Starting a cleaning business is hard work. If you’ve never owned a prior business, finding clients, creating cleaning standards, marketing, and everything else you have to do can be a real challenge. That is why many people consider how to get a cleaning franchise. We reviewed Entrepreneur’s top 500 franchises to find the best cleaning franchises available and checked out the websites to see what makes each cleaning franchise different. Some provide flexible hours while others provide extra services, and some focus on the revenue you can make. [su_note note_color="#dbeafc"] We’ll provide you the information you need to find the right cleaning franchise based on your estimated total initial investment. Click on any of the links below to jump to that section:

1. General Cleaning Industry Overview
2. How Much Does a Cleaning Franchise Make?
3. How Much Does It Cost to Start a Cleaning Franchise?
4. The UpFlip Cleaning Blueprint
5. Residential Cleaning Franchises
6. Commercial Cleaning Franchises
7. Specialty Cleaning Franchises

[/su_note] Get ready to find out more about how to get a cleaning franchise.

General Cleaning Industry Overview

According to IBIS World, the cleaning services industry is a growing industry. There are three main areas that cleaners operate under:

• Commercial Cleaning Services: Commonly referred to as janitorial cleaning, these services made over $90 billion in 2022 and are expected to grow to $96.1 Billion by 2028. This segment of the industry averages 6.9% profit.
• Residential Cleaning Services: The housekeeping, maids, and gardening industry made over $30 billion last year and is expected to grow to $33 billion by 2028. This industry has a nearly 52% profit margin.
• Specialty Cleaning Services: This is a catchall for other services like carpet cleaning, upholstery cleaning, power washing, and window washing. These add up to around $10 billion in revenue, and profits vary.

That means cleaning is a nearly $130 billion industry. You should also be aware that customers expect green cleaning services to be offered in all types of buildings. Office space, retail stores, medical facilities, and even homeowners are becoming more aware of hospital-grade disinfectants and Hepa vacuums.  Queen Bee Cleaning Services is part of the residential and Airbnb cleaning segment. Owner Christopher Mondragon told us: [su_quote]There’s no better time to get into the cleaning business![/su_quote] Check out our interview with him below. [su_youtube url="https://youtu.be/YcYIYdqegGA"]

How Much Does a Cleaning Franchise Make?

Cleaning franchises can make up to $3.25 million annually based on the information disclosed on the various websites. Merry Maids disclosed the highest revenue statistic. Every franchise for cleaning business operations is different, but some share their numbers on their website. All cleaning companies should disclose how much their franchises make in their Financial Disclosure Document. If they don’t, run! That means they don’t have a proven track record (and are breaking franchising laws). Next, we’ll answer how much a cleaning franchise costs.

How Much Does a Cleaning Franchise Cost?

Cleaning companies franchise their business operations to small business owners for an initial franchise fee ranging from about $1,000 to $100K. The differences are impacted by:

1. Local market potential
2. Reputation of the brand
3. Size of the zone
4. Corporate greed
5. Master vs. Service franchise
6. Assistance that the corporate office provides

In addition, you’ll have initial costs to other suppliers that may bring the total cost to buy franchise cleaning businesses up to $250,000. I know that’s a huge range, but many cleaning franchises are less than $100K for a recognized brand.

Can I Buy a Cleaning Franchise Under $1,000?

For those considering franchising a cleaning business for under $1,000, you can’t start a cleaning franchise for under $1,000 in most locations. There are some companies that will allow as low as a $1,000 down payment to start your own business using their brand recognition. The options include: 

• UpFlip Cleaning Business Blueprint
• Jan-Pro
• Stratus Building Solutions
• Anago Cleaning Systems

We’ll cover all of these and more before you finish this article. Let’s start with the Upflip Cleaning Business Blueprint.

The UpFlip Cleaning Business Blueprint

The UpFlip Cleaning Business BluePrint is a course we created with Christopher Mondragon. Chris Started Queen Bee Cleaning Services in 2015, and today the company makes over a million per year. We worked with him to provide you with his formula for success, which includes: [su_note note_color="#dbeafc"]

1. A 10-Module Course
2. Your Own Website and SEO
3. Marketing and Sales Scripts
4. Google Local Service Ads Templates
5. A Guide to Booking Airbnb Clients
6. Software to Provide Reviews
7. Mentoring While You Start and Run Your Cleaning Business

[/su_note] Effectively we’re giving you everything a cleaning business franchise would, but you’re getting all this without the royalties, so you benefit from significant savings. Become your own boss for only $967. We’ve broken the rest of this blog into groups based on the three major cleaning segments. We’ll start with residential cleaners.

Residential Cleaning Franchises

Want to know how to start a cleaning franchise? Start by considering a residential cleaning company like these:

1. The Maids
2. Two Maids (and a Mop)
3. You’ve Got Maids
4. Molly Maid
5. Merry Maids
6. Maid Right

#1. The Maids: Top Ranked Cleaning Company by Entrepreneur

Exclusive partner of the famous Mr. Clean brand, The Maids offers residential and small business cleaning services. You’ll need to pay: [su_note note_color="#dbeafc"]

• Initial License Fee: $12.5K
• Additional Fees at Signing: $32K to $80K
• Other Startup Costs: $10K to $33K
• 3 Months Operating Expenses: $22K to $39K
• Total Expenses: $76K to $165K
• Royalty Fees: 3.9% to 6.9%
• Advertising: 2%

[/su_note] Learn more about The Maids franchise opportunities on the company website.

#2. Two Maids: Best Employee Pay Model

Two Maids is a residential cleaning company franchise system that differentiates itself from many franchises in a couple of ways:

1. Pay for Performance: Employees get paid based on performance instead of hourly pay, incentivizing the best performers.
2. Guidance with Systems: The company is highly focused on creating the right systems for you to succeed.

According to Entrepreneur, you’ll have the following financial considerations: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $19,950
• Initial Investment: $83,140 to $123,890
• Net Worth Requirement: $200,000
• Cash Requirement: $51,140
• Royalty Fees: 4-7%
• Ad Royalty: 2%

[/su_note] Learn more about Two Maids cleaning franchises on the Two Maids Franchise website.

#3. You've Got Maids: Best for High-Value Residential Clients

If you want to offer home cleaning services, a You’ve Got Maids franchise cleaning company might be right for you. They offer weekly and biweekly cleaning, spring cleaning, move-in/move-out cleaning, and help to find dedicated full-time residential cleaners for households. You’ll need: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $7,000
• Initial Investment: $36K to $108K
• Net Worth Requirement: $200,000
• Cash Requirement: $40K to $100K
• Royalty Fees: 2.99% to 5.99%
• Ad Royalty: $75/week

[/su_note] This is one of the less popular big cleaning companies as they have had a 29% decline in franchises over the last three years.

#4. Molly Maid: Most Cleaning Franchise Options

Molly Maid is another reputable residential cleaning franchise opportunity. The Molly Maid cleaning franchises require:  [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $14,900
• Initial Investment: $127K to $185K
• Net Worth Requirement: $250,000
• Cash Requirement: $65,000
• Royalty Fees: 3% to 6.5%
• Ad Royalty: $104/week

[/su_note] I don’t understand why they expect weekly payments for the ads. That just adds more for franchise owners to keep up with, especially at the beginning when they need to focus on getting cleaning clients.) Molly Maid offers franchises through Neighborly, their parent corporation, which also owns these franchise opportunities:

• Window Genie: Window washing is another type of cleaning franchise you could start. Learn more about how to start a window cleaning business.
• Dryer Vent Wizard: Gas dryer vents are the number one cause of house fires. Dryer Vent Wizard’s specialized services can save people's lives.
• Shelf Genie: Perfect if you want to offer home organization services.
• Grounds Guys: Landscaping is cleaning the outside, but if you want to do landscaping go talk to the guys at Augusta Lawn Care Services and tell them the UpFlip team says hi.

#5. Merry Maids

The Merry Maids cleaning franchise brand is one of the most well-known names in the cleaning industry. They specialize in residential cleaning services. The top 25% of Merry Maids franchises make over $3 million annually. [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $37,500  to $51,500
• Initial Investment: $50K to $100K
• Net Worth Requirement: $250,000
• Cash Requirement: $65,000
• Royalty Fees: 5% to 7%
• Ad Royalty: 1.3%

[/su_note] Data is according to Entrepreneur.

#6. Maid Right

Premium Service Brands is the parent company of Maid Right. They offer a variety of cleaning services franchises for residential and light commercial buildings including:

• The Grout Medic: Grout cleaning and repair franchise
• Renew Crew: Pressure washing franchise
• Kitchen Wise & Closet Wise: Home organization services

For those wondering how to start a franchise cleaning business with Maid Right, you’ll need: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $65,000
• Initial Investment: $103K to $148K
• Net Worth Requirement: $200,000
• Cash Requirement: $50K
• Royalty Fee: 6%
• Ad Royalty: 2%

[/su_note] Check out the Maid Right website to find out how to get a cleaning franchise with them. Now get ready to learn about how to start a commercial cleaning franchise.

Commercial Cleaning Services Franchises

If you want to clean commercial buildings, consider these franchises:

1. Jan-Pro
2. Jani-King
3. Coverall
4. Stratus Building Solutions
5. Vanguard Cleaning Systems
6. Anago Cleaning Systems

#1. Jan-Pro: Best Commercial Cleaning Franchise Under $50K

Jan-Pro has been recognized as the best commercial cleaner franchise in multiple ranking categories by Entrepreneur. You’ll want to consider a Jan-Pro franchise opportunity if you want to work with commercial clients. The Jan-Pro website says you can get into cleaning franchises for as little as $3,150, which includes the down payment, the Franchise Development Starter Kit, and $1,000 for emergency expenses.  Jan-Pro helps you book commercial facilities that need commercial cleaners and lets you set the number of clients or hours you want to work with per month.  According to Entrepreneur, the franchises incur the following costs: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $2K to $4.5K
• Initial Investment: $4.8K to $58K
• Royalty: 10%
• Ad Royalty: 1%

[/su_note]

#2. Jani-King: Largest Global Franchise Cleaning Company 

The largest of the janitorial services companies is Jani-King, with over 7,000 global franchises. They aren’t as disclosive as other janitorial companies about their franchise opportunities. This company didn’t make the Entrepreneur janitorial franchise opportunity list, but Franchise Times shows that they have rising revenue with declining numbers of franchises. This may be due to the age of the franchisees or other conditions, but be careful when investing in them. [su_note note_color="#dbeafc"]

• Initial Franchise Fee: Not Disclosed
• Initial Investment: $20K to $52K
• Net Worth Requirement: Not Disclosed
• Cash Requirement: Not Disclosed
• Royalty Fees: Not Disclosed
• Ad Royalty: Not Disclosed

[/su_note]

#3. Coverall: Most Focused on A Positive Work Environment

Coverall is a commercial cleaning company, but its marketing strategy for a coverall cleaning franchise is unique to the industry. Coveralls cleaning franchise markets itself as a janitorial cleaner that brings family and friends together to have fun and make a great living. This value proposition was so unique I called to verify that this is their mission.  They confirmed that indeed, this is their intent, and most new franchises are referrals from other franchisors. Their service reps were nice too. You should expect the following costs for these cleaning business franchises: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $16K to  $41K
• Initial Investment: $18K to $52K
• Royalty Fee: 5%

[/su_note]

#4. Stratus Building Solutions: Lowest Cost Cleaning Franchising

This franchise opportunity is a commercial cleaning franchise that has two ways of franchising:

1. Janitorial Services Franchises
2. Stratus Master Franchises

The janitorial franchises are some of the lowest-cost franchises in the cleaning industry. They start at just $1,000 for an owner-operator without employees. Meanwhile, the Stratus Master franchises are regional offices with a 9-5 schedule supporting janitorial services by providing admin, invoicing, and business consulting services. [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $3,600 to $69,000
• Initial Investment: $4,600 to $79,000
• Net Worth Requirement: $5K to $40K
• Cash Requirement: $2K to $20K
• Royalty Fees: 5%
• Ad Royalty: 1%

[/su_note] This franchise opportunity makes it where you can focus on the part of the business that interests you most. 

#5. Vanguard Cleaning Systems

Vanguard Cleaning Systems is a commercial cleaning business that works similarly to Stratus Building Solutions, where there are two franchise business models to choose from. The first business model is where you perform daily janitorial services, while the second model supports the cleaning franchises with administrative tasks. [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $5K
• Initial Investment: $6K to $37K
• Net Worth Requirement: $50K and $250K
• Cash Requirement: $7K and $45K
• Royalty Fees: 11.5%
• Ad Royalty: N/A

[/su_note] Learn more about Vanguard Cleaning Systems franchise opportunities on their website. 

#6. Anago Cleaning Systems: Easiest to Get Approved Cleaning Franchise

These cleaning franchises are focused on commercial cleaning services. Anago Cleaning Systems uses the same franchise business model as the other commercial cleaning franchise opportunities on the list, where you have master franchise and “unit franchise” options. The master franchise gets an exclusive territory where they book clients and sell “unit franchises”. [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $5K to $31K for Units; $98K for Master franchises
• Initial Investment: $11K to 61K Units; $219K to $339K Master
• Net Worth Requirement: $31K
• Cash Requirement: $1K
• Royalty Fees: 10%
• Ad Royalty: 2%

[/su_note] The best part of Anago Cleaning Systems franchises is their low net worth and cash requirements.  Learn more about the Anago Cleaning Systems franchising.

Specialty Cleaning Franchises

Haven’t found a cleaning service you like yet? Check out some of the unique cleaning franchises like:

1. Aire-Master of America
2. Oxi Fresh
3. College Hunks Hauling Junk
4. ServiceMaster Clean
5. PuroClean
6. TruBlue Total House Care

#1. Aire-Master of America: Most Unique Cleaning Services Franchise

If you want to offer air cleaning services, this company franchise is a good one to consider. Aire-Master of America provides fragrances, equipment, and servicing to commercial buildings, enhancing their workspace and creating emotions that help employees and customers feel better.  According to Entrepreneur, you should expect: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $30K to $100K
• Initial Investment: $45K to $170K
• Net Worth Requirement: $20K
• Cash Requirement: $50K
• Royalty Fees: 5%
• Ad Royalty: N/A

[/su_note] Find out more about Aire-Master of America franchises.

#2. Oxi Fresh Carpet Cleaning: Best Carpet Cleaning Franchise

If you want to start a carpet cleaning franchise, consider Oxi Fresh.  [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $42,000
• Initial Investment: $48K to $78K
• Net Worth Requirement: $20K
• Cash Requirement: $50K
• Royalty Fees: $395 monthly
• Ad Royalty: 3% [/su_note]

Oxi Fresh has franchises across the U.S. and Canada, plus offers the opportunity to become a master franchise in other countries. 

#3. College Hunks Hauling Junk: Best Name (The Uniforms Don’t Match It, Though)

The winner of the best-named cleaning franchise goes to… College Hunks Hauling Junk! In addition to junk removal, they help homeowners and businesses move. The average junk removal franchise makes $1.63 million, plus they help their local communities by donating meals, recycling, and donating junk to charity. You’ll need: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $45K to $75K
• Initial Investment: Not Disclosed
• Net Worth Requirement: $200K
• Cash Requirement: $75K
• Royalty Fees: 7%
• Ad Royalty: 2%

[/su_note] I just wish the uniforms were superhero costumes!

#4. ServiceMaster Clean

ServiceMaster Clean is a commercial cleaning business and residential floor cleaner that offers cleaning franchises with: [su_note note_color="#dbeafc"]

• Initial Franchise Fee: $32,500
• Initial Investment: $90K
• Net Worth Requirement: $100K
• Cash Requirement: $50K
• Royalty Fees: 7%
• Ad Royalty: 2%

[/su_note] Their top 25% of single-zone franchises average $1.85 million in revenue, while the top 25% overall (including multi-zone franchises) are making over $3.2 million. Find out more about ServiceMaster Clean franchises.

#5. PuroClean: Most Disclosive Cleaning Franchises

These cleaning franchise opportunities focus on building remediation after property damage from water, fire, mold, and other hazardous materials. They are one of the most disclosive cleaning business franchise companies. They list exactly what you need to start a cleaning franchise business directly on their site: PuroClean understands this is a sizable investment to get your business started, and your dedicated franchise developer can connect you with various financing options for up to 50% of the total restoration franchise costs.

#6. TruBlue Total House Care: Most Diverse Skill Set Needed

TruBlue is a combination of a cleaning franchise, a handyman franchise, a landscaping franchise, and accessibility remodeling. This might be the franchise cleaning business for those who want to build an empire because of all the additional services. You’ll need: [su_note note_color="#dbeafc"]

• Total Investment: $65,050 to $91,400
• Franchise Fee: $44,900
• Minimum Liquid Capital: $50,000

[/su_note] Find out more about TruBlue Total House Care cleaning franchises.

You Might Also Want to Check Out

Here are 3 more reputable franchise cleaning companies include:

• Home Cleaning Centers of America 
• Sears Maid Services
• Home Clean Heroes

Contact the Franchise That Works for You

Once you’ve decided which cleaning franchise is the best fit for your location, skill set, and budget, it’s time to contact them and get your franchise started. Honestly, I would recommend taking our cleaning course taught by Chris. I’ve taken it myself and found it to be incredibly thorough and full of practical information.  Using Chris’s strategies will save you hundreds or thousands of dollars in royalties every year while giving you the tools you need to start a $1 million dollar cleaning business. If you choose to go with one of the other providers, I am confident that you’ll be happy with your results because the majority of them have been in business for more than a decade. Which way would you like to start a cleaning business?

• Start my own cleaning business from scratch.
• Start my cleaning business with a course.
• Contact a franchise. Tell us in the comments which one!

Your business name is one of the key elements that creates your brand. You need to know how to check if a business name is taken to prevent customers from being confused about your company's business. A company name can be protected at the local, state, federal, or international level. You'll want to check business name availability at each level to ensure your company name isn't taken. [su_note note_color="#dbeafc"] We’ll discuss the places to check for general business name availability with a focus on:

• Why Should You Check Business Name Availability?
• Check To See if a Name Is Available for Business
  • #1. How to Check if a Name is Trademarked with US Patent & Trademark Office
  • #2. How to See if a Business Name Is Taken on the Secretary of State SOS Website
  • #3. How to Perform a Local Business Entity Search
  • #4. How to Check Domain Availability
  • #5. How to Check if a Name Is Available for Business on Social Media
• Is My Business Name Taken?
• Business Name Search FAQs

[/su_note] Click any of the links above to jump straight to the portion of the blog that is most important to you.

Why Should You Check Business Name Availability?

Before you start a business, you should check whether another business is using your desired business name. It's challenging to form a business entity if the name is already taken. Plus, you might infringe upon another company's intellectual property, which could lead to costly lawsuits. Ultimately, this is the hardest part of how to name a business, but we'll help you navigate choosing business names in the easiest way possible. In addition to this blog, we also have a blog on choosing a business name and our business name checker online tool, which helps you come up with business names and connects you directly to NameCheap to buy the domain. Try the fictitious name generator today. It’s a quick screening search to make your life easier.

Check To See if Name Is Available for Business

A prospective business owner should check if a business name is available in the following locations:

1. US Patent and Trademark Office
2. Secretary of State Office for Your State
3. Local Databases
4. Website URL
5. Social Media Accounts

If the name is taken in any category, you should look for a different name to avoid confusion. We'll show you how to perform a name search for each of the locations named above.

#1. How to Check if Name is Trademarked with United States Patent & Trademark Office (USPTO)

A trademarked business name:

• Identifies the producer of goods
• Protects a brand legally under trademark law
• Guards against fraud and counterfeiting initiatives.

You can perform a trademark search using Trademark Electronic Search System (TESS) on the USPTO website. The steps for searching trademarked business names are:

1. Decide what type of search to perform
2. Input the search terms
3. Review the results

How to Establish if the Business Name Is Someone Else's Trademark Rights

The federal trademark database allows you to perform a trademark name search in five ways:

1. Basic Word Search: The basic searches look for a trade name only. They do not include any logos. Most people will want to check for a company's trademark using this option.
2. Word and Design Mark Search (Structured): Use TESS to search business names and logos using the internal design codes used for registered trademarks.
3. Word and Design Mark Search (Free Form): If you need more complex search criteria, use the free form with boolean logic. You might want to use this if your trademark search returns a million results but the first page looks unrelated.
4. Browse Dictionary: This trademarked business search tool lists all results alphabetically.
5. Search OG Publication Date or Registration Date (Search OG): The Official Gazette is a publication of official trademark applications. You'll use this search to verify someone hasn't recently applied to trademark a name.

Let’s walk through an example. Choose "Basic," which will take you to a page that looks like the picture below.

Search for Your Business Entity Name Availability

Type in the business name you want to use. In the picture above, we used "UpFlip," and the results show that our CEO owns the trademark rights for the business name.

Review the TESS Search Results

There are three possible results you will get:

1. No Results Found: You can likely obtain nationwide trademark protection. Check the Official Gazette to make sure that the name isn't pending.
2. Single Result Found: You cannot file with the trademark office, but you may be able to contact the trademark owner to purchase the right to use the trademark.
3. Multiple Results Found: You may also get results like the third slide in the video below. You'll need to review all the live trademarks on the page to make sure you are not in violation of trademark infringement laws.

For best results, contact a trademark lawyer if you are concerned about trademark infringement. You are not required to apply for a trademark because common law trademark rights protect you without formally registering with the USPTO. Register your trademark if you reach the point you need to protect it, but don’t waste your time trying to prosecute international trademark violations. Check out the benefits of registering your trademark business name.

#2. How to See if a Business Name Is Taken on the Secretary of State SOS Website

Every state has a Secretary of State agency where small business owners can form a Limited Liability Company (LLC) or a corporation. They will have a state filing office that includes a search for business entities. The search tools vary by state but may include:

• Trademarks
• Trade Names
• Service Marks
• Reserved Names
• Business Licenses

You can find your state's Secretary of State search tool by going to usa.gov. Once you get to your SOS website, look for terms like:

• LLC Name Search
• Company Search Name
• Search Business Entity Filings
• Fictitious Business Name Search
• Doing Business As (DBA Name) Search

Every state has slightly different ways of wording its site, so you'll have to check how to search for a business entity's name in your state agency.

#3. How to Perform a Local Business Entity Search

Local governments may also require a business owner to register a company's legal name using DBA (Doing Business As) registrations. You'll want to check with the local County Clerk's office. Find your county office on NACO.org. Once you find the business name search, just check to see if your business name is available locally. Cities may also have requirements.

#4. How to Check Domain Availability

Every new business will need to get a website domain. You can simply type “https://yourbusinessname.com” into any web browser to check if a competing business owns the website. Alternatively, you can look up a business name on sites like:

1. Namecheap
2. GoDaddy
3. Hostinger

Sometimes your domain name will be available, but the price is high. Sites that are more than $100/year for a domain name are being sold by an external company that believes the website will be a high-traffic, high-authority website. I would avoid these unless you have a legitimate reason you believe you can benefit from using these small business names.

#5. How to Check if Name Is Available for Business on Social Media

The easiest way to check if your business name is available on popular social media sites is to perform a general internet search. Google your proposed business name and check if there are Facebook, Instagram, YouTube, or TikTok profiles. If any come up, keep looking for a different name.

Is My Business Name Taken?

By this point, you have checked your business name availability in all the relevant places where registered and unregistered business names might be taken. If you have not found a business called by your name, you are ready to file formation documents and select your business entity type.

Business Name Search FAQs

What is business name registration?

Business name registration is the process of submitting a new business entity's name with the state in which you plan to do business. Find out how to register a business.

Can I register a business name online?

Most states allow you to register a business online, but some are still stuck in the stone ages. Verify with your state agencies to find out more.

Can I change my business name later?

Yes. Just file an “Articles of Amendment” with your state. Don't use the new name until the state approves it.

Can two businesses have the same name?

Trademark business names cannot be used by another business without the written permission of the trademark owner. If you wish to use a business name that is trademarked, reach out to the owner to establish if they would be willing to offer a franchise opportunity.

Where can I check if a business name is taken?

Start by checking if the general business name is available by using Google. Then check business name availability at USPTO.gov and your Secretary of State office, and see if your localities require businesses to register with them.

What do you do if someone copies your business name?

First, reach out to the individual and politely inform them that you own the trademark to the business name. They might change it without a legal conflict because no new business wants to start with legal trouble. If that doesn't work, you can file your trademark with the USPTO, which will give you the authority to take legal action. Legal conflicts are expensive and should only be undertaken once you have attempted to settle out of court.

How do I know if a business name is trademarked?

Check the United States Patent and Trademark Office federal database. Use the TESS search tools for your federal search and check state trademark offices.

Can I trademark my business name if someone else is using it?

No. Only one business can trademark a business name legally. If you perform a trademark business name search and someone else is already doing business with the name you wish to use, approach the business owner to see if they would be interested in selling a franchise. You might get lucky and have a head start in your business.

Should my business and LLC have the same name?

It depends on the company. You may operate an LLC and have separate dba registrations. This is common when people own franchises. The LLC name might be Fast Food Franchises LLC, while they are doing business as McDonalds.

Does your logo have to match your business name?

Your logo is not required to match your business name unless you trademark the design. Your logo is a part of your marketing strategy and is not legally required to match your trademark business name.

Are you starting a new business and wondering what type of business structure to create? We'll cover 11 types of businesses that you can form based on your business need.. When starting a business, there are so many types of businesses to consider that it can be difficult to choose the right structure for you. There are at least 11 different business structures available today and we expect the possibilities will grow in the future. We'll help you understand what you should consider before you choose the type of legal structure of a business. Then we’ll discuss the different kinds of business entities and when each works best. After we've given you all the information you need to choose your company structure, we'll hook you up with one of our business partners to help you begin your business ownership. Let's look at how to choose which type of business structure will work for your business.

How to choose the right type of business structure

There are six questions to consider before you decide what type of business structure to choose:

1. Do you want to keep your personal and business finances separate?
2. What are your tax priorities?
3. Will there be more than one business owner?
4. Do you plan on hiring employees?
5. Are you starting a business to make a profit or help people?
6. Is your company meant to help the members achieve their goals by working together?

Let's look at each of these questions to help you understand how each of these plays into choosing the right business structure.

Do you want to keep your personal and business finances separate?

There are business structures that help separate your business and personal finances and the liability that occurs if an employee gets hurt or a customer files a lawsuit. If you can justify the additional costs, time spent submitting documents to government agencies, and processes to keep your business and personal finances separate, you should. But many of the business owners we interview on our YouTube channel tell people it's better to get started than wait until you can do it perfectly.  In this interview, Notto Jensen tells us that his improvising became his greatest strength because he couldn’t afford overhead. [su_youtube url="https://www.youtube.com/watch?v=Re6Bi62cjf4"] Every type of business entity, except for a sole proprietorship and a business partnership, can separate personal liability and assets from the business liability and assets as long as you use separate bank accounts for the business owned.

What are your tax priorities?

When considering what type of business entity to create, there are some questions you need to ask yourself about the tax treatment:

Is my business one that will qualify for tax-exempt status?

If so, you might want to consider a Non-Profit Organization (NPO) or Low-Profit Limited Liability Company (L3C).

Do I want to pay my business taxes on my personal tax return? 

If yes, you should not consider a C-Corporation (C-Corp) or NPO. All others can be structured to allow pass-through income. All but general partnerships and sole proprietorships can be formed in ways that may allow separate business tax returns.

Are there any tax deductions or tax benefits that a business will qualify for that my personal income will not?

All but a sole proprietor or general partnership have some tax benefits that might outweigh the double taxation that can occur in other kinds of businesses.

What tax code do the different entities follow? 

C-Corps follow subsection C, while S-Corporations (S-Corps) follow subsection S, and pass-through entities, like an LLC, will either be treated as a partnership or sole proprietorship, unless you file a Form 8832 to follow C-Corp laws. Co-ops are in Subsection T, which borrows from C, S, and K. Non-Profits are mostly in 501(c)(3). I suggest you view the IRS Business Structures page for a more detailed understanding of the tax requirements for each type of business structure or talk to a tax consultant.

Will there be more than one business owner?

All types of businesses will allow for a single owner except for the different types of business partnerships, which have to be two or more people. An S-Corp has a limit of 100 owners, as do Benefit Corps (B Corps) and Co-Ops that are structured under S-Corp tax laws.

Do you plan on hiring employees?

[caption id="attachment_25367" align="aligncenter" width="730"] Hiring employees impacts what types of businesses make the most sense for a business structure.[/caption] If you plan on hiring employees, you'll either want to do an LLC, LLP, corporation, NPO, or Co-Op. Do not hire people using a sole proprietorship or general partnerships as you have no legal protection if something goes wrong. In Co-Ops, the employees may be the owners. Profit is divided by rules that require distribution based on how much each person uses the co-op as opposed to how much they invested. If you conduct business in this manner to make the investment returns fair, each employee's investment needs to be equal to the work they put into the business.

Are you starting a business to make a profit or help people?

If you are trying to make a profit, you cannot be an NPO, but you can be an L3C that may qualify for tax exemption if you are investing in it through a foundation that is tax-exempt.  You also won't want to be a Co-Op unless each member pays 1/X of the expenses, where X = the number of members. This is because of how a co-op divides profits compared to other types of businesses.

Is your company meant to help the members achieve their goals by working together?

If your company is meant to help people and make a profit, then your business operations may want to be formed under laws for Co-Ops or Benefit Corporations. These types of businesses are meant to be more profitable for the members or employees. You'll see this kind of business structure in credit unions and companies like Winco. Check out their video about their Employee Stock Ownership Plan below. [su_youtube url="https://www.youtube.com/watch?v=1eWq0dKXxDY"] Now that you know about the business factors that impact the types of businesses and what business structures you can use, let’s look at the actual business types.

What type of business structure is normally best?

Sticking with a Limited Liability Company (LLC) is typically best unless:

1. You have high enough profit margins that you can benefit from the corporate tax structure.
2. Want to include your fringe benefits as tax-deductible. In that case, use a C-Corp.
3. Qualify as a Non-Profit.
4. Are trying to help benefit others without regard for getting most of the profit? In this scenario, Co-ops and B-Corps might make sense.

Check out our business startup guide for more great information about starting a business.

Types of businesses: Most common business structures

There are 11 business types you may want to consider when starting a new business. We'll look at the business legal structure for each of the following different business types:

1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership (LLP)
4. Limited Liability Company 
5. Series Limited Liability Company 
6. C-Corporation 
7. S-Corporation 
8. Non-Profit Organization 
9. Benefit Corporation 
10. Low-Profit Limited Liability Company 
11. Cooperative (Co-op)

Let's start by looking at the easiest types of companies to create, sole proprietorships.

Business Type 1. What is a sole proprietorship?

Sole proprietorships are the quickest, least expensive way of entering the world of business ownership.  This type of business structure operates where the owner and the person are one legal entity, sometimes called a business entity. 

What is a business entity?

A business entity is a company that is recognized as a separate legal entity from the person who owns it. This is beneficial because it separates:

• Business assets and personal assets
• Personal debt and business debt
• Business liability and personal liability.

Pros and cons of a sole proprietorship

The main benefit of being a sole proprietor is it is quick and easy to become a business this way. You can file income with your personal tax return. Some states even allow you to operate a sole proprietorship for free.  Unfortunately, there are some really nasty downsides to sole proprietorships including:

• Unlimited personal liability for business decisions.
• Business assets could be taken in a personal lawsuit.

Sole Proprietors and the IRS

The Internal Revenue Code considers these small businesses under self-employment taxes which means you can:

• Claim expenses that employees cannot, but not as many as a corporation.
• Own assets for the business. For instance, if you own a building and don't want to run the business anymore, you can close the business and rent the space to a new tenant.
• Have funds go directly into your personal bank accounts (this makes the next one much more difficult though).
• FIle the income with your personal tax returns. You will have to establish what is a business expense and personal expense. Check IRS Publication 334 for guidance on what you can claim and what you can't.
• Self-employment tax means that small business owners have to pay 15.3% of the first $137,700 in 2020, $142,800 in 2021, and $147,000 of income for 2022. This cap is adjusted every year based on inflation. The IRS is the definitive source for self-employment taxes. Make sure to read about them.

Keep reading for information on other types of businesses including partnerships.

Types of Businesses 2. What are Partnerships?

There are two types of partnerships , General Partnerships or Limited Partnerships. A General Partnership is when at least two people are participating in the business, while a Limited Partnership has at least one silent partner.

Benefits of Partnerships

Both General Partnerships and Limited Partnerships have the same benefits:

• Easy to create
• Pass-through taxation, meaning they have the same benefits as a sole proprietorship regarding taxes
• Partners fully control the business
• You can get investors

Disadvantages of Partnerships

Both Limited Partnerships and General Partnerships share the problems of:

• Unlimited liability for the business's debts
• Personally liable for the other peoples' actions

Like Sole Proprietors, these types of businesses are not recommended because of the lack of liability protection against a business's debts. The next type of partnership is far better when considering different types of businesses.

Business Type 3. What is a Limited Liability Partnership? 

Limited Liability Partnerships (LLPs) are similar to other Partnerships but come with protection against liability for others' actions.

What are the benefits of an LLP?

The benefits include:

• Only liable for others' actions to the amount that you invested in the company (but still personally liable for your own actions)
• Independent legal entity
• Pass-through income
• 20% qualified basic income deduction. See IRS QBI page for more details.
• Easy to add partners

What are the disadvantages of an LLP

The issues with these business entities are:

1. They are not offered for all industries in all states.
2. Some states may require a franchise fee on top of the standard limited partnership and limited liability formation fees.

In most states, you will need a formal operating agreement and to register with the Secretary of State to create an LLP. You can find information for starting a business in your state at USA.gov. Keep reading for information on Limited Liability Companies.

Business Types 5. What is a Limited Liability Company?

A Limited Liability Company (LLC) is a company that provides separation of business and personal assets and liability while allowing pass-through income. People will almost always tell you to start an LLC if you ask "What type of business should I register as?" Most of the time they are right.

What are the benefits of an LLC?

The reasons everyone loves LLCs are:

1. They separate personal and business liability.
2. They can have as many members as you want.
3. Anyone or any business entity can own an LLC.
4. The business determines whether to file taxes as either a pass-through entity or a corporation.

What are disadvantages of an LLC?

The main drawbacks are:

• Raising capital can't be done through selling shares.
• You can't jump back and forth between corporate taxes and pass-through taxes.
• LLCs are more complex to start than a sole proprietorship.
• You’ll have more costs associated with setting up and maintaining an LLC.

How to get an LLC

You'll need an operating agreement and articles of organization, which are fairly easy. You can create a separate business entity through our partner BetterLegal and save $30 when you create an LLC. Keep reading for more more types of businesses that avoid unlimited liability.

What is a Series Limited Liability Company (Series LLC) Business Type?

A Series LLC is nearly identical to a normal LLC but with one distinguishing difference: You can have a parent LLC with multiple distinct LLCs underneath it. This is basically the same concept a conglomerate (Berkshire-Hathaway, for those unfamiliar) uses, but much less costly.

Who should use a Series LLC?

A series LLC is commonly used by:

1. Serial entrepreneurs
2. People who own multiple franchises
3. Landlords

What are the benefits of a Series LLC?

The benefits of a Series LLC over a normal LLC include:

• Lower cost than starting multiple LLCs
• Has the same benefits as an LLC, but can share costs
• Less complexity than conglomerates or thousands of non-series LLCs

What are the disadvantages of a Series LLC?

The drawbacks are:

• More costly originally, but saves money the larger the series
• A larger series means more complexity. Only offered in the following locations: Alabama, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Puerto Rico, Tennessee, Texas, Utah, Virginia, Wyoming.
• Tax clarity due to series LLC being based on local laws

I've provided the links for some of the states. You can find your state by searching "register a Series LLC in (insert state)."

What types of businesses are C-Corporations? 

A C-Corporation is a business formed and taxed under Subsection C of the U.S. tax code. Before the 1990s, C-Corporations accounted for the vast majority of the revenue in the U.S. Now they make up less than 50%.

What are the advantages of a C-Corporation?

A C-Corp has the following benefits:

1. Able to sell stock
2. Able to pay dividends to the owner reducing the taxable consequences
3. Limited liability
4. Easier to get investors
5. Can offer yourself better benefits fully tax-deductible.
6. Unlimited owners

That doesn't mean it doesn't have downsides too.

What are the disadvantages of a C-Corp?

A C-Corp includes many business challenges that other types of businesses do not, including:

• The corporate tax, which can be avoided through good estimating if you pay yourself enough
• Complexity due to filing and reporting requirements. Requirements can be found on the IRS website.
• Double taxation, need to pay taxes on corporate earnings and personal income

C-Corps are the most common type of corporation, but let's look at the S-Corp next.

What types of businesses are S-Corporations? 

An S-Corporation is a cross between an LLC and a corporation. In fact either can file to pay taxes as an S-Corp. The main differences between an S-Corp and C-Corp are:

• No more than 100 stockholders in S-Corps.
• Only U.S. Citizens, resident aliens, some NPOs, and some trusts or estates can own S-Corps. Check with a lawyer if you are thinking about starting an S-Corp and investing in it with an NPO, trust, or estate.
• Earnings are pass-through income, but S-Corp business owners still have to pay themselves as employees. Meanwhile C-Corps are taxed on corporate and personal income.
• S-Corps can only have one class of stock, while C-Corps may have multiple stock classes.
• An S-Corp files under subsection S of the U.S. tax code, while a C-Corp files under class C.

You can run an LLC or a Corporation as an S-Corp. Learn more about the differences in the two structures in our blog LLC vs. S-Corp or go to the IRS S-Corporations page to learn more learn more about forming an S-Corporation. The other types of businesses we are about to discuss are less common business structure, but might make sense for unique business needs.. Keep reading to learn about Non-Profit Corporations.

What is a Non-Profit Organization (NPO)?

Non-profit organizations are types of businesses that work for the better good of the community. They are typically in the medical field, free or low-cost legal services, churches, or other social services.

What are the benefits of running an NPO?

The benefits of these types of businesses include:

1. No corporate tax
2. Legally allowed to receive donations to raise money.
3. Profits on the sale of a property can go to help people.

What are the disadvantages of running an NPO?

NPOs are not always the best business structure even though they are tax exempt. These types of businesses are more complicated because:

• The states Approve whether you can raise money, but the federal government approves an NPO's tax-exempt status.
• There are lots of legal documents required to keep your tax exemption.
• If the business closes, you have to donate the assets.

Unless you are specifically looking at types of businesses that are serving the greater good and don't want to make a profit, an NPO probably isn't the best option for a small business.

What is a Benefit Corporation?

When wondering, “What type of business should I start,” consider a benefit corporation if how you impact your community is important to you. This type of corporation is an addendum to an S-Corp or C-Corp. Follow the four steps below:

1. Apply for an S-Corp or C-Corp.
2. Mark the box that says, “I want to be a Benefit Corp.” 
3. Specify how the corporation intends to benefit the community.
4. Create and publish a report of how you improved the community every year.

Remember to follow your state's requirements to create a B-Corporation, and to learn more go to BenefitCorp.net. 

What is a Low-Profit Limited Liability Company (L3C)

L3Cs are used in nine states when an organization is focused on the greater good, but they may also earn a profit. These companies normally do not qualify for Non-Profit status, but they might be able to if all owners are Non-Profits and the business is within their core functions. If it doesn't, then it will have taxable earnings. These are primarily used by the Bill Gates Foundation and newspapers for projects that could turn a profit but don't and rely on contributions to keep them going.  Use this option with caution because of the uncertainty in the tax treatment. I'd suggest going with a more established form of business, but you can learn more about L3C usage on UpCounsel.

What is a Cooperative (Co-Op)?

A Co-Op is a group of people or businesses working together to achieve a goal. Co-Ops fall under Subchapters C, K, S, and/or T of the tax code depending on what legal structures they follow. The key difference between Co-Ops and other businesses is distributions are by usage, not investment. The primary industries that use Co-Ops are agricultural, healthcare-related, community-funded energy projects, and employee-owned companies. You'll definitely need a lawyer to establish the best strategy for Co-Ops, but check out Co-opLaw.org to learn more about how co-ops work. I'd personally love to see more Co-Ops, but there needs to be a balance where employees get 33% of the profits, investors get 33% of the profits, and founders get 34% of the profits. I think this would truly be a great way of running a company for everyone involved.

Did you narrow down the types of businesses you want to start?

If you are ready to set up your business, go to your Secretary of State (SOS) website. Look for your SOS at search.usa.gov, or reach out to our partner BetterLegal to help you with all your business filing needs. BetterLegal handles everything from business formation to state and federal reporting within one to three weeks. Regardless of whether you start a sole proprietorship, LLC, corporation, or another type of company, UpFlip has you covered. If you're ready for the next step in the process, read our article on how to register a business. What business structure are you leaning toward?