Should I Start an LLC for My Window Washing Business?

Starting a limited liability company (LLC) for your window washing business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a window washing business, lawsuits can arise from things like injuring a client or damaging their property, while window cleaning, or taking an existing business’s logo for your own.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your window washing business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Window Washing Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Window Washing Business

By starting an LLC for your window washing business, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Window washing businesses will benefit from liability protection because of the risk of personal injury, property damage, trademark infringement, and libel.

Example 1: While attempting to wash the windows on the second floor of a customer’s property, one of your employees loses his balance and falls onto the customer below. This results in the customer suffering a broken arm and filing a personal injury lawsuit against your business. As an LLC owner, limited liability ensures that only your business’s assets can be used to pay damages.

Example 2: While parking in the driveway of a customer’s property, an employee of your window washing business accidentally collides with the client’s car. As such, the client decides to sue your business for this property damage in search of compensation. In this instance, the court will only be able to award damages to the plaintiff by using the assets that belong to your business, not your own.

Example 3: A client was very rude towards a couple of your business’s cleaners, which led to them refusing to serve him as a result. The client argued that they had been treated unfairly on the basis of their religion, and thus sued your business for discrimination. In the following lawsuit, your personal assets would remain protected from any requirement to pay damages, regardless of how the lawsuit progresses.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Window Washing Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a window washing business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Window washing businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

For window washing businesses, insurance is extremely beneficial as it protects against financial loss arising from damage to equipment, injury, or business debt lawsuits. By offsetting this risk to an insurance agency, you can maintain your window-washing business’s financial stability and keep it compliant with relevant state laws.

Common Situations Business Insurance May Cover for a Window Washing Business

Example 1: When you’re washing a second-story window, you cause structural damage to the windowsill and side of the home. General liability insurance should help pay to restore the property to its original condition.

Example 2: When you’re unloading your window washing equipment, you accidentally hit the client with one of your telescopic poles. General liability insurance would likely cover the costs of any medical injuries that resulted from the accident.

Example 3: The logo of your window washing company is similar to that of another cleaning company in an adjacent town. The cleaning company sues for lost revenue and copyright infringement. General liability insurance would likely cover the costs of the lawsuit or the costs to formally settle the disagreement out of court.

Other Types of Coverage Window Washing Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all tow truck companies should obtain.

Commercial Property Insurance

If you own an office where you store your window washing equipment and/or book your appointments, you’ll need commercial property insurance in case of an unexpected event. This insurance covers your structure, equipment, and grounds in case of damage due to poor weather, theft, or fire.

Commercial Auto Insurance

Commercial auto insurance covers the vehicle you use to drive from job to job. A personal auto insurance policy may deny claims for damaged commercial equipment (or other property damage) if it is found that you use your vehicle for business purposes.

Commercial Umbrella Liability Insurance

This insurance is available in case your general liability policy cannot cover the full costs of a serious lawsuit. For example, if a client sues you for $200,000 worth of structural damage, and your general liability insurance will only cover $100,000, an umbrella insurance policy will likely cover the extra funds if you are found liable.

Home-Based Insurance

If you operate your business from your home or garage, home-based insurance is available to cover your commercial equipment in case of damage from severe weather, theft, fire, or vandalism. Personal home insurance policies may deny business-related claims.

Workers’ Compensation Insurance

If you have any employees working for you, you’ll need workers’ compensation insurance to cover any injuries they may sustain while on the job. This includes major accidents as well as chronic injuries, such as back pain from repetitive window-washing motions.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance and commercial auto insurance.

Read our Window Washing Business Insurance article for more info.

If you are considering starting a window washing business, you will be faced with a fairly steep upfront cost. In the first year of operation, you should be prepared to need up to $15,000.

This figure will be used to cover a variety of necessary expenses, including a transport vehicle (with signage), insurance, tools, office and storage spaces, and employees’ salaries.

Visit our How to Start a Window Washing Business guide to learn more about the costs of starting and maintaining this business.

The ongoing expenses of running a window washing business include supplies, fuel, equipment maintenance, labor, marketing, and insurance.

Learn more about running a window washing business.

Window washing businesses make money from cleaning customers’ windows. They can charge per hour, per window pane, or per project.

Learn more about starting a window washing business.

Window washing businesses provide window cleaning services to both residential and commercial clients. Window washing is a high profit margin business, and some window washers make over $100,000 in revenue.

Learn more about starting a window washing business.