How to Start a Cleaning Business in Oregon: Complete Guide

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

Why Start a Cleaning Business in Oregon?

Oregon has no sales tax. This is a huge advantage. You never collect tax from your clients.

Your prices stay simple and your books stay clean.

Oregon is one of only five states with no sales tax. This saves you time and reduces paperwork. Clients like it because the price you quote is the price they pay.

The state also has strong demand for green cleaning. Oregon residents care deeply about the environment. Many clients will choose you just for using eco-friendly products.

Portland, Bend, and the Oregon Coast all have growing markets.

But Oregon has unique rules you need to know. The Property Services Contractor License catches many new owners off guard. This guide covers every Oregon-specific step you need.

How Do You Choose a Business Structure?

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

Sole Proprietorship

This is the simplest way to start. You do not need to file with the state. Oregon treats you as a sole proprietor when you begin working.

If you want a business name, file an Assumed Business Name. This costs $50 through the Oregon Secretary of State. It works like a Doing Business As filing in other states.

The downside is zero 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 money. If a client sues your company, your personal savings stay safe.

To form one in Oregon, file Articles of Organization. You do this through the Oregon Secretary of State website. The filing fee is $100.

You must also file an annual report each year. The annual report costs $100 and is due on your anniversary date.

Oregon makes this process simple through their online business registry portal.

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, file taxes, and hire workers.

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

Oregon Has No Sales Tax

This is one of the biggest benefits of running a business in Oregon. The state has no sales tax at all. You never collect sales tax from your clients.

You never file sales tax returns. This saves you hours of bookkeeping every month.

Oregon is one of only five states without a sales tax. Your clients love this because the price you quote is the final price. There are no surprise charges added at the end.

Oregon State Income Tax

Oregon does have a state income tax. The state uses graduated rates based on your income. You pay this through the Oregon Department of Revenue.

Register your business with the department to get a Business Identification Number.

If your business earns more than $1 million in gross revenue, watch out. The Corporate Activity Tax may apply. Most new cleaning businesses will not hit this level right away.

Payroll Taxes for Employers

When you hire employees, you register through the Combined Employer's Registration form. This one form covers all your payroll tax accounts. The state assigns you a Business Identification Number for tax purposes.

What Licenses and Permits Do You Need?

Oregon does not have one statewide business license. You need a local business license from your city or county. Fees vary by location.

Contact your city hall to find out what you need.

Property Services Contractor License (Required for Employers)

This is the most important Oregon-specific rule for cleaning businesses. Many new owners miss it. If you hire employees for janitorial work, you must get this license.

It is required by the Bureau of Labor and Industries.

The license costs $350 per year. You must pass an exam with a score of 75 percent or higher. The exam covers labor laws, safety rules, and worker rights.

You must also provide two types of training to all employees. The first is sexual harassment prevention training. The second is cultural competency training.

Both are required by law.

You also need a surety bond. The bond amount depends on your team size. For up to 20 employees, the bond is $10,000.

For 21 or more employees, it jumps to $30,000.

Here is the good news about the bond. It is waived if you meet two conditions. First, you must carry $1 million in general liability insurance.

Second, you must have no violations in the past two years. Most cleaning businesses should aim for this waiver.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Oregon has specific rules about certain types of coverage. Here is what you need.

• General liability insurance — Covers property damage and injuries at a client's location. Costs $400 to $1,200 per year. Get $1 million in coverage to waive the surety bond requirement
• Workers' compensation insurance — Required by Oregon law if you have any employees. Buy it from a private insurance carrier. Oregon does not have a state fund for this
• Surety bond — Required for Property Services Contractor License holders. $10,000 for up to 20 employees or $30,000 for 21 or more. Waived with $1 million general liability and a clean record
• Commercial auto insurance — Needed if you use vehicles for business. Covers accidents while driving to and from client locations

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

What Are Oregon Labor Laws?

Oregon has strong worker protections. If you hire employees, you must follow these rules from day one.

Three-Tier Minimum Wage

Oregon is one of the only states with a three-tier minimum wage. The rate depends on where your employee works. It does not matter where your business is based.

• Portland metro area — $16.30 per hour
• Standard areas (rest of state) — $15.05 per hour
• Non-urban counties — $14.05 per hour

This means your labor costs change by location. You may send a crew from a rural area to Portland. In that case, you pay the Portland rate.

Always check where the work happens.

Paid Leave Oregon

Oregon requires paid leave contributions. The total rate is 1 percent of wages. The employer pays 40 percent of that cost.

The employee pays 60 percent. You withhold the employee portion from their paycheck.

Other Employer Costs

Oregon has a few more payroll costs to know about.

• Workers' Benefit Fund — 1.8 cents per hour worked, split between employer and employee
• Statewide Transit Tax — Withheld from employee wages, paid to the state
• Unemployment Insurance — Employer-paid, rate based on your experience

Register for all payroll taxes through the Combined Employer's Registration form. This one form sets up all your accounts at once.

Worker Classification

Oregon has strict rules about worker classification. Cleaners who follow your schedule and use your supplies are employees. You cannot call them independent contractors to save on taxes.

The state actively investigates businesses that misclassify workers. Fines and back taxes can be severe.

What Safety Rules Apply in Oregon?

Oregon has its own state workplace safety division. It is called Oregon Occupational Safety and Health. It operates under the Department of Consumer and Business Services.

Some Oregon rules are stricter than federal standards.

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 a spill or skin contact happens. This training must occur before they use any product.

Injury Prevention

Every Oregon employer must have a safety program. This is a simple plan that explains how you keep workers safe. It covers how to report hazards and look into injuries.

It also explains how you train workers on safety.

Common cleaning hazards include wet floors and chemical exposure. Train your team on proper lifting and ladder safety too. These simple steps prevent most injuries.

How Do You Set Cleaning Prices in Oregon?

Oregon's lack of sales tax helps keep your pricing simple. The price you quote is the price your client pays. But you still need to cover your costs and earn a profit.

Typical pricing ranges in Oregon:

• Home cleaning (hourly) — $30 to $60 per hour depending on your area
• Home cleaning (flat rate) — $130 to $300 for a standard 3-bedroom home
• Deep cleaning — $200 to $450 depending on home size and condition
• Move-in or move-out cleaning — $250 to $500 or more
• Office cleaning — $0.06 to $0.16 per square foot

Portland prices tend to be at the high end. Rural areas sit at the lower end. The three-tier wage system means your labor costs vary by location too.

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 Oregon?

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

Green and Eco-Friendly Cleaning

Green cleaning is not optional in Oregon. Many clients expect it. Oregon residents care deeply about the environment.

You can charge 10 to 20 percent more for eco-friendly products. Use this as your main selling point.

Vacation Rental Turnover Cleaning

The Oregon Coast has a massive vacation rental market. Bend and Mount Hood also attract many visitors. Hosts need fast turnover cleaning between guests.

This work is steady and pays well. Build relationships with property managers in tourist areas.

Post-Construction Cleaning

The Portland metro area continues to grow. New homes and remodels need thorough cleaning before owners move in. This specialty pays well and has less competition than regular home cleaning.

Mold and Moisture Cleaning

Oregon's rainy climate creates year-round demand for mold cleanup. Moisture issues are common in homes across the state. This niche lets you charge premium rates.

It also gives you steady work during the wet season.

Property Management Partnerships

Portland has a huge rental market. Property managers need regular cleaning between tenants. One good partnership can keep your schedule full.

Offer them reliable service and they will send you steady work.

How Do You Market a Cleaning Business in Oregon?

Getting clients in Oregon follows many of the same steps as elsewhere. 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 and services. Add photos of your work and hours.

Ask every happy client for a Google review.

Nextdoor and Local Groups

Oregon residents are very active on Nextdoor. Local Facebook groups are also popular. Join groups for your service area and share helpful cleaning tips.

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

Partner with Property Managers

Oregon has strong rental markets in Portland, Eugene, and Bend. Property managers need regular cleaning between tenants. Offer them special rates or a referral bonus.

One good partnership can fill your schedule for months.

Target Vacation Rental Hosts

Reach out to hosts on the Oregon Coast and in Bend. They need reliable turnover cleaning on short notice. You can charge premium rates for same-day service.

This market is growing fast.

Highlight Your Green Cleaning

Oregon clients actively seek eco-friendly businesses. Make green cleaning a main part of your marketing. List your products on your website.

Mention it in every ad and profile.

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 Oregon?

Oregon is affordable compared to many states. The no-sales-tax advantage saves you time and money. Here is what to expect.

• Limited liability company filing — $100 (one-time, through the Secretary of State)
• Annual report — $100 per year (due on your anniversary date)
• Assumed Business Name — $50 (if you need one)
• Local business license — Varies by city
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required only if you have employees (buy from private carriers)
• Property Services Contractor License — $350 per year (only if you hire employees for janitorial work)
• Surety bond — $10,000 to $30,000 (can be waived with $1 million general liability insurance)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Oregon 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.oregon.gov ($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. Get your local business license — Apply through your city or county
5. Register with the Oregon Department of Revenue — Get your Business Identification Number
6. Buy general liability insurance — Get $1 million in coverage to waive the surety bond later
7. Buy cleaning supplies — Choose eco-friendly products for the Oregon market
8. Set your prices — Use our Price Calculator and factor in Oregon's three-tier wage system
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, highlight green cleaning
11. Get the Property Services Contractor License — Do this before hiring your first employee for commercial work
12. Get workers' compensation insurance — Required before your first employee starts work

What Are the Best Tips for Oregon?

Here are practical tips from successful Oregon cleaning business owners.

• No sales tax is your secret weapon — You never deal with tax collection or filing. Your prices stay simple and your bookkeeping is easier than in most states
• Get the Property Services Contractor License early — Many owners miss this step. Get it before your first hire to avoid fines and work stoppages
• Green cleaning is expected, not optional — Oregon clients choose eco-friendly businesses. Make it a core part of your brand from day one
• Portland has the highest demand and wages — You can charge the most here, but you also pay the most. Plan your pricing carefully
• The Oregon Coast is a gold mine for vacation rentals — Build relationships with property managers in coastal towns for steady work
• Rain creates year-round cleaning demand — Mold and moisture issues keep Oregon cleaners busy. Market this as a specialty service
• Watch the three-tier wage system — Your labor costs change depending on where the work happens. Track this carefully when you set prices
• Use MaidProfit to manage pricing by area — Track different rates for Portland, standard, and non-urban areas all in one place

What Are the Guides for Nearby States?

If you serve clients near the border, check our guides for the states around Oregon.

Where Do You Find Oregon 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 Oregon Cleaning Business Today

Oregon makes it easier to run a cleaning business than most states. No sales tax saves you time and money every month. The demand for green cleaning gives you a built-in selling point.

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

Remember the Property Services Contractor License before you hire. Get $1 million in general liability to waive the surety bond. And make green cleaning part of your brand from day one.

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