How to Start a Cleaning Business in Illinois: Complete Guide

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

Why Start a Cleaning Business in Illinois?

Illinois has the third largest metro area in the country. Chicago and its suburbs are home to over 9.4 million people. That creates huge demand for cleaning services.

The state also has strong demand outside Chicago. Springfield, Champaign, and Rockford all need cleaners. You can find clients in any part of the state.

Cleaning services are not taxable in Illinois. This makes pricing simpler. You do not need to collect sales tax on your labor.

How Do You Choose a Business Structure?

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

Sole Proprietorship

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

If you want a business name, file an Assumed Business Name with the county clerk. Fees vary by county but are usually $25 to $50.

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 Illinois, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $150.

Illinois requires an annual report every year. The fee is $75. Mark your calendar so you do not miss this deadline.

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.

Illinois Income Tax

Illinois has a flat income tax rate of 4.95 percent. This applies to all income levels. Your cleaning business income passes through to your personal tax return.

You may need to make quarterly estimated payments. The Illinois Department of Revenue handles all state tax filings.

Cleaning Services and Sales Tax

Good news for Illinois cleaners. Cleaning services are generally not subject to sales tax. Illinois taxes the sale of goods, not most services.

However, if you sell cleaning products to clients, those product sales are taxable. Keep your service charges and product sales separate on invoices.

What Licenses and Permits Do You Need?

Illinois has no statewide business license for cleaning. There is no special cleaning license at the state level. This keeps things simple.

However, many cities and villages require local business licenses. Chicago has its own requirements that differ from the suburbs.

Chicago Business License

If you work in Chicago, you need a Limited Business License. Apply through the City of Chicago website. The fee varies based on your business type.

Chicago also requires registration with the city for tax purposes. The city has its own taxes on top of state and county taxes.

Suburban Licenses

Many suburbs require their own business licenses. Check with each village or city clerk where you plan to work. Fees are usually $25 to $200 per year.

Some home rule municipalities have extra rules. Home rule cities can create their own regulations beyond state law.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Illinois 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 Illinois for all employers with one or more employees. This includes part-time and family members. Illinois enforces this strictly
• 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. Illinois requires minimum liability coverage on all vehicles

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

What Are Illinois Labor Laws?

If you plan to hire workers, you need to follow Illinois labor laws from day one. Illinois has strong worker protections.

Minimum Wage

Illinois minimum wage is $14.00 per hour. Chicago has its own higher rate of $15.80 per hour. Cook County also has a higher minimum wage.

Most cleaning businesses in the Chicago area pay $15 to $22 per hour to attract good workers. Budget for higher labor costs in the metro area.

Paid Leave

Illinois requires paid leave for all workers. Employees earn one hour of paid leave for every 40 hours worked. This applies to all employers statewide.

Chicago has its own paid sick leave law that is even more generous. Know which rules apply to your area.

Worker Classification

Illinois takes worker classification seriously. Cleaning workers who follow your schedule are almost always employees. Misclassifying them as independent contractors leads to big fines.

When in doubt, hire them as employees. Illinois penalties for misclassification are severe.

Unemployment Insurance

When you hire employees, register for unemployment insurance. Register through the Illinois Department of Employment Security. New employers pay a starting rate.

What Safety Rules Apply?

Illinois has its own state workplace safety program. The Illinois Occupational Safety and Health Administration oversees workplace safety in the state.

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.

Right to Know

Illinois has a Toxic Substances Disclosure to Employees Act. This means workers have the right to know about every chemical they use on the job. Post information in a visible location.

How Do You Set Cleaning Prices in Illinois?

Illinois prices vary a lot by location. Chicago commands the highest rates. Downstate cities have lower prices.

Typical pricing ranges in Illinois:

• Home cleaning (hourly) — $30 to $65 per hour (Chicago metro); $22 to $40 per hour (downstate)
• Home cleaning (flat rate) — $140 to $350 for a standard 3-bedroom home (Chicago metro)
• Deep cleaning — $220 to $500 depending on home size and location
• Move-in or move-out cleaning — $250 to $550
• Office cleaning — $0.07 to $0.18 per square foot

No sales tax on cleaning services means your price is what clients pay. Use our Price Calculator to find the right rate for your area.

What Cleaning Niches Are Profitable in Illinois?

Illinois has many cleaning niches. The huge Chicago metro and downstate cities create different opportunities.

Chicago Suburb Luxury Cleaning

The North Shore suburbs are among the wealthiest in the country. Winnetka, Kenilworth, and Glencoe have high-end homes. These clients pay premium rates for quality cleaning.

Western suburbs like Naperville, Hinsdale, and Oak Brook also have strong demand. Focus on quality and reliability to win these clients.

Chicago High-Rise and Condo Cleaning

Downtown Chicago has thousands of condos and apartments. Many residents want regular cleaning. Building managers can refer you to tenants.

College Town Cleaning

Champaign-Urbana is home to the University of Illinois. Over 50,000 students create demand for cleaning. Move-out cleaning at the end of each semester is especially busy.

Government and Office Cleaning

Springfield is the state capital. Government offices need cleaning. The metro area also has many insurance and financial offices. Build relationships for steady contracts.

Post-Construction Cleaning

New building construction across the Chicago metro creates constant demand. Each project needs cleaning before occupancy. This specialty pays well and leads to repeat work.

How Do You Market a Cleaning Business in Illinois?

Getting clients in Illinois 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.

Nextdoor and Local Facebook Groups

Illinois residents are active on Nextdoor. Suburban Facebook groups are very popular. Join groups for your service area and share helpful tips.

Partner with Real Estate Agents

The Chicago area has a busy real estate market. Agents need move-in cleaning for new buyers. Build relationships with top agents in your service area.

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 Illinois?

Illinois has moderate startup costs. The higher minimum wage means higher labor costs when you hire.

• Limited liability company filing — $150 (one-time, through the Secretary of State)
• Annual report — $75 per year
• Assumed Business Name — $25 to $50 (if using a different business name, filed with county)
• Local business license — $25 to $200 per year (varies by city)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required once you hire (rates vary, strictly enforced)
• 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 Illinois Startup Checklist?

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

1. Choose your business structure — Form a limited liability company at ilsos.gov ($150)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Register with the Illinois Department of Revenue — Set up your state tax account
4. Open a business bank account — Keep personal and business money separate
5. Get your local business license — Check your city or village requirements
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 for your Illinois market
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, contact real estate agents
11. Get workers' compensation before hiring — Required for even one employee in Illinois
12. Register for unemployment insurance — Required before your first employee starts

What Are the Best Tips for Illinois?

Here are practical tips for success in Illinois.

• Start in a tight service area — Pick three to five nearby suburbs or neighborhoods. Expand only after you fill your schedule
• Budget for higher wages — At $14 per hour minimum statewide and $15.80 in Chicago, your labor costs are higher. Price your services to cover this
• Know your local license rules — Every suburb may have different requirements. Check before you start cleaning in a new area
• Target the North Shore — Wealthy suburbs like Winnetka and Kenilworth pay the highest rates in the state
• Prepare for winter — Chicago winters are brutal. Have a plan for snowy days. Keep winter supplies in your vehicle
• Build real estate relationships — Chicago's busy housing market creates steady move-in and move-out cleaning demand
• File your annual report on time — It is $75 every year. Missing it risks losing your company status
• Use MaidProfit to manage bookings — Track jobs, invoices, and scheduling with one tool

What Are the Guides for Nearby States?

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

Where Do You Find Illinois 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 Illinois Cleaning Business Today

Illinois offers one of the largest markets in the country. The Chicago metro alone has millions of potential clients.

Start by forming your limited liability company. Get your Employer Identification Number and register with the state. Buy insurance, check local licenses, and set your prices.

Then focus on getting clients through Google and local partnerships.

The wealthy suburbs, college towns, and growing metro areas create steady demand. Every successful Illinois cleaning company started with one owner and one first client. Take action today.