Indiana Cleaning Business Start-up Laws

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This article provides three key state business startup requirements for self-employed sole proprietors and general partners who run residential house cleaning businesses. Information from the Secretary of State, the Indiana Department of Revenue and selected city and county government sources were used to research this article.

Be aware that sole proprietor and general partner startup requirements in this state are always changing. Some requirements even vary from county to county.  It is important that you call or visit your local county or city government to find out local requirements for residential house cleaning businesses and home-based businesses. This article is not intended to be exhaustive or a substitute for qualified legal or tax advice.

Business Name Registration

Sole proprietors and general partners who want a business name that does not include the owner(s) full names (for example, Janice Smith’s Cleaning Service or Martha Harris and Tom Graham’s Maid Service) need to find out whether the name they want to use is available in the county where the business will operate. Start with a business name search to avoid legal problems and customer confusion at the County Recorder’s Office.   Find an Indiana county recorder.

Then do an online search for names similar to the one you plan to use. For example, if you want to use the name, Crystal Clean Maid Service, do simple Google searches for “Crystal Clean Maid Service+Indiana” plus Crystal Clean Maid Service+your county” and “Crystal Clean Maid Service+your town or city”. Search beyond the first page of results. Go at least five pages deep into the search results to see if the name you want or similar names are being used in your state, county or city.

Sole-proprietorships and general partnerships that choose to file a Certificate Of Assumed Business Name are required to file with the county recorder. Businesses are required to have the application notarized before filing.

In the state of Indiana, filing a Certificate Of Assumed Business Name does not guarantee a business sole rights to the use of that name. Other businesses in the county and state may also register the same assumed name. Registered businesses are expected to legally defend their trade names.

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Business License Registration

Sole proprietors and general partners do not have to apply for a business license with the state of Indiana.  House cleaning service businesses must apply for a business license at their city clerk’s or county recorders’s offices.

Sole proprietors and general partners may apply for an Employer Identification Number (EIN) from the IRS even if they do not plan to hire employees. Getting an EIN may make it easier to open a bank account and reduce your risk of identity theft. You can apply for an EIN online.  In addition, some business registration forms will require a a NAICS business classification number for the house cleaning industry.

In Indiana, a general partnership is created when two or more owners form an oral or written agreement to start a business together. General partners are not required to file any documents with the Secretary of State. It is advisable for general partners to file a Certificate Of Assumed Business Name in the county where the business is based. A written partnership agreement drawn up by a lawyer is important for both or all partners. Partnership agreements do not have to be filed with the state.

Business Tax Registration

Sole proprietors and general partners of service businesses (no products or tangible items sold) do not need to register with the Indiana Department of Revenue or file a Business Tax Application.

Residential housecleaning services are not taxable in Indiana. Cleaning services do not have to collect and send sales taxes to the Department of Revenue.

Sole proprietors and general partners must pay taxes on the income they earn through individual state income tax returns. Sole proprietors and general partners are responsible for paying estimated self-employment income taxes in Indiana (on Form ES-40) similar to the way self employment taxes are paid to the federal government. Get more information about estimated tax requirements by calling the Indiana Department of Revenue at (800) 457-8283.

Indiana general partnerships that file a Federal partnership information Form 1065, may need to file state income tax Form IT-65. Get more information from a CPA or qualified tax preparer to find out if your partnership must file those returns.

Selected Indiana City Licenses

Anderson Business License: The city of Anderson does not require a business license for cleaning services.

Bloomington Business License: The city of Bloomington does not require a business license for cleaning services.

Carmel Business License: The city of Carmel does not require a business license for cleaning services.

Elkhart Business License: The city of Elkhart does not require a business license for cleaning services.

Evansville Business License: The city of Evansville does not require a business license for cleaning services.

Fishers Business License: The city of Fishers does not require a business license for cleaning services.

Fort Wayne Business License: The city of Fort Wayne does not require a business license for cleaning services.

Gary Business License: https://garyin.us/finance/licenses/

Hammond Business License: http://www.gohammond.com/departments/city-controller/business-licenses/

Indianapolis Business License: The city of Indianapolis does not require a business license for cleaning services.

Lafayette Business License: The city of Lafayette does not require a business license for cleaning services.

South Bend Business License: The city of South Bend does not require a business license for cleaning services.

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