Legal setup, registration, and insurance
Lesson 2 of 5 in Starting Your Own Cleaning Business · 22 minutes
Before you take your first paid client, you need a legal structure, a business registration, an insurance policy, and a way to invoice. This lesson is the practical checklist — what you need, what it costs, and where to get it.
What you'll learn
- Choose between sole proprietor and incorporation
- Register your business in your province
- Get the insurance you need before the first job
- Open a business bank account and basic bookkeeping
From the lesson
The legal setup of a small cleaning business is simpler than newcomers often think. You don't need a lawyer for the basics — most of it is do-it-yourself with provincial websites. Total startup cost is usually $200-700 in registrations and insurance for the first year. This lesson is the checklist.
1. Sole proprietor vs corporation
Two main legal structures for a small Canadian business:
Sole proprietorship — You and the business are the same legal entity. Simplest. Cheapest to set up (~$60-80). All business income is reported on your personal tax return. No legal separation between your personal assets and the business — if the business gets sued, your personal assets are at risk.
Corporation…