Indiana is an excellent place to start a cleaning business in 2026. With a central location in the Midwest, affordable living, and a strong small business culture, the Hoosier State offers entrepreneurs a welcoming environment. Cities like Indianapolis, Fort Wayne, and Evansville are booming with opportunities for residential and commercial cleaning services.
However, “business friendly” doesn’t mean “rule free.” Indiana has specific rules regarding Sales Tax on cleaning services, LLC formation, and local permits that new owners must follow to avoid fines. This guide will walk you through how to navigate taxes, licensing, logistics, and insurance to launch a successful cleaning company in Indiana.
(Note: For a full breakdown of national startup costs, see our The Cost to Start a Cleaning Business in the USA: The 2026 Complete Guide.)
Step 1: Understanding Indiana’s Sales Tax on Cleaning Services
While residential cleaning services are non-taxable in many states, Indiana considers certain commercial cleaning services taxable.
The Rule: Janitorial services for commercial properties are subject to Indiana Sales Tax. Residential cleaning is generally exempt.
Action: Apply for a Sales Tax Permit with the Indiana Department of Revenue. It’s free to apply and required before billing clients for taxable services.
Rate: Indiana has a state sales tax of 7% (as of 2026). If you charge $100 for a commercial cleaning in Indianapolis, you must bill $107 and remit $7 to the state.
Warning: Failure to collect and remit tax can trigger audits, penalties, and back payments.
Step 2: Form Your LLC & Handle Franchise Taxes
LLC Formation:
- Cost: $100–$120 filing fee.
- Where: File through the Indiana Secretary of State.
- Tip: Forming an LLC protects your personal assets from business liabilities, which is especially important in the cleaning industry.
Franchise Tax: Indiana does not impose a separate franchise tax like Texas, but you must file your annual business report with the Secretary of State. Failure to file can result in penalties or loss of good standing.
Step 3: Local Permits & Licensing
Indiana does not require a statewide cleaning license, but local rules vary:
- DBA Registration: If you operate under a business name other than your legal name, file a Doing Business As (DBA) with your county clerk.
- Environmental Permits: If using commercial-grade chemicals or pressure washers, check with local water districts for regulations. For example, Indianapolis and Fort Wayne have specific runoff rules.
- City Permits: Some cities may require a general business license—verify with your local government website, e.g., Indianapolis Business Licensing.
Step 4: Logistics & Service Area
Indiana’s cities are more compact than Texas, but planning routes efficiently is still crucial.
- Indianapolis Metro: Avoid spreading your crew across the entire metro; focus on one or two neighbourhoods to reduce travel costs.
- Vehicle Costs: Budget for fuel, insurance, and vehicle maintenance. A reliable van or SUV is essential.
- Scheduling Software: Tools like ProCleanerUS help optimise routes, saving time and fuel costs while keeping crews productive.
Step 5: Insurance & Labor
General Liability Insurance: Protects against property damage or accidents. Essential when cleaning high-end homes or commercial properties.
Workers’ Compensation: Indiana requires workers’ compensation if you have employees. Even if optional, most commercial clients won’t hire you without coverage.
Why ProCleanerUS Works for Indiana Cleaning Companies
Everything about cleaning is easier with the right technology:
- Route Optimization: Plan jobs efficiently across Indianapolis, Fort Wayne, or Evansville.
- Sales Tax Automation: Automatically adds the correct tax to each commercial invoice, preventing undercharging.
- Offline Capability: Work in basements, parking garages, or areas with limited internet without losing functionality.
Start your 7-day free trial of ProCleanerUS and discover how to build a lean, profitable cleaning business in Indiana.