DC · Licensing Reference

Janitorial business licensing — District of Columbia

Last reviewed: June 2, 2026  |  Primary sources: DC DCRA; DC OTR; DC OIA; SBA.gov

Washington, D.C. operates under a distinct legal framework separate from any U.S. state — its licensing, tax, and labor laws are administered by District agencies rather than federal departments, and the D.C. Code governs in ways that differ materially from both nearby Maryland and Virginia. For commercial cleaning companies, the most consequential facts are: janitorial services are fully taxable at the D.C. sales tax rate; the Basic Business License (BBL) is mandatory; workers' compensation is required from the first employee; and the District's Department of Employment Services (DOES) administers both unemployment insurance and workers' comp oversight in a single agency.

Basic Business License: the mandatory first step

Every commercial cleaning business operating in the District of Columbia must obtain a Basic Business License (BBL) from the Department of Licensing and Consumer Protection (DLCP) before conducting business. There is no separate "janitorial license" — cleaning companies apply under the General Business category. Five prerequisites must be satisfied before submitting a BBL application: (1) a valid FEIN or SSN; (2) registration of the FEIN with the D.C. Office of Tax and Revenue (OTR); (3) a Certificate of Occupancy for commercial premises or a Home Occupation Permit (HOP/eHOP) for home-based operations; (4) a Clean Hands Certification confirming no more than $1,000 owed to the D.C. government; and (5) corporate/LLC registration and good standing with the D.C. Corporations Division, including a registered agent.

BBL fees are streamlined under the B.E.S.T. Act: a 2-year BBL costs $99, a 4-year BBL costs $198, and a 6-month license costs $49. Licenses can be renewed online at the My DC Business Center. The DLCP Licensing Center is located at 1100 4th Street, SW, 2nd Floor, Washington, DC 20024; telephone (202) 671-4500. Walk-in service is available at the kiosk stations without an appointment.

Corporations, limited partnerships, and LLCs (domestic and foreign) must also be registered with the D.C. Corporations Division via CorpOnline. Out-of-state cleaning companies conducting business in D.C. must register as foreign entities before applying for a BBL.

Sales tax on real property maintenance services: 6% on all janitorial work

The D.C. Office of Tax and Revenue (OTR) imposes a 6% sales tax on all real property maintenance services, including janitorial cleaning, under the D.C. Code. Per the OTR's guidance, the following are explicitly taxable: janitorial cleaning; building cleaning (interior and exterior); window cleaning; wall and house washing; floor cleaning and/or waxing; carpet cleaning and rug cleaning; fire damage clean-up; restroom cleaning; chemical cleaning; graffiti removal; and pressure washing. The D.C. Code defines "real property maintenance" to mean any activity that keeps land or building premises clean, orderly, and functional. Note: effective October 1, 2026, the standard sales tax rate increases to 7%, so cleaning companies with multi-year service contracts should be aware of this upcoming change. Register for a sales tax vendor account through the OTR at (202) 727-4TAX or online at otr.cfo.dc.gov.

Workers' compensation: one-employee threshold

D.C. workers' compensation law (D.C. Code §§ 32-1501 et seq.) requires every employer with one or more employees to maintain workers' compensation coverage — one of the strictest thresholds in the country. Coverage must be obtained from a private carrier licensed to write workers' compensation in D.C. (D.C. is not a monopolistic state). The D.C. workers' compensation program is administered by the DC Department of Employment Services (DOES), Office of Workers' Compensation, located at 4058 Minnesota Avenue, NE, Washington, DC 20019; telephone (202) 671-1000. Employees injured on the job must file DCWC Form 7 (Employee's Notice of Accidental Injury or Occupational Disease) within 30 days of the injury. The District's fee schedule reimburses medical providers at 113% of Medicare rates.

The NCCI class code for janitorial services in D.C. is 9014, consistent with the NCCI framework. For window cleaning above ground level, code 9170 applies. Domestic household workers who work 240 or more hours per quarter in a private home must also be covered under D.C. workers' compensation law — an unusual provision that cleaning companies operating residential accounts must track.

D.C. Department of Employment Services: unemployment and employer registration

The DC Department of Employment Services (DOES) also administers unemployment insurance for the District. Employers must register with DOES and obtain an employer account number before paying wages to any D.C.-based employee. New employers are assigned an industry-average unemployment insurance rate for the first two years before experience-rating begins. The taxable wage base in D.C. is $9,000 per employee per year. Quarterly wage and tax reports are filed through the DOES employer portal. Contact the DOES Employer Service Center at (202) 724-7000. Unlike federal OSHA states, D.C. does not have a separate state OSHA plan — federal OSHA (Region III, Philadelphia) has jurisdiction over private-sector employers in the District, though the District has its own occupational safety standards for D.C. government workers.

No state income tax, but D.C. income and franchise taxes apply

While D.C. is not a state, it does levy its own income and franchise taxes that function similarly to state taxes. D.C. imposes a Corporate Franchise Tax at a flat rate of 8.25% on taxable income (for corporations) and an Unincorporated Business Franchise Tax of 8.25% for partnerships, LLCs, and sole proprietorships with gross income exceeding $12,000. These taxes are administered by the OTR. Cleaning company owners who reside in Maryland or Virginia but operate their business in D.C. face multi-jurisdiction tax filing obligations: business income from D.C. operations is reported on D.C. franchise tax returns, while personal income may be subject to Maryland or Virginia state income taxes. Payroll withholding for D.C.-based employees must follow D.C. income tax withholding rates.

Local licensing beyond the BBL

Cleaning companies performing work that involves certain regulated trades within D.C. — such as asbestos abatement, mold remediation, or work on HVAC ductwork — may need additional occupational or specialty permits from DLCP or other D.C. agencies. The D.C. Department of Buildings (DOB) issues construction permits; cleaning work that crosses into construction activity (post-fire restoration, post-flood remediation, structural repairs) requires appropriate permits and licensed contractors. The D.C. Department of Health (DOH) regulates biohazard cleanup operations and may require separate registration for companies handling regulated medical waste. Cleaning businesses should contact DLCP at (202) 671-4500 to confirm the specific BBL category and whether any supplementary occupational permits are required for their service mix.

Earned sick leave and wage-hour obligations

D.C.'s Accrued Sick and Safe Leave Act (D.C. Code § 32-531.01 et seq.) is among the most generous in the country. Employers with 100 or more employees must provide up to 7 days of paid sick leave per year; employers with 25–99 employees must provide up to 5 days; employers with fewer than 25 employees must provide up to 3 days. Sick leave accrues at 1 hour per 37 hours worked (or 1 per 43 for smaller employers). The D.C. Minimum Wage Act (D.C. Code § 32-1003) sets the minimum wage, which has been rising annually: as of July 1, 2024, the minimum wage is $17.50/hour. Tipped employees receive a minimum cash wage of $10.00/hour. Cleaning companies with significant part-time workforces must track accrual carefully to avoid DOES enforcement action.

Independent contractor classification in D.C.

D.C. follows a common-law control test (rather than the ABC test) for independent contractor classification, administered by DOES under D.C. Code § 32-1511. The test looks primarily at the right to control the manner and means of work. However, D.C. has enforced misclassification aggressively in the janitorial sector, and DOES audits of cleaning companies have resulted in significant back-payroll-tax and back-benefits assessments. Cleaning companies using subcontractors who are individuals (not registered business entities) should be prepared to defend their classification decisions against the control test factors. The risk is particularly acute for companies using workers from labor pools or staffing arrangements.

Federal contractor considerations and CMRS requirements

Many commercial cleaning contracts in D.C. involve federal buildings, military facilities, the Smithsonian, or other federally-affiliated sites. Federal janitorial contracts are frequently covered by the Service Contract Act (SCA), 41 U.S.C. §§ 6701–6707, which mandates the payment of prevailing wage rates and fringe benefits determined by the U.S. Department of Labor for service workers on federal contracts exceeding $2,500. BSCs bidding on federal contracts must obtain a DUNS/SAM.gov registration (CAGE code), comply with SCA wage determinations issued for the D.C. area, and maintain certified payroll records. The D.C. area SCA wage determinations specify minimum wages and fringe benefits for janitors and cleaners that typically exceed the D.C. minimum wage by a meaningful margin.

Primary sources

Page last reviewed: June 2, 2026. Primary sources: DC DCRA; DC OTR; DC OIA; SBA.gov. Spot an error? Contact us.