A DC contract sets your wage floor before you sign it
Part of Operator Blueprint → Licensing by State
Answer
DC requires a Basic Business License ($200 to $570 base plus $200 General Business endorsement) and DCRA entity registration ($99 LLC / $220 Corp), with no specialized janitorial license. Commercial cleaning services are taxable at 6%.
- Basic Business License costs $200 to $570 base plus $200 General Business endorsement for a 2 year term.
- Commercial cleaning is taxable at 6%; residential cleaning for individual homeowners may qualify for exemption.
- Living Wage Act requires $17.50/hr minimum for DC funded cleaning contractors.
- Also complete District of Columbia statewide licensing (entity, workers’ comp, sales tax).
$17.50 DC Living Wage Act minimum for city funded cleaning contractors (2024)
Washington Cleaning Business License Requirements
Starting a cleaning business in Washington, District of Columbia requires coordinating registrations across state and local agencies. There is no specialized "janitorial contractor license" in District of Columbia — cleaning businesses operate under general business licensing and state entity registration requirements.
$17.50
DC Living Wage Act minimum for city-funded cleaning contractors (2024)
Source: DC DCRA, 2025
| Requirement | Agency | Fee | Resource |
|---|---|---|---|
| District of Columbia entity registration (LLC or Corp) | DC DCRA | $99 (LLC) / $220 (Corp); Biennial Report: $300 | dcra.dc.gov |
| Annual state fee / franchise tax | State revenue or SOS | BBL renewal: $200/2yr; Biennial report: $300 | See state filing portal |
| Local business license / BTR | City of Washington | $200–$570 base depending on category; General Business endorsement: $200 | business.dc.gov |
| State sales tax permit (if applicable) | State DOR/DFR | Free | State tax portal |
| EIN (Federal) | IRS | Free | irs.gov |
Step-by-Step Registration Process
Step 1 — Form Your Entity. Register your LLC or corporation with DC DCRA at https://dcra.dc.gov/service/register-a-business. Fee: $99 (LLC) / $220 (Corp); Biennial Report: $300. Most states process online filings within 3–5 business days.
Step 2 — Obtain Your EIN. Apply for a federal Employer Identification Number at irs.gov. Free and immediate online. Required before opening a business bank account or registering with state tax agencies.
Step 3 — Local Business License. DC Basic Business License (BBL) — DCRA Department of Licensing and Consumer Protection. Fee: $200–$570 base depending on category; General Business endorsement: $200. Obtain from: https://business.dc.gov/basic-business-license.
Step 4 — Sales Tax Registration. Cleaning services are TAXABLE in District of Columbia. DC taxes commercial cleaning services at 6%. The DC Office of Tax and Revenue (OTR) classifies 'building maintenance services' as taxable. Residential cleaning for individual homeowners may qualify for an exemption; consult OTR guidance. Register with the state revenue department before collecting any taxes from clients.
Step 5 — Workers' Compensation. Required for 1+ employee (DC Dept of Employment Services, does.dc.gov). Contact your state workers' comp agency before your first hire.
Special Permits
DC OCA permit if using regulated chemicals above threshold; DC DPW coordination for commercial waste disposal; GSA Facility Access clearance required for federal building cleaning contracts.
Insurance Minimums for Washington
| Coverage | Minimum | Notes |
|---|---|---|
| General Liability (per occurrence) | $1,000,000 | Many commercial property managers require $2M |
| GL Aggregate | $2,000,000 | Healthcare and government may require $5M umbrella |
| Workers' Compensation | Required for 1+ employee (DC Dept of Employment Services, does.dc.gov) | Required for all cleaning employees in most states |
| Commercial Auto | $100,000/$300,000 | If employees drive to job sites |
Sales Tax: Washington (6.0%)
DC taxes commercial cleaning services at 6%. The DC Office of Tax and Revenue (OTR) classifies 'building maintenance services' as taxable. Residential cleaning for individual homeowners may qualify for an exemption; consult OTR guidance.
Union Considerations
SEIU 32BJ represents commercial office BSC workers throughout DC. Prevailing wage applies to all DC government and federal facility cleaning contracts under the Service Contract Act (SCA). Living Wage Act (DCMR §2-220) requires $17.50/hr for DC-funded contractors.
Free Tool
Get your full compliance checklist for Washington — licenses, insurance, tax, and more.
Washington Local Market Context
Washington DC's commercial cleaning market is among the most regulated and lucrative in the country. The federal government, K Street lobbying firms, embassy row, and major healthcare campuses (MedStar Georgetown, George Washington University Hospital) all generate recurring cleaning demand. Federal contracts under NAICS 561720 flow through GSA, NIH, USDA, and dozens of other agencies headquartered in DC. SEIU 32BJ coverage is near-universal for commercial office cleaning, making union wage compliance essential for large contract competitiveness.
Frequently Asked Questions
What is the DC Basic Business License and does a cleaning company need one?
Yes. Every cleaning business operating in the District needs a Basic Business License with the General Business endorsement, which costs $200 for a two-year term through business.dc.gov. Entity registration with the District is a separate filing that must be completed first. The BBL is genuinely enforced in DC, and operating without one exposes you to fines and disqualifies you from any government work.
Is commercial cleaning taxable in the District of Columbia?
Yes, at 6 percent, which puts DC in the minority of jurisdictions that tax building maintenance services. Contractors coming from Maryland or Virginia, where cleaning is exempt, routinely get this wrong on their first DC invoices. Register with the Office of Tax and Revenue at MyTax.DC.gov and collect from the outset, because unremitted tax on a year of contracts becomes a serious liability quickly.
How do I win federal building cleaning contracts in Washington?
Register on SAM.gov under NAICS 561720 and understand that GSA is the primary buyer, contracting either through the Multiple Award Schedule or open-market solicitations. Background checks and security clearances for workers are routine rather than exceptional in this market. Under the Service Contract Act, wage determinations in the District track SEIU 32BJ rates, which are well above the commercial market, so a bid priced off private-sector labor assumptions will be badly wrong.
How does operating across DC, Maryland, and Virginia complicate compliance?
Substantially, because all three treat cleaning differently. DC taxes the service at 6 percent while Maryland and Virginia exempt it. Virginia adds a per-locality BPOL gross receipts license for every jurisdiction you work in. Each also has its own entity registration and workers' compensation system. A contractor covering the whole region needs foreign qualification in the states where it is not domiciled, and payroll configured to attribute wages by work location rather than by office address.
How we built this guide
Opora editorial sources from BLS OEWS wage tables, ISSA-447 production rates, NCCI workers' compensation classifications, EPA List N, OSHA 29 CFR standards, and primary state regulatory filings. We don't recycle blog posts — we audit primary documents.
Methodology · Editorial standards · Corrections policy · About Opora