Does A House Cleaning Firm Need Tax Id?

A house cleaning business can be quite profitable in the long run and it requires minimum investment. All one needs to get going are some basic cleaning supplies, few licenses in place and few clients to start with.

A house cleaning business can either be a sole proprietorship, partnership or corporation. In either case, it is important to obtain a tax ID. Even tax filing requirements for non profits require an EIN. So any other business of any type will definitely need a tax ID.

What kind of tax ID is needed for a House Cleaning Firm?

You can run your business as a sole proprietor or as an LLC. In both cases you can use your own Social Security Number or SSN for tax purposes. Registering as a Limited Liability Company helps reduce your personal liability with the business.

You can also choose to run the business on a partnership or buy a franchisee from an existing house cleaning firm. In both these cases, you need to attain an Employee Identification Number or EIN from the IRS. A house cleaning business can also be a corporation, which again requires an EIN.

What other tax ID does a house cleaning business need?

Apart from registering with the IRS, your business will also need a tax number from the state in which you operate the business. This is required to pay State taxes. One needs to visit his/her State’s Department of Revenue to register for an account number.

As the owner of a house cleaning firm, you need to pay the following taxes:

  • Corporate taxes
  • Employment taxes
  • Personal Income taxes
  • Sales, property and use taxes.

All of this is possible only when your business has a tax ID. It is also needed to file for tax returns.

Written by Jack
Jack Bauer is a freelance writer and an academician. He is a graduate of Communication and Media Arts and he owns a publishing company in New York City.