Power Washing Business: LLC vs. S-Corp Tax Structure

By Yarik Yarosh, CPA ·September 5, 2026 ·4 min read

Written by Yarik Yarosh, CPA (US & Canada) September 5, 2026 · FL CPA license AC61704 · CPA Ontario

Power washing (also called pressure washing) is a physical trade business that isn’t classified as a specified service trade or business (SSTB) under IRC 199A. The business involves using high-pressure water (and sometimes chemical treatments) to clean exterior surfaces: driveways, siding, decks, roofs, commercial buildings, and fleet vehicles. The full 20% QBI deduction is available at all income levels. Power washing has among the highest margins in the trades (60-80%) because material costs are minimal (water and cleaning chemicals only), and the primary investment is a commercial pressure washer ($3,000-$15,000) plus a truck or trailer to carry it.

✓Key takeaway

Power washing business entity structure:

SSTB classification: NOT an SSTB. Power washing is a physical cleaning trade. Not consulting, financial services, or other enumerated SSTB categories.

Revenue model:

Residential: driveway ($150-$300), house wash ($300-$600), deck ($150-$350), roof soft wash ($300-$700)
Commercial: storefronts ($200-$500), parking lots ($500-$2,000), fleet washing ($50-$150/vehicle), restaurant hoods ($200-$400)
Recurring contracts: HOA common areas, restaurant hoods (quarterly), fleet washing (weekly/monthly), gas stations (monthly)

Revenue range:

Solo operator: $60,000-$150,000/year
Solo with helper: $100,000-$200,000/year
Multi-crew operation (2-3 rigs): $250,000-$500,000+/year

Margins (among the highest in trades):

Material costs (chemicals, water): 3-8% of revenue
Fuel: 5-10% of revenue
Equipment maintenance: 3-5% of revenue
Insurance: 3-5% of revenue
Net margin (solo operator): 60-80%
The high margin means power washing reaches S-Corp break-even at relatively modest revenue

Equipment costs (moderate):

Commercial pressure washer (hot water): $3,000-$8,000
Commercial pressure washer (cold water): $1,500-$4,000
Soft wash system: $2,000-$5,000
Surface cleaner attachment: $200-$600
Hose, fittings, spray tips: $500-$1,500
Trailer or truck-mounted setup: $3,000-$10,000
Water tank (if needed): $500-$2,000
Chemical injection system: $200-$500
Total startup equipment: $8,000-$25,000

S-Corp break-even: $55,000-$65,000 in net profit

Due to high margins, a solo operator doing $80,000-$100,000 in revenue often hits this threshold
Payroll + return costs: $1,700-$3,500/year
QBI deduction interaction: at $70,000 net profit, S-Corp with $35,000 salary saves approximately $2,500-$3,500/year

Seasonality:

Northern markets: highly seasonal (April-November, shutdown December-March)
Southern markets: year-round with mild winter slowdown
Christmas light installation: common add-on for the off-season
Roof soft washing: extends the season (can work in cooler temps)

When does S-Corp save a power washing operator money?

Hypothetical example

Round numbers. A solo power washing operator. Single filer. Northern market (8-month season, April-November). 4-6 jobs/day during season.

Revenue: $120,000

Service	Jobs/Year	Avg Price	Revenue
Driveway/patio	200	$225	$45,000
House wash	150	$400	$60,000
Deck cleaning/staining	30	$300	$9,000
Commercial (monthly contracts)	24	$250	$6,000
Total			$120,000

Annual expenses:

Category	Amount
Chemicals (sodium hypochlorite, surfactant, etc.)	$4,800
Fuel (truck + equipment)	$7,200
Insurance (GL + auto)	$3,500
Equipment maintenance/repair	$2,400
Phone, booking software	$1,200
Marketing (Google, yard signs, door hangers)	$3,000
Water (if purchasing)	$600
Total	$22,700

Net profit: $120,000 - $22,700 = $97,300

Option A: Sole Proprietor

SE tax: $97,300 x 92.35% x 15.3% = $13,746
QBI deduction: $97,300 x 20% = ($19,460)
Income tax: approximately $9,200
Total: $22,946

Option B: S-Corp ($45,000 salary)

FICA: $45,000 x 15.3% = $6,885
K-1: $52,300
QBI: $52,300 x 20% = ($10,460)
Income tax: approximately $11,100
S-Corp costs: $2,200
Total: $20,185

S-Corp saves $2,761/year at $97,300 profit. Worth it.

At $70,000 profit (early growth stage):

S-Corp ($35,000 salary) saves approximately $1,500/year. Marginal, but becomes clearer as revenue grows.

Year 1 equipment purchase: The total startup cost ($15,000) is modest compared to most trades. Even with full Section 179 or bonus depreciation:

$15,000 deduction reduces profit from $97,300 to $82,300
Tax savings: approximately $5,000
Unlike tow truck or mobile grooming, there’s no massive Year 1 loss event
The low equipment cost means power washing has one of the smoothest Year 1 to Year 2 transitions

Commercial contract advantage: Monthly commercial contracts ($250-$2,000/month per client) create predictable recurring revenue:

10 commercial contracts at $500/month = $60,000/year
This revenue continues year-round in most markets (covered areas, heated surfaces)
Commercial work smooths the seasonal pattern
At $60,000 in commercial revenue + $60,000 residential: the seasonal swing is much milder

Soft washing upgrade: Adding soft washing (chemical cleaning for roofs, vinyl siding, stucco) extends the service menu:

Roof soft wash: $300-$700 per home (higher price than a standard house wash)
Equipment: $2,000-$5,000 additional (chemical tanks, low-pressure pumps)
Revenue increase: $20,000-$40,000/year from a $3,000 investment
ROI: 7x-13x in Year 1

Illustrative numbers only, not a real client and not advice for your facts.

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Cite this page

Yarik Yarosh, CPA. "Power Washing Business: LLC vs. S-Corp Tax Structure." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/power-washing-entity-structure-scorp

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.