Choosing the Business Entity While you could operate your cleaning business as a sole proprietorship or partnership, you should consider using a legal form that protects you from personal liability, such as a corporation or a limited liability company.
What industry would a cleaning business be under?
The cleaning industry includes businesses that provide cleaning and restoration services to both the residential and commercial markets. The most common services include cleaning home and office interior spaces, windows, carpets and upholstery.
What is a residential cleaning business?
A residential cleaning service specializes in things around your home such as cleaning floors, bedrooms, and bathrooms. A commercial cleaning service cleans things such as offices, buildings, or retail stores. There is a big difference in the way that you clean a retail store versus someone’s home.
What is the difference between commercial cleaning and residential cleaning?
A residential cleaning service specializes in things around your home such as cleaning floors, bedrooms, and bathrooms. A commercial cleaning service cleans things such as offices, buildings, or retail stores. A residential cleaning service is going to be much more detail-oriented and thorough.
Do you need liability insurance for a sole proprietorship?
As most small business owners will tell you, some form of liability coverage is required if you want to protect yourself and your employees from potential legal action. However, for business owners who run a sole proprietorship, purchasing insurance is more than a precaution. It’s an absolute necessity.
Who is liable in a sole proprietorship case?
There is practically no legal distinction between the owner and the business, meaning that creditors of the business owner or of the business itself, as well as any other entity or individual who has any claim against the owner, can reach both the business and the owner’s personal assets. Ways to Protect from Liability in Sole Proprietorship
How to protect yourself as a sole proprietor?
Here are ways to protect yourself from such liabilities. There is business liability insurance that can perfectly protect a sole proprietor from liabilities such as lawsuits that would derail the business and deplete personal assets.
How much does general liability insurance cost for a small business?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small limited liability companies ranges from $27 to $49 per month based on location, size, payroll, sales and experience.
