Let's assume you've done your home work, gotten your business named, licensed (if necessary), and now your ready to go to work. Being a forward thinker, you know you'll need some help (after all, with your marketing skills, you're going to be BUSY).
Expansion will require adding employees, sub-contractors, or leased employees. If you plan on hiring your own employees, you will need an employer identification number (EIN) obtained from the Internal Revenue Service. They will also provide an information packet on how to start a business, along with all the federal requirements.
There are numerous U.S. Department of Labor employment regulations that must be met. Additionally, OSHA has safety requirements for using cleaning chemicals, plus strict laws governing the handling of medical waste (www.osha.gov/SLTC/bloodbornepathogens/index.html).
Most states will require worker’s compensation insurance for all employees. This coverage pays medical bills and wages for full-time employees injured on the job. Another option is to use independent sub-contractors. However, there are specific IRS guidelines to be met. Independent contractors must furnish their own insurance and worker’s comp. Subs would be paid a percentage of the contract (normally starting at 60%).
Many customers will require insurance coverage. General commercial liability pays your customer in the event you damage their equipment or facility. Each state has different premiums, but generally figure $800 to $1500 a year.
Bonding covers you if one of your workers is convicted of stealing money or merchandise. Most insurance companies specializing in commercial insurance can also write a fidelity bond to cover your staff.
PEO (Professional Employer Organizations) or employee leasing companies provide an important service of assuming employer responsibilities. You recruit, hire, train, and supervise your own crews, but the leasing company assumes all employer responsibilities including payment of all payroll taxes. You furnish the payroll details and they compute and issue the checks as if your workers were actually their employees. The state employment agencies and the IRS recognize this service as valid. One source is Work Life (www.worklifefinancial.com/PayrollAdministration.aspx).
Start Up Nation (www.resourcenation.com) has over 100 links to receive free quotes on almost any business service. You can request quotes on bookkeeping services, website design and hosting, E-mail marketing, credit card processing, small business loans, legal services, telemarketing, answering services, mailing services, business insurance, buying a business, payroll services, background checks, worker’s comp. and employee leasing just to name a few.
By consulting with an experienced business mentor (go here), you can avoid costly startup mistakes. Again, the IRS web site has a large list of resources for small businesses. They also have links to each state website providing local rules and business regulations. Just make sure when you are starting a cleaning business that you are in conformance to all laws and local ordinances.
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