Texas is widely considered the best place in America to start a business. With no state income tax, a booming population, and a culture that values hard work, the barrier to entry is low. Whether you are eyeing the high-rises in Dallas, the suburbs of Houston, or the tech offices in Austin, the opportunity is massive.
However, “Business Friendly” doesn’t mean “Rule Free.” Texas has very specific laws regarding Sales Tax on services (unlike many other states) and strict filing deadlines that can catch new owners off guard.
This guide covers specifically how to navigate the heat, the highways, and the tax code of starting a cleaning business in Texas.
(Note: For a full breakdown of national startup costs, check out our Complete Guide to the Cost of Starting a Cleaning Business in the US).
Step 1: The “Taxable Service” Surprise
In many states, cleaning a house is a non-taxable service. Not in Texas.
- The Rule: Janitorial and custodial services (both residential and commercial) are considered taxable services by the Texas Comptroller.
- The Action: You must apply for a Sales Tax Permit (free to apply) before you clean your first toilet.
- The Rate: You must collect 6.25% (State) + up to 2% (Local) on every invoice. That means if you charge $100 for a house clean in Houston, you must bill the client $108.25 and send that $8.25 to the state.
- Warning: If you fail to collect this, the state will eventually audit you and force you to pay it out of your own pocket, plus penalties.
Step 2: The LLC & The “Franchise Tax”
While Texas has no personal income tax, it does tax businesses differently.
1. Forming the LLC (Certificate of Formation)
- Cost: $300 (One-time filing fee).
- Where: Filed with the Texas Secretary of State (SOSDirect).
2. The Annual Franchise Tax
- The Good News: As of 2025, if your business makes under $2.47 million in revenue, you generally owe $0 in Franchise Tax.
- The “Gotcha”: Even if you owe $0, you MUST file a report (usually the Public Information Report) by May 15th every year. If you forget to file this “I owe nothing” report, you forfeit your right to do business and face a $50 penalty.
Step 3: Licensing (State vs. Local)
Texas is great because there is no statewide “Cleaning License.” However, local rules apply:
- Sole Proprietors: If you aren’t an LLC and use a name like “Austin Sparkle,” you must file a DBA (Assumed Name Certificate) with the County Clerk in every county you operate in (e.g., Travis County, Harris County).
- Chemicals: If you do specialized commercial work (like pressure washing with strong chemicals), check with local water districts about runoff regulations.
Step 4: Surviving the “Texas Triangle” (Logistics)
Texas cities are famous for “Urban Sprawl.”
- The Houston/Dallas Problem: Driving from The Woodlands to Sugar Land (Houston) or Plano to Fort Worth (Dallas) can take 90 minutes one way.
- The Strategy: Do not try to service the “Whole Metroplex.” You will go broke on gas and vehicle wear and tear. Pick a specific side of town (e.g., “North Dallas Only”) and dominate it.
- Toll Roads: Budget for TxTag or EZ TAG. Texas toll roads are expensive and unavoidable. A cleaning van in Dallas can easily rack up $200/month in tolls.
Step 5: Insurance & Labor
- General Liability: Highly recommended. Texans love their property, and if you scratch a marble floor in Highland Park, you need coverage.
- Workers’ Comp: unlike NY or CA, Texas does not strictly mandate Workers’ Comp for all private employers (it’s often “optional” but risky to opt-out). However, most commercial clients will refuse to hire you if you don’t have it.
Why ProCleanerUS is Built for Texas
Everything is bigger in Texas, including the distances between clients. ProCleanerUS solves the sprawl:
- Route Optimization: Our algorithms organize your day to minimize “Windshield Time.” We ensure your crews aren’t crisscrossing the Sam Houston Tollway three times a day.
- Sales Tax Automation: Since every invoice needs that specific 8.25% tax added, our invoicing system can apply this automatically, so you never accidentally undercharge.
- Offline Capability: Whether you are deep in the Hill Country with spotty reception or in a concrete parking garage in Downtown Dallas, our Offline App keeps your team working.
Ready to Mess with Texas Dirt?
The opportunity is as big as the state itself. Start your 7-day free trial of ProCleanerUS and get the tools you need to build a Lone Star empire.