How to Start a Cleaning Business in Maryland: Complete Guide

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

Why Start a Cleaning Business in Maryland?

Maryland is a small state with big earning power. It has over six million people packed into a compact area. The median household income is one of the highest in the country.

The Washington, D.C. suburbs bring steady demand. Montgomery County and Prince George's County are home to federal workers and government contractors. These busy professionals need reliable cleaning services.

Baltimore adds a large metro market with 2.8 million people. The Chesapeake Bay region draws tourists year-round. Ocean City brings seasonal vacation rental demand.

Maryland gives you many ways to build a cleaning business.

Why Maryland Is Great for Cleaning Companies

Maryland has several features that make it ideal for cleaning businesses. Here is what sets this state apart.

• High household incomes — Maryland ranks near the top for median income. Residents can afford to hire cleaning help
• Dense population — Over six million people in a small area means less driving between jobs
• Washington, D.C. suburbs — Thousands of federal workers and contractors live in Montgomery and Prince George's counties
• Military installations — Joint Base Andrews, Fort Meade, and the Naval Academy bring steady demand. Military families need regular cleaning help
• Tourism and vacation rentals — Ocean City and the Chesapeake Bay attract many visitors. Vacation homes need turnover cleaning
• Residential cleaning is tax-free — You do not collect sales tax on home cleaning in Maryland

How Do You Choose a Business Structure?

The first step is to decide how to set up your business. Maryland offers two main options for new cleaning companies.

Sole Proprietorship

This is the simplest way to start. You do not file formation papers with the state. Maryland considers you a sole proprietor when you begin doing business.

If you want to use a business name, you must file a trade name. File it with the State Department of Assessments and Taxation. This is also called a Doing Business As registration.

The downside is you have no personal protection. If something goes wrong on a job, 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.

To form one in Maryland, file Articles of Organization. You do this through Maryland Business Express online. The filing fee is $100.

There is also a small technology fee for online filing.

Every Maryland limited liability company must file an annual report. The fee is $300 per year. It is due by April 15 each year.

Missing this deadline can lead to penalties.

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 and file taxes.

Apply for free at the Internal Revenue Service website. You get your number right away online.

Maryland Income Tax

Maryland has a state income tax that ranges from 2 percent to 6.50 percent. The rate goes up as your income grows.

Every county in Maryland also adds a local income tax. County rates range from 1.75 percent to 3.20 percent.

Your total state and local income tax could reach 9.70 percent. Plan for this when you set your prices.

Sales Tax on Cleaning Services

This is one of the most important tax rules in Maryland. The state has a split system for cleaning services.

• Residential cleaning is exempt — If you clean homes for individuals, you do not charge sales tax
• Commercial cleaning is taxable — You must collect 6 percent sales tax on office, store, and commercial building jobs

If you offer both types of cleaning, keep separate records. Track which jobs are residential and which are commercial.

Collect and send the 6 percent tax to the state on all commercial work.

What Licenses and Permits Do You Need?

Maryland does not require a special statewide cleaning license. But you still need to register your business and get local permits.

State Business Registration

You must register your business with the State Department of Assessments and Taxation. If you formed a limited liability company, this step is already done. Sole proprietors should register their trade name here.

Local Business Licenses

Many cities and counties in Maryland require a local business license. The rules and fees vary by location. Here are some examples:

• Montgomery County — Business license required for all cleaning companies
• Baltimore City — Business license required. Apply through the city government
• Prince George's County — Local license required for service businesses

Contact your local county or city office to find out the exact permits you need. Fees are usually modest, ranging from $15 to $100.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Maryland 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 Maryland law for all employers with one or more employees. No exceptions for small businesses. You can buy from private carriers or Chesapeake Employers Insurance Company
• Surety bond — Protects clients if an employee steals something. Not required by the state, but many clients will ask for it. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Maryland requires all drivers to carry auto insurance

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

What Are Maryland Labor Laws?

Maryland has strong worker protections. If you plan to hire, you must follow these rules from day one.

Minimum Wage

The Maryland state minimum wage is $15.00 per hour. This applies to all employers, no matter the size. But some counties set higher rates.

• Montgomery County (large employers, 51 or more) — $17.65 per hour
• Montgomery County (mid-sized employers) — $16.00 per hour
• Montgomery County (small employers) — $15.50 per hour

You must pay the higher of the state or local rate. The rate depends on where your employee works.

Tipped Employees

If your cleaners receive tips, you can pay a direct wage of $3.63 per hour. But their tips must bring the total to at least the full minimum wage. If tips fall short, you must make up the difference.

Employer Taxes

When you hire employees in Maryland, you pay state unemployment insurance taxes. Register with the Maryland Department of Labor. You also need to withhold state and county income taxes from employee paychecks.

What Safety Rules Apply in Maryland?

Maryland runs its own workplace safety program. It is called Maryland Occupational Safety and Health. It operates under the Maryland Department of Labor.

This program covers both private businesses and government employees. It has the same power as the federal program.

Hazard Communication

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 a spill or skin contact happens.

Injury and Illness Prevention

Create a simple safety plan for your business. Cover how workers report hazards. Explain how you investigate injuries.

Describe how you train workers on safe practices. Keep this document on file.

Common Cleaning Hazards

Cleaning workers face specific risks. Train your team on these common hazards:

• Slips and falls — Wet floors are the top risk. Use wet floor signs and non-slip shoes
• Chemical exposure — Never mix bleach with ammonia. Always ventilate rooms when using strong cleaners
• Repetitive strain — Mopping and scrubbing can cause injuries over time. Teach proper body mechanics
• Lifting injuries — Moving furniture and heavy equipment can hurt your back. Train on safe lifting

How Do You Set Cleaning Prices in Maryland?

Maryland's high incomes mean you can charge solid rates. But factor in the $300 annual report fee, county income taxes, and insurance costs. Your prices must cover these expenses and still leave a profit.

Typical pricing ranges in Maryland:

• Home cleaning (hourly) — $30 to $60 per hour depending on your area
• Home cleaning (flat rate) — $130 to $350 for a standard 3-bedroom home
• Deep cleaning — $200 to $500 depending on home size
• Move-in or move-out cleaning — $250 to $550 or more
• Office cleaning — $0.06 to $0.18 per square foot, or $25 to $65 per hour
• Vacation rental turnover — $75 to $150 or more per turnover

Prices near Washington, D.C. and Annapolis run higher. Prices on the Eastern Shore and in western Maryland are more moderate.

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 Maryland?

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

Washington, D.C. Suburb Residential Cleaning

Montgomery County has over one million people. Prince George's County has over 900,000. Both sit right next to Washington, D.C.

Federal workers, government contractors, and lobbyists live here. They have high incomes and busy schedules. They need regular home cleaning and will pay premium rates.

Baltimore Metro Cleaning

The Baltimore metro area has 2.8 million people. Johns Hopkins Medical Center and the University of Maryland anchor the economy. The harbor area draws tourists and businesses.

This market offers a strong mix of residential and commercial work.

Military Family and Government Office Cleaning

Maryland has several major military bases. Joint Base Andrews sits in Prince George's County. Fort Meade is home to the National Security Agency.

Aberdeen Proving Ground is in the northeast. The Naval Academy is in Annapolis. Military families move often and need cleaning.

Government offices near these bases need regular janitorial services.

Annapolis and Chesapeake Bay Tourism Cleaning

Annapolis is the state capital and a popular sailing town. The Chesapeake Bay region has waterfront dining, bed and breakfasts, and vacation rentals. Tourism cleaning is steady from spring through fall.

You can serve restaurants, inns, and short-term rental properties.

Ocean City and Eastern Shore Vacation Rentals

Ocean City is a major beach resort. Summer brings a huge wave of tourists who rent condos and beach houses. Turnover cleaning between guests pays well.

This work is seasonal but very profitable. Many cleaners earn enough in summer to cover slower winter months.

How Do You Market a Cleaning Business in Maryland?

Getting clients in Maryland follows many of the same steps as other states. But a few strategies work especially well here.

Google Business Profile

This is the single most important free marketing step. Set up your Google Business Profile with your city name, services, and hours. Add photos of your work.

Ask every happy client for a Google review.

Nextdoor and Local Facebook Groups

Maryland residents are very active on Nextdoor. The Washington, D.C. suburbs have dozens of neighborhood groups. Join the groups in your service area.

Share helpful cleaning tips. When someone asks for a cleaner, your name will come up.

Partner with Military Housing Offices

Contact the housing offices at Joint Base Andrews, Fort Meade, and other bases. Military families need move-in and move-out cleaning. Base housing offices often keep referral lists.

Getting on these lists brings steady work.

Connect with Property Managers

Maryland has a huge rental market near Washington, D.C. and Baltimore. Property managers need regular cleaning between tenants. Offer them special rates or a referral bonus.

One good partnership can keep you busy for months.

Vacation Rental Platforms

Reach out to hosts on Airbnb and Vrbo in Ocean City and Annapolis. They need fast, reliable turnover cleaning. Many hosts struggle to find cleaners they trust.

Build that trust and you will get repeat business all season.

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 Maryland?

Maryland is an affordable state to start a cleaning business. Here is a breakdown of what to expect:

• Limited liability company filing — $100 (one-time, through Maryland Business Express)
• Annual report — $300 per year (due April 15)
• Local business license — $15 to $100 per year (varies by city and county)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Varies by payroll (only if you have employees)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Maryland Startup Checklist?

Follow this step-by-step list. Complete each item before moving to the next:

1. Choose your business structure — Form a limited liability company at egov.maryland.gov/BusinessExpress ($100)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Open a business bank account — Keep personal and business money separate
4. Register with the Comptroller — Set up your tax accounts at marylandtaxes.gov
5. Get your local business license — Check with your city or county government
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 Maryland 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, and connect with property managers
11. Get workers' compensation insurance — Required before your first employee starts work
12. Learn the sales tax split — Residential cleaning is exempt. Commercial cleaning is taxable at 6 percent

What Are the Best Tips for Maryland?

Here are practical tips from successful Maryland cleaning business owners:

• Start in the Washington, D.C. suburbs — Montgomery and Prince George's counties have the highest demand. They also have the best-paying clients
• Track residential and commercial work separately — You only charge sales tax on commercial jobs. Keep clean records from day one to avoid tax problems
• Plan routes around traffic — The Washington, D.C. and Baltimore corridors have heavy traffic. Group jobs by area and avoid rush hours
• Build military base connections — Contact housing offices at Andrews, Fort Meade, and Annapolis. Military families are loyal clients who refer friends often
• Offer seasonal Ocean City packages — Summer vacation rental cleaning is very profitable. Line up hosts before the season starts
• Watch your county tax rate — Each Maryland county has a different income tax rate. Factor this into your pricing so it does not eat your profits
• File your annual report on time — The $300 annual report is due April 15. Missing it can lead to penalties and losing your good standing
• Use software to stay organized — Use MaidProfit for scheduling, quoting, and invoices so you can focus on cleaning and growing

Where Do You Find Maryland Government Resources?

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

What Are the Guides for Nearby States?

Thinking about expanding to a nearby state? Each state has different rules and fees. Check our other guides below.

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 Maryland Cleaning Business Today

Maryland gives you a great place to build a cleaning business. High incomes and dense population drive strong demand. Washington, D.C. suburbs and military families make this state a winner.

Start by forming your limited liability company and getting your Employer Identification Number. Get insured, find your local permits, and set prices that cover Maryland's costs. Then focus on getting your first clients through Google, Nextdoor, and local connections.

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