GA · Licensing Reference

Janitorial business licensing — Georgia

Last reviewed: June 2, 2026  |  Primary sources: Georgia Secretary of State; GA DOR; GA SBWC; SBA.gov

Georgia's commercial cleaning market is anchored by the Atlanta metro — one of the largest commercial real estate markets in the Southeast — and shaped by a regulatory framework that blends employer-side advantages (right-to-work, no sales tax on cleaning, mandatory E-Verify for 11+ employees) with straightforward workers' compensation and unemployment insurance systems. BSCs scaling operations in Georgia need to master four compliance pillars: E-Verify enrollment, workers' compensation at the three-employee threshold, Georgia Department of Labor UI registration, and correct sales tax treatment for cleaning supplies versus labor.

E-Verify Mandate — All Private Employers with 11 or More Employees

Under O.C.G.A. § 13-10-91, all private employers with 11 or more employees must use E-Verify to confirm work authorization for every new hire. The 11-employee threshold is measured against the employer's total workforce, not just Georgia workers. Cleaning companies crossing that threshold must enroll in E-Verify within 30 days and use it for every subsequent hire. Public employers and contractors on state contracts have been subject to mandatory E-Verify since 2007 regardless of headcount. Non-compliance can result in suspension of state-issued licenses and debarment from state contracts.

Georgia Right-to-Work Law

Georgia is a right-to-work state under O.C.G.A. § 34-6-23. No employee may be required to join or support a union as a condition of employment. BSCs bidding on hospital, university, or corporate campus cleaning contracts are never forced to hire union labor. Georgia's minimum wage defaults to the federal $7.25/hour — the state has not enacted a higher floor — which keeps base labor costs competitive with neighboring Tennessee and South Carolina.

Sales Tax — Janitorial Services Are Exempt in Georgia

Georgia imposes a 4% state sales tax on tangible personal property, but janitorial and cleaning services are not taxable under Georgia law. The Georgia Department of Revenue confirms that most services are exempt under O.C.G.A. §§ 48-8-2(31) and 48-8-30(f)(1); cleaning labor is not an enumerated taxable service. BSCs do not collect sales tax on labor invoices to commercial clients. However, cleaning companies are the end-users of their supplies (chemicals, paper goods) and pay sales or use tax on those tangible purchases. Local add-ons bring the combined rate to approximately 7.4%–8.9% depending on the county.

Workers' Compensation — Three-Employee Threshold

Under O.C.G.A. § 34-9-2, any employer with three or more employees — including part-time and seasonal workers — must carry workers' compensation insurance. Janitorial workers use NCCI code 9014. The Georgia State Board of Workers' Compensation, 270 Peachtree Street NW, Atlanta, GA 30303, (404) 656-3818 / (800) 533-0682, oversees compliance and disputed claims. Coverage is placed with a private carrier — Georgia has no monopolistic state fund. Sole proprietors with fewer than three total workers are exempt but may elect coverage. Subcontractors without their own WC policy may be treated as statutory employees of the hiring BSC, making insurance certificate verification for all subs a critical operational practice.

Georgia Department of Labor — Unemployment Insurance

Georgia UI is administered by the Georgia Department of Labor (GDOL), 148 Andrew Young International Blvd. NE, Atlanta, GA 30303, (404) 232-3001. Employers become liable once they employ one or more workers for 20 weeks or pay $1,500 in wages in any quarter. New employer UI rate is 2.7% on the first $9,500 of each employee's annual wages for the first three years, after which experience rating applies. Rates range from 0.04% to 8.10%. Quarterly UI reports and payments are due the last day of the month after each quarter. Registration is online through the GDOL Employer Portal.

Business Registration and Entity Formation

Georgia business entities register with the Georgia Secretary of State's Corporations Division, 2 MLK Jr. Drive SE, Suite 313, Atlanta, GA 30334, (404) 656-2817. LLC formation costs $100; corporations $100. Standard processing takes five to seven business days; expedited (two business days) costs an additional $100. Georgia has no statewide janitorial business license, but the City of Atlanta requires a General Business License (Occupation Tax Certificate) from Atlanta's Business Tax division. Savannah, Augusta, Columbus, and Macon-Bibb County each have their own local registration processes. Georgia income tax rate is 5.49% flat (2024), trending toward 4.99% by 2029 under Governor Kemp's tax reduction legislation.

Independent Contractor Classification in Georgia

Georgia applies the common-law "right-to-control" test — the state does not use an ABC test. The critical question is whether the alleged employer retained the right to control the manner and means of the work, not just the result. Cleaning crews using company-supplied equipment, following company schedules, cleaning company-designated accounts, and wearing company uniforms are almost certainly employees. Both the GDOL and the State Board of Workers' Compensation audit cleaning companies as a high-priority misclassification target. Reclassification findings result in multi-year back-tax assessments, penalties, and retroactive WC premium liability.

Local Licensing, Bonding, and Chemical Compliance

Atlanta, Savannah, Augusta-Richmond County, Columbus, and Macon-Bibb County each require local occupational licenses with fees based on employee count or gross receipts. Government facility cleaning contracts through Georgia's Department of Administrative Services typically require $1 million per occurrence general liability insurance and a performance bond equal to 10% of annual contract value. Georgia has not enacted PFAS-specific restrictions on cleaning chemicals as of early 2025, but the Environmental Protection Division (EPD) monitors high-VOC cleaning compounds used in enclosed spaces under Georgia Air Quality Rules, Chapter 391-3-1. Annual HazCom training and SDS binder maintenance are required under federal OSHA's jurisdiction (Georgia does not have a state-plan OSHA for private employers).

Primary sources

Page last reviewed: June 2, 2026. Primary sources: Georgia Secretary of State; GA DOR; GA SBWC; SBA.gov. Spot an error? Contact us.