Starting a cleaning business in Iowa 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 Iowa, including filing fees, licenses, insurance, labor laws, and local tips.
Why Start a Cleaning Business in Iowa?
Iowa is one of the cheapest states to start a cleaning business. The filing fee for a limited liability company is just $50. That is one of the lowest in the country.
Des Moines is the largest city with over 700,000 people in the metro. The economy is stable and diversified. Insurance companies, financial firms, and tech startups all call Des Moines home.
Cleaning services are not taxable in Iowa. This means simpler billing and no extra paperwork for collecting sales tax.
Read our general How to Start a Cleaning Business guide first. This Iowa 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. Iowa 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. Iowa considers you a sole owner right away.
If you want a business name, file a fictitious name with the county recorder. The fee varies by county but is usually $5 to $25.
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 Iowa, file a Certificate of Organization. You do this online through the Secretary of State website. The filing fee is just $50.
Iowa requires a biennial report every two years. There is no fee for the report. This makes Iowa one of the cheapest states to maintain a company.
Choose a limited liability company. At just $50 with no biennial report fee, Iowa makes this the easiest decision. You enter people's homes every day — the liability protection is worth it.
- sos.iowa.gov — File your Certificate of Organization 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.
Iowa Income Tax
Iowa has a flat state income tax rate of 3.9 percent. This recent simplification makes tax planning easier. Your cleaning business income passes through to your personal tax return.
You may need to make quarterly estimated payments. The Iowa Department of Revenue handles all state tax filings.
Cleaning Services and Sales Tax
Good news: cleaning services are not taxable in Iowa. Residential and commercial cleaning are both exempt from sales tax.
This makes your billing simple. The price you quote is the price the client pays. No extra tax to calculate or collect.
Cleaning services are not taxable in Iowa. This simplifies your pricing and billing. The price you quote is the final price clients pay.
- irs.gov — Apply for a free Employer Identification Number (never pay for this)
- tax.iowa.gov — Iowa Department of Revenue — business tax registration
What Licenses and Permits Do You Need?
Iowa has no statewide business license. There is also no special cleaning license at the state level. This keeps things simple.
Some cities may require local business licenses. Requirements vary by where you are located. Check with your city clerk.
What Insurance Do You Need?
Insurance protects you from one bad day ending your business. Iowa 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 Iowa for all employers. You must get coverage before your first 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. Iowa 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 Iowa for all employers. Get coverage before your first worker starts. Buy from private insurance carriers.
What Are Iowa Labor Laws?
If you plan to hire workers, you need to follow Iowa labor laws from day one.
Minimum Wage
Iowa's minimum wage is $7.25 per hour. This matches the federal rate. However, most cleaning businesses pay much more to attract workers.
Most cleaning companies pay $13 to $18 per hour. The Des Moines market needs higher wages to compete for talent.
Worker Classification
Iowa 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 Iowa Workforce Development. New employers pay a starting rate.
- iowaworkforcedevelopment.gov — Iowa Workforce Development — unemployment insurance and employer information
What Safety Rules Apply?
Iowa has its own workplace safety program called Iowa OSHA. It is run by Iowa Workforce Development. The rules are similar to federal standards.
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.
Winter Safety
Iowa winters bring snow, ice, and cold temperatures. Workers travel between jobs in dangerous conditions. Keep emergency kits in vehicles and have winter tires ready.
How Do You Set Cleaning Prices in Iowa?
Iowa has a low cost of living. Des Moines supports moderate rates. Smaller cities need lower prices.
Typical pricing ranges in Iowa:
- Home cleaning (hourly) — $22 to $45 per hour
- Home cleaning (flat rate) — $100 to $250 for a standard 3-bedroom home
- Deep cleaning — $170 to $380 depending on home size
- Move-in or move-out cleaning — $190 to $420
- Office cleaning — $0.05 to $0.12 per square foot
Since there is no sales tax on cleaning, 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 Iowa guide.
What Cleaning Niches Are Profitable in Iowa?
Iowa has cleaning niches that do especially well. The mix of cities, college towns, and rural areas creates many options.
Des Moines Metro Residential Cleaning
Des Moines has growing suburbs like West Des Moines, Ankeny, and Waukee. These families pay well for quality cleaning. New homes create steady demand.
Iowa City College Town Cleaning
Iowa City is home to the University of Iowa. Over 30,000 students live here. Move-out cleaning at the end of each semester is especially busy.
Insurance and Financial Office Cleaning
Des Moines is a major insurance hub. Companies like Principal, Nationwide, and EMC have large offices. Commercial contracts with these firms provide stable income.
Agricultural Community Offices
Iowa is a major farming state. Agricultural businesses, grain offices, and rural medical clinics need regular cleaning. Less competition exists in these areas.
Quad Cities Cross-Border Cleaning
The Quad Cities area spans the Iowa-Illinois border. You can serve clients on both sides. This doubles your potential market in one metro area.
The Des Moines suburbs are booming. Ankeny and Waukee are among the fastest-growing cities in the Midwest. New homes mean new clients who need cleaning from day one.
How Do You Market a Cleaning Business in Iowa?
Getting clients in Iowa 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.
Community Connections
Iowa is a friendly, community-focused state. Word of mouth is powerful here. Join your local chamber of commerce. Sponsor community events.
Property Manager Partnerships
Des Moines and Iowa City have growing rental markets. Property managers need move-out cleaning between tenants. Offer them reliable service and special rates.
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 Iowa?
Iowa is one of the cheapest states to start a cleaning business. The $50 filing fee and free biennial report are hard to beat.
- Limited liability company filing — $50 (one-time, through the Secretary of State)
- Biennial report — Free (every two years)
- Fictitious name — $5 to $25 (if using a different business name, filed with county)
- Local business license — Varies by city (many Iowa cities do not require one)
- General liability insurance — $400 to $1,200 per year
- Workers' compensation insurance — Required once you hire (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 Iowa Startup Checklist?
Follow these steps in order. Complete each one before moving on.
- Choose your business structure — Form a limited liability company at sos.iowa.gov ($50)
- Get an Employer Identification Number — Apply free at irs.gov
- Register with the Department of Revenue — Set up your state tax account at tax.iowa.gov
- Open a business bank account — Keep personal and business money separate
- Check local business license requirements — Some cities may need a permit
- 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 on cleaning)
- Set up your Google Business Profile — This is your most important marketing tool
- Book your first clients — Tell friends, join your chamber of commerce, reach out to property managers
- Get workers' compensation before hiring — Required for all Iowa employers
- Register for unemployment insurance — Required before your first employee starts
What Are the Best Tips for Iowa?
Here are practical tips for success in Iowa.
- Take advantage of the $50 filing fee — Iowa is one of the cheapest states to form a limited liability company. Do it today
- No sales tax means simpler billing — Your quoted price is the final price. Clients love this clarity
- No biennial report fee — You still need to file the report, but there is no cost. Just do not forget to file it
- Target Des Moines suburbs — Ankeny, Waukee, and West Des Moines are growing fast with new homes
- Serve the Iowa City college market — Move-out cleaning pays well at semester end
- Prepare for harsh winters — Keep emergency kits in your vehicle. Have a plan for snow days
- Consider the Quad Cities market — You can serve clients in both Iowa and Illinois from one location
- Use MaidProfit to manage bookings — Track jobs, invoices, and employee hours with one tool
What Are the Guides for Nearby States?
If you serve areas near the Iowa border, these guides may help.
- Minnesota Guide — Start a cleaning business in Minnesota
- Wisconsin Guide — Start a cleaning business in Wisconsin
- Illinois Guide — Start a cleaning business in Illinois
- Missouri Guide — Start a cleaning business in Missouri
- Nebraska Guide — Start a cleaning business in Nebraska
- South Dakota Guide — Start a cleaning business in South Dakota
- Minnesota Cleaning Prices — Hourly rates and city-by-city pricing for Minnesota
- Wisconsin Cleaning Prices — Hourly rates and city-by-city pricing for Wisconsin
- Illinois Cleaning Prices — Hourly rates and city-by-city pricing for Illinois
- Missouri Cleaning Prices — Hourly rates and city-by-city pricing for Missouri
Where Do You Find Iowa Government Resources?
Here is a complete list of every government website in this guide. Bookmark these for later.
- Iowa Secretary of State — Register your business and file formation documents
- Iowa Department of Revenue — State tax registration and filing
- Iowa Workforce Development — Unemployment insurance, Iowa OSHA, 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 Iowa Cleaning Business Today
Iowa offers the lowest startup costs in the country for a cleaning business. The $50 filing fee, no sales tax on cleaning, and free biennial report make this an easy choice.
Start by forming your limited liability company. Get your Employer Identification Number and register with the Department of Revenue. Buy insurance and set your prices.
Then focus on getting clients through Google and local connections.
The growing Des Moines suburbs and college towns create steady demand. Every successful Iowa cleaning company started with one owner and one first client. Take action today.