What are the licensing requirements for a pool cleaning and maintenance business?

Basic business license, permit, and registration requirements

In addition to specialty licensing, there are many other licenses, permit, and tax registrations that may be imposed on your business. Here are common licensing-related requirements for any business:

• Basic business operation license. This is a license from the city in which your business will operate, or from the local county (if the business will be operated outside of the city's legal boundaries).
• Federal tax ID (EIN) number. Issued by the IRS, the EIN is also called a tax identification number or employer identification number and is required for almost all types of businesses.
• State tax ID number. Issued by your state’s department of revenue or taxation, the state tax ID number is also called a tax registration number.
• DBA/fictitious business name registration. The doing business as (DBA) or fictitious business name registration happens with the appropriate state or local jurisdiction.
• Zoning and land use permits. Local government zoning laws may prohibit certain business activity in designated areas.
• Building permit. If you plan on remodeling or building a commercial space, you'll need to get a building permit.
• Sales tax license/sellers permit/resellers permit. This license/permit has many names and those names vary by state, but it is required for the selling of almost all products and services.
• Workers’ comp insurance. In most states, workers' compensation coverage is mandatory if you have at least one employee.

What do you need to start a pool cleaning business?

If you’re starting a pool cleaning and maintenance business, here’s a checklist of items that you should follow:

• Get certified. Find out what experience or certifications you may need. Your state government website can provide guidance on what’s required.
• Develop a business plan. A detailed plan can guide your strategy, identify risks, and help you secure funding to expand and grow your pool cleaning business.
• Business structure. Your choice of business structure — whether it’s a limited liability company (LLC), corporation, or partnership — will impact your daily operations, taxes, and the amount of risk you’re willing to take with your personal assets.
• Business name. When selecting a name, try to make the name short, easy to remember, descriptive of the business, and capable of drawing attention. Depending on the business entity you choose, you may have to register and/or receive approval from the local or state government where your business is formed.
• Obtain federal and state tax IDs
• Open a business bank account and credit card. A business bank account and credit card keep your personal and business transactions separate
• Obtain required licenses. permits, and business registrations. Check if you need a pool maintenance license, pool technician license, or pool service license.
• Purchase insurance. Your state may require that you get bonded. You may also need commercial auto insurance for your vehicle. If you have employees, you may be required to have Workers’ Compensation insurance.
• Purchase pool cleaning supplies and transportation
• Develop a services and pricing list
• Create a website and marketing plan

CT can help

Outsourcing business registration and license research, applications, management, and renewals can help take the pressure off internal resources. By working with a full-service management provider who specializes in the efficient processing of business licenses you can free up your staff to focus on starting and growing your pool cleaning and maintenance business while ensuring you keep up with changing compliance requirements.

For more information on CT Corporation services and how we can streamline your business licensing, please contact us.