How to Start a Cleaning Business in Colorado: Complete Guide

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

Why Start a Cleaning Business in Colorado?

Colorado is one of the fastest-growing states. More people move here every year. That means more homes and offices need cleaning.

The state makes it easy to start a business. You can form a limited liability company for just $50. That is one of the lowest filing fees in the country.

Colorado also has unique niches other states lack. Ski towns need vacation rental cleaning year-round. The dry mountain air creates extra dust in homes.

These factors create strong demand for cleaning services.

How Do You Choose a Business Structure?

You need to decide how to set up your business. Colorado offers two main choices for cleaning companies.

Sole Proprietorship

This is the simplest way to start. You do not file anything with the state. Colorado considers you a sole owner right away.

If you want a business name, file a trade name statement. You file this with the Colorado Secretary of State. It costs $20.

This lets you use a name other than your own.

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 Colorado, file Articles of Organization online. You do this through the Secretary of State website. The filing fee is just $50.

That is one of the cheapest in the country.

You must file a periodic report every year. The annual report costs $25. If you file late, the fee goes up to $50.

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.

Colorado Income Tax

Colorado has a flat income tax rate of 4.4 percent. This applies to all business income. You report your business earnings on your personal state tax return.

Register your business with the Colorado Department of Revenue. Use Revenue Online at tax.colorado.gov. This portal handles all your state tax accounts.

Cleaning Services and Sales Tax

Good news for cleaning businesses. Cleaning services are not subject to state sales tax. You do not need to charge sales tax on your cleaning fees.

But there is one important exception. If you bill cleaning supplies as separate line items, those supplies are taxable. The state sales tax rate is 2.9 percent.

Many cities add their own local sales tax on top of that.

The simplest way to avoid this is to include supply costs in your flat service rate. Do not list supplies as separate charges on your invoices.

Withholding Tax

If you hire employees, you need a withholding tax account. This lets you send employee income taxes to the state. Set up your account through Revenue Online at tax.colorado.gov.

What Licenses and Permits Do You Need?

Colorado has no statewide business license. There is also no special cleaning or janitorial license at the state level. This keeps things simple.

However, most cities and counties require a local business license. Requirements vary a lot by where you are located. You must check with your specific city or county.

Local Business Licenses

Each city in Colorado sets its own license rules. Denver, Colorado Springs, and Boulder all have different requirements. If you serve clients in multiple cities, you may need a license in each one.

Use MyBizColorado

The state built a helpful one-stop portal called MyBizColorado. Visit mybiz.colorado.gov to find your requirements. It handles registration with multiple state agencies at once.

These include the Secretary of State, Department of Revenue, and Department of Labor.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Colorado has strict rules about certain 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 by Colorado law for all employers with any number of employees. Buy from private insurance carriers. The penalty for not having coverage is up to $500 per day
• Surety bond — Protects clients if an employee steals something. Not required by the state but highly recommended. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Colorado requires minimum liability coverage on all vehicles

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

What Are Colorado Labor Laws?

If you plan to hire workers, you need to follow Colorado labor laws from day one. Here are the key rules.

Minimum Wage

The Colorado state minimum wage is $15.16 per hour. But some cities set higher rates. You must pay the higher of the two.

The rate depends on where your employee works.

Here are some notable local minimum wages:

• Denver — $19.29 per hour (highest in the state)
• Boulder County — $16.82 per hour
• Tipped employees (state rate) — $12.14 per hour

Check your city's website for the current local rate. These amounts go up every year.

Worker Classification

Colorado follows federal standards for worker classification. You must decide if a worker is an employee or an independent contractor. Cleaning workers who follow your schedule usually count as employees.

Classifying them wrong leads to fines and back-pay penalties.

Unemployment Insurance

When you hire employees, you must register for unemployment insurance. Register through MyUI Employer+ at cdle.colorado.gov. The chargeable wage limit is $30,600 per employee.

You pay premiums on wages up to that amount.

What Safety Rules Apply?

Colorado uses federal workplace safety rules. The state does not have its own safety agency. Federal offices in Denver and Englewood oversee Colorado businesses.

Hazard Communication

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

Show them what to do if a spill or skin contact happens.

Injury Prevention

Have a plan to prevent common cleaning injuries. Slips, falls, and chemical burns are the main risks. Train your workers before they start cleaning.

Keep records of all training you provide.

The same federal rules that apply in other states apply here. You need hazard communication, safety data sheets, and injury prevention steps.

How Do You Set Cleaning Prices in Colorado?

Colorado's growing population means strong demand. But costs vary a lot by city. Denver prices are higher than smaller towns.

Mountain towns have their own pricing for vacation rentals.

Typical pricing ranges in Colorado:

• Home cleaning (hourly) — $30 to $60 per hour
• Home cleaning (flat rate) — $130 to $320 for a standard 3-bedroom home
• Deep cleaning — $200 to $450 depending on home size
• Move-in or move-out cleaning — $250 to $500
• Office cleaning — $0.06 to $0.17 per square foot

Prices in Denver, Boulder, and ski towns run at the high end. Smaller cities and rural areas tend toward the lower end.

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 Colorado?

Colorado has cleaning niches that do especially well. The state's unique geography and growth create special chances. Here are the top options.

Ski Resort and Vacation Rental Cleaning

This is the biggest niche unique to Colorado. Towns like Vail, Aspen, Breckenridge, and Steamboat Springs have thousands of vacation rentals. Property managers need fast turnover cleaning between guests.

Ski season brings huge demand from November through April.

Partner with property managers for steady winter work. Many will give you exclusive cleaning rights for their properties. This creates reliable, repeat income all season long.

Airbnb Cleaning in Mountain Towns

Short-term rentals in mountain towns need quick turnarounds. Guests check out in the morning and new guests arrive that afternoon. Hosts need reliable cleaners who show up on time every time.

You can charge premium rates for same-day turnovers.

Green and Eco-Friendly Cleaning

Colorado residents value the environment. Many people here prefer eco-friendly products. You can charge more for green cleaning services.

This niche helps you stand out from other cleaning companies.

Post-Construction Cleaning

Colorado is one of the fastest-growing states. New homes and buildings go up every year. Each one needs thorough cleaning before owners move in.

This specialty pays well and has less competition.

Move-In and Move-Out Cleaning

High population growth means constant turnover in housing. People move in and out of rentals all year. Property managers need this service regularly.

Build a few good relationships for steady work.

How Do You Market a Cleaning Business in Colorado?

Getting clients in Colorado follows many of the same steps as elsewhere. But a few strategies work especially well here.

Google Business Profile

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

Most people search online before hiring any service.

Nextdoor and Local Facebook Groups

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

When someone asks for a cleaner, your name will come up.

Partner with Property Managers

This is especially powerful in ski towns. Property managers handle dozens or hundreds of rentals. One partnership can fill your schedule for the entire season.

Offer them special rates or a referral bonus.

Target Eco-Friendly Clients

Many Colorado residents care about the environment. Market your green cleaning services on social media. Highlight the products you use and why they are better.

This sets you apart from other companies.

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 Colorado?

Colorado is one of the cheaper states to start a cleaning business. Here is what to expect.

• Limited liability company filing — $50 (one-time, through the Secretary of State)
• Annual periodic report — $25 per year ($50 if filed late)
• Trade name statement — $20 (if using a different business name)
• Local business license — Varies by city (check your local requirements)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required if you hire any 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 Colorado Startup Checklist?

Follow these steps in order. Complete each one before moving on.

1. Choose your business structure — Form a limited liability company at sos.state.co.us ($50)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Register through MyBizColorado — Use mybiz.colorado.gov for state registrations
4. Open a business bank account — Keep personal and business money separate
5. Get your local business license — Check your city or county requirements
6. Register with the Department of Revenue — Set up tax accounts at tax.colorado.gov
7. Buy general liability insurance — Get at least $1 million in coverage
8. Buy cleaning supplies — Start with the basics and upgrade as you grow
9. Set your prices — Use our Price Calculator and factor in Colorado costs
10. Set up your Google Business Profile — This is your most important marketing tool
11. Book your first clients — Tell friends, post on Nextdoor, reach out to property managers
12. Get workers' compensation insurance — Required before your first employee starts work

What Are the Best Tips for Colorado?

Here are practical tips for success in Colorado.

• Start solo to keep costs low — Colorado's low filing fees help you launch cheaply. Work alone until you have enough clients to justify hiring
• Target ski towns for big seasonal income — Vacation rental cleaning in Vail, Aspen, and Breckenridge pays premium rates during ski season
• Price higher in Denver — Denver's $19.29 minimum wage means your costs are higher. Set your prices to cover this
• Get multiple local licenses if needed — County-level licenses mean you may need one in each area you serve
• Sell regular dusting packages — Colorado's altitude and dry air create more dust. Monthly dusting is an easy upsell
• Use green products — Colorado residents love eco-friendly services. Market this to stand out from others
• Partner with ski resort property managers — One good relationship can fill your winter schedule
• Keep supplies off your invoices — Bundle supply costs into your flat rate to avoid sales tax issues
• Use MaidProfit to manage bookings — Track jobs across different service areas with one tool

What Are the Guides for Nearby States?

If you serve areas near the Colorado border, these guides may help.

Where Do You Find Colorado Government Resources?

Here is a complete list of every government website in this guide. Bookmark these for later.

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 Colorado Cleaning Business Today

Colorado makes it easy and affordable to start. The $50 filing fee is one of the lowest in the country. There is no statewide business license or special cleaning registration.

Start by forming your limited liability company. Get your Employer Identification Number. Buy insurance, find your local licenses, and set your prices.

Then focus on getting clients through Google and local partnerships.

The ski towns, growing cities, and eco-friendly culture create strong demand. Every successful Colorado cleaning company started with one owner and one first client. Take action today.