turnover cleaning. One good partnership can bring you steady work all year long.

Offer a quick response time. That sets you apart from other cleaners.

Connect with Snowbird Communities

Many snowbird communities have newsletters and bulletin boards. Post your services in these communities. Ask happy snowbird clients for referrals.

Word of mouth spreads fast in close-knit retirement communities.

Build Relationships with Retirees

Arizona has many year-round retirees who prefer regular weekly cleaning. They want someone they trust in their home. Be reliable and friendly.

Build a loyal base of weekly clients. They will refer you to their friends and neighbors.

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 Arizona?

Arizona is one of the cheapest states to start a cleaning business. Here is a breakdown of what to expect:

• Limited liability company filing — $50 (one-time, through the Arizona Corporation Commission)
• Expedited filing — $85 (optional, for faster processing)
• Trade name registration — $10 (only if using a Doing Business As name)
• Annual report fees — $0 (Arizona has no annual report fees)
• Local business license — Varies by city (usually low)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Varies (only if you have employees)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Arizona Startup Checklist?

Here is a step-by-step list to follow. Complete each item before moving to the next:

1. Choose your business structure — Form a limited liability company at azcc.gov ($50)
2. Publish your notice — Complete within 60 days of filing
3. Get an Employer Identification Number — Apply free at irs.gov
4. Open a business bank account — Keep personal and business money separate
5. Get your local business license — Check with your city or town clerk
6. Buy general liability insurance — Get at least $1 million in coverage
7. Buy cleaning supplies — Start with the basics and upgrade as you grow
8. Set your prices — Use our Price Calculator and factor in Arizona costs
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, partner with vacation rental hosts
11. Register as an employer — File the Joint Tax Application at aztaxes.gov before hiring
12. Get workers' compensation insurance — Required before your first employee starts work

What Are the Best Tips for Arizona?

Here are practical tips from successful Arizona cleaning business owners:

• Take advantage of the low startup costs — The $50 filing fee and no annual reports save you hundreds each year. Other states charge much more
• Plan for snowbird season — October through April doubles demand in cities like Scottsdale and Mesa. Prepare staff and supplies ahead of time
• Offer post-storm cleaning packages — Dust storms are common in Arizona. Offer a special package for cleanup after storms hit
• Schedule around the heat — Arizona summers are extremely hot. Many clients prefer daytime cleaning when they are at work. The air conditioning keeps the home cool for your team
• Partner with vacation rental hosts — Scottsdale and Sedona have huge vacation rental markets. One partnership can bring steady work all year
• Build a loyal retiree base — Many retirees want regular weekly cleaning. They value trust and reliability. Serve them well and they will refer friends
• Keep your overhead low — Arizona gives you a head start with low fees and no service tax. Do not waste that advantage on unnecessary expenses
• Get your systems in place early — Use software like MaidProfit for scheduling, quoting, and invoices. It helps you manage seasonal demand spikes with ease

What Are the Guides for Nearby States?

Planning to expand beyond Arizona? Check out our guides for the states that border Arizona:

Where Do You Find Arizona Government Resources?

Here is a complete list of every government website mentioned in this guide. Bookmark these for easy access as your business grows.

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.

Start Your Arizona Cleaning Business Today

Arizona is one of the best states to start a cleaning business. The $50 filing fee, no annual reports, and no tax on services help you save. Add in the growing population and snowbird demand, and you have a great market.

Start by forming your limited liability company at the Arizona Corporation Commission. Get your Employer Identification Number. Buy insurance and check with your city for local permits.

Then set your prices and start finding clients.

Every successful cleaning company in Arizona started with one owner and one first client. The steps in this guide give you a clear path. Take action today.