How to Start a Pressure Washing Business in Texas

To start a pressure washing business in Texas, you form a limited liability company with the Secretary of State for a $300 filing fee, get a federal Employer Identification Number, register with the Texas Comptroller for a sales tax permit (pressure washing is a taxable service in Texas), arrange compliant wastewater handling under state and federal clean water rules, and put general liability and commercial auto insurance in place before your first job. Most of the paperwork can be done online in a single day. The parts that trip people up are sales tax, wastewater runoff, and the annual franchise tax report, and those are the ones that cost real money when ignored.

Form Your LLC With the Secretary of State

A sole proprietorship is legal and free, but it gives you no separation between your business and your personal assets. One cracked window, one gouged cedar fence, one slip on a wet driveway, and the lawsuit reaches your bank account and your truck. An LLC walls that off, which is why most pressure washing operators form one.1State of Texas. Texas Business Organizations Code

Before you file, search the Secretary of State’s entity database to confirm your chosen name is distinguishable from existing filings. Your LLC name has to include “limited liability company,” “limited company,” or an abbreviation like “LLC.”2Texas Secretary of State. Form 205 – Certificate of Formation – Limited Liability Company If you want to do business under a different brand name, file an Assumed Name Certificate with the Secretary of State. Skipping that filing when one is required carries civil and criminal penalties under the Texas Business and Commerce Code.3Texas Secretary of State. Name Filings FAQs

You create the LLC itself by filing Form 205, the Certificate of Formation, through the SOSDirect online portal.2Texas Secretary of State. Form 205 – Certificate of Formation – Limited Liability Company The form asks for your entity name, a registered agent with a physical Texas address who can accept legal documents during business hours,4Office of the Texas Secretary of State. Registered Agents the names and addresses of your initial managers or members, a purpose (any lawful purpose is acceptable), and the organizer’s name and address. The filing fee is $300.5Secretary of State. Business Filings and Trademarks Fee Schedule Online submissions usually process within two to five business days. Once it clears, you receive a stamped Certificate of Filing. Keep a copy in your business records.

Get Your EIN From the IRS

With your LLC approved, apply for an Employer Identification Number through the IRS online application. The EIN is your business’s federal tax ID, and your bank will ask for it before opening a commercial account. The online form takes a few minutes and asks for the Social Security number of the “responsible party” (the person who controls the business) along with your entity’s legal name. You can use the number immediately after it’s issued.6Internal Revenue Service. Get an Employer Identification Number7Internal Revenue Service. Instructions for Form SS-4 (12/2025)

Register for a Sales Tax Permit

This is the step most new pressure washing owners miss. The Texas Comptroller classifies pressure washing as a taxable service, both as maintenance of tangible personal property and as building or grounds cleaning. That applies whether you’re washing a house, an office, a parking lot, or a pool deck. Residential jobs are taxable too.8Texas Comptroller of Public Accounts. Cleaning and Janitorial Services

Register for a Sales and Use Tax Permit through the Comptroller’s Webfile system before you invoice your first customer. The application asks for your business type, your EIN, and your NAICS code; pressure washing falls under NAICS 561790 (Other Services to Buildings and Dwellings).9Texas Comptroller of Public Accounts. Sales Tax Permit Requirements

The state rate is 6.25%, and local jurisdictions can add up to 2% more, so your combined rate maxes out at 8.25%.10Texas Comptroller of Public Accounts. Local Sales and Use Tax Frequently Asked Questions You charge sales tax on every invoice and remit it on the schedule the Comptroller assigns you, typically monthly or quarterly based on your volume. If you fail to collect, you still owe. The Comptroller can go back and assess the tax plus penalties.

Handle Wastewater Legally

Pressure washing runoff carries dirt, detergent, oil, paint chips, and whatever else was on the surface you just cleaned. Letting that water flow into a storm drain is illegal under both Texas and federal law, and this is where the money gets serious.

At the state level, the Texas Commission on Environmental Quality administers the Texas Pollutant Discharge Elimination System, which governs what can enter waterways and storm sewers.11Texas Commission on Environmental Quality. Wastewater and Stormwater You either capture your wastewater for proper disposal or get the discharge permit that fits your operation. The right authorization depends on where and how you discharge, so contact TCEQ before your first commercial job. Many cities layer their own ordinances on top, and enforcement intensity varies.

At the federal level, civil penalties under the Clean Water Act reach $68,445 per day per violation under 2025 inflation-adjusted figures.12Federal Register. Civil Monetary Penalty Inflation Adjustment A single afternoon of washing a commercial lot with runoff heading to a storm drain can trigger that exposure, and the EPA has pursued small operations.

Compliant operators generally use a water reclaim setup: berms or containment mats around the work area direct runoff into a collection basin, where it passes through sediment traps and oil-water separators before being reused or discharged to the sanitary sewer (not the storm sewer) with the local utility’s permission. Portable vacuum recovery units are another option. Commercial clients increasingly ask for proof of environmental compliance before signing a contract, so the equipment pays for itself fairly quickly on the right accounts.

Put Your Insurance in Place

High-pressure water can strip paint, crack glass, gouge wood, and shred landscaping. A single bad pass on a brick facade can run into thousands of dollars of repair work. General liability insurance with at least $1,000,000 per occurrence is the baseline most commercial clients and property managers require before letting you on the property. Annual premiums for a small pressure washing operation typically run between roughly $9,500 and $13,000, depending on your claims history, the surfaces you service, and your headcount.

Commercial auto coverage is the other piece you need from day one. Your personal auto policy likely won’t cover an accident that happens while you’re hauling your rig to a job, and most commercial contracts require proof of commercial auto insurance before work starts.

Workers’ compensation is where Texas is unusual. The state does not require private employers to carry it. If you decide to go without, you’re a “non-subscriber” and must file Form DWC-005 with the Texas Department of Insurance’s Division of Workers’ Compensation once you have one or more employees.13Texas Department of Insurance. Non-Subscriber Notice to Division of Workers Compensation DWC005 The tradeoff is real. Non-subscribers lose the common-law defenses of contributory negligence, assumption of risk, and co-employee negligence, so an injured employee can sue you for medical expenses, lost wages, pain and suffering, and potentially punitive damages with very few shields available. Many government and large commercial contracts require workers’ compensation coverage regardless of the state exemption.

Know the Taxes You’ll Owe Every Year

Texas Franchise Tax

Texas has no personal income tax, but every registered LLC, corporation, and partnership owes an annual franchise tax report, due each year by May 15.14Texas Comptroller of Public Accounts. Franchise Tax For the 2026 reporting year, if your annualized total revenue is $2,650,000 or less, you owe no tax, but you still have to file either a Public Information Report or an Ownership Information Report.15Texas Comptroller of Public Accounts. Texas Franchise Tax Report Forms for 2026 Above that threshold, the rate is 0.75% for most service businesses, including pressure washing.

Do not skip this filing even when you owe nothing. If you fail to submit, the Secretary of State can forfeit your entity’s right to do business in Texas, which strips the liability protection you formed the LLC to get.16Texas Secretary of State. Terminations and Reinstatements FAQs Reinstating means back-filing every missing report, paying penalties, and waiting out processing.

Federal Self-Employment Tax

Self-employment tax covers Social Security and Medicare at a combined 15.3% on your net earnings up to the 2026 Social Security wage base of $184,500. The 12.4% Social Security portion stops at that cap; the 2.9% Medicare portion applies to all net earnings. If your net earnings exceed $200,000 ($250,000 for married couples filing jointly), add a 0.9% Medicare surtax on the amount above that threshold.17Social Security Administration. If You Are Self-Employed

Because no one withholds from your pressure washing income, you make quarterly estimated payments using Form 1040-ES. The 2026 due dates are April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. You can skip the January payment if you file your full 2026 return and pay the balance by February 1, 2027.18IRS.gov. 2026 Form 1040-ES Estimated Tax for Individuals Underpayment triggers a penalty, so a conservative first-year approach is setting aside 25 to 30% of every payment you receive in a separate account for taxes.19Internal Revenue Service. Self-Employed Individuals Tax Center

The Order to Do It In

Steps one through four can realistically be finished inside a week. Insurance quotes and TCEQ guidance take longer, so start those conversations early. Your first franchise tax report won’t be due until May 15 of the year after you form, but it’s the deadline most new owners forget, and forgetting it can cost you the entity.