Starting a cleaning business in Alabama is one of the most affordable ways to become your own boss in the South. With low startup costs, strong demand in cities like Birmingham, Huntsville, Mobile, and Montgomery, and a business-friendly environment, Alabama offers real opportunity for residential and commercial cleaners.
However, knowing how to start a cleaning business in Alabama means understanding state taxes, county licensing rules, and compliance requirements that many new owners miss.
This guide walks you step by step through how to start a cleaning business in Alabama, covering registration, taxes, licenses, insurance, and local operating tips — so you can launch correctly and avoid costly mistakes.
For a full nationwide breakdown, see our guide on how to open a cleaning company in the USA.
Step 1: Understand Cleaning Business Taxes in Alabama
Before your first clean, it’s critical to understand how Alabama treats cleaning services.
Is Cleaning Taxable in Alabama?
In most cases:
- Residential cleaning services are NOT subject to Alabama sales tax
- Janitorial and commercial cleaning services MAY be taxable, depending on scope and materials used
Because tax rules vary, you must register with My Alabama Taxes (MAT) and confirm your obligations.
Failing to register correctly is one of the most common mistakes when learning how to start a cleaning business in Alabama.
Step 2: Register Your Cleaning Business in Alabama
Choose Your Business Structure
Most cleaning business owners in Alabama choose:
- LLC (Limited Liability Company) for liability protection
- Sole Proprietorship for very small startups (higher risk)
Register with the Alabama Secretary of State
- LLC filing fee: ~$200 (online)
- Annual Report: Required every year
- Filed through the Alabama Secretary of State
Step 3: Alabama Business Privilege Tax (BPT)
Even if your cleaning business earns very little, Alabama requires most businesses to file the Business Privilege Tax.
- Minimum tax: $100 per year
- Filed annually through My Alabama Taxes (MAT)
- Required even if your business made no profit
Missing this filing can result in penalties or suspension — a key compliance step when learning how to start a cleaning business in Alabama.
Looking for funding or support options? Check out the U.S. Small Business Administration Funding Programs to explore grants, loans, and other assistance for small business owners.
Step 4: Local & County Licensing Requirements
Alabama does not issue a statewide cleaning license — but counties and cities do.
What You May Need:
- County Business License
- City Business License (Birmingham, Mobile, Huntsville, etc.)
- DBA (Assumed Name) if not using your legal business name
Examples:
- Jefferson County (Birmingham)
- Madison County (Huntsville)
- Mobile County
Always check each city or county where you operate.
Step 5: Insurance Requirements in Alabama
Insurance is not optional if you want to win serious clients.
Recommended Coverage:
- General Liability Insurance (required by most commercial clients)
- Workers’ Compensation Insurance
- Mandatory if you have 5 or more employees
- Optional below that — but strongly recommended
If you damage property or an employee gets hurt, insurance protects your business from financial disaster.
Step 6: Hiring Employees in Alabama
If you plan to hire cleaners, you must:
- Register as an employer with the Alabama Department of Labor
- Carry Workers’ Comp if applicable
- Follow Alabama wage and employment laws
Many new owners underestimate this step when figuring out how to start a cleaning business in Alabama — and pay for it later.
Step 7: Operating Across Alabama Cities (Logistics)
Alabama may not be as large as Texas, but distance still matters.
Smart Alabama Operating Strategy:
- Focus on one metro area first
- Avoid long rural drives between jobs
- Group clients by ZIP code
- Reduce fuel and vehicle wear
Cities like Huntsville and Birmingham have spread-out suburbs that can kill profits if poorly routed.
Step 8: Tools That Help Alabama Cleaning Businesses Scale
Running a cleaning business manually quickly becomes overwhelming — especially when managing schedules, invoices, and staff across multiple locations.
Why ProCleanerUS Works for Alabama Cleaners
ProCleanerUS is designed for service businesses like yours:
- Automated scheduling for Alabama-based jobs
- Route optimisation to reduce travel time
- Invoice automation for residential & commercial clients
- Offline mode for rural Alabama service areas
- Cleaner-only mobile app for your team
Whether you’re cleaning homes in Mobile, offices in Birmingham, or move-outs in Huntsville, ProCleanerUS keeps operations simple.
Final Thoughts: Is Alabama a Good Place to Start a Cleaning Business?
Yes — if done correctly.
Learning how to start a cleaning business in Alabama is about more than buying supplies and finding clients. It’s about:
- Proper registration
- Tax compliance
- Local licensing
- Smart operations
Get the foundation right, and Alabama offers long-term opportunity for growth.
Ready to Launch Your Alabama Cleaning Business?
Start your 7-day free trial of ProCleanerUS and run your Alabama cleaning business with confidence — from your first job to your hundredth.