Window Cleaning Business Entity Structure: LLC, S-Corp, or Sole Proprietorship

By Yarik Yarosh, CPA ·September 5, 2026 ·3 min read

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

Window cleaning is a low-capital, high-margin trade that scales well with route density. The business has minimal equipment costs (poles, squeegees, a van or truck) compared to trades like roofing or tree service, which means net profit as a percentage of revenue is typically 50-65% for a solo operator. This high margin makes the S-Corp election valuable at relatively modest revenue levels. Window cleaning is NOT a specified service trade or business (SSTB) under IRC 199A.

✓Key takeaway

Entity comparison for window cleaning:

Sole proprietorship / single-member LLC:

All net profit subject to SE tax (15.3%)
Full QBI deduction (20% of net profit)
No payroll complexity
Best for: solo window cleaners under $70,000 net profit

S-Corp:

Distributions avoid FICA
Reasonable salary for a window cleaning owner-operator: $35,000-$55,000
The reasonable salary is at the lower end of the trades because the market rate for a window cleaner is moderate
QBI deduction on K-1 only
Best for: window cleaning businesses with $70,000+ net profit

Why the S-Corp break-even is lower for window cleaning:

Low workers’ comp rates. Window cleaning workers’ comp is 5-8% of payroll (much lower than roofing or tree service). This means the S-Corp’s additional insurance cost on the owner’s salary is manageable.
Low equipment costs. Minimal depreciation means net profit stays high as a percentage of revenue.
Recurring revenue. Commercial contracts (office buildings, storefronts, restaurants) provide monthly or quarterly recurring revenue, making income predictable and the S-Corp salary easy to justify.
High margins. Chemical and supply costs are low ($2,000-$5,000/year). The business is essentially selling labor.

At what revenue does the S-Corp make sense for a cleaner?

Hypothetical example

Round numbers. A solo window cleaning operator. Revenue: $110,000 (mix of residential and commercial). Expenses: $20,000. Net profit: $90,000.

Expenses:

Vehicle (standard mileage, 15,000 miles): $10,500
Equipment and supplies (poles, squeegees, solution, towels): $2,500
Insurance (GL): $1,200
Marketing (Google Ads, Nextdoor): $2,000
Phone, scheduling software: $1,800
Licensing: $200
Uniforms: $300
Total: $18,500 (rounded to $20,000 with misc)

Sole proprietorship:

SE tax: $90,000 x 92.35% x 15.3% = $12,713
Income tax (after deductions and QBI): approximately $7,800
Total: $20,513

S-Corp (salary: $42,000):

Owner salary: $42,000
Employer FICA: $3,213
K-1: $90,000 - $42,000 - $3,213 = $44,787
W-2 tax: approximately $7,200
K-1 tax (after QBI 20% x $44,787): approximately $5,500
Total: $12,700

S-Corp savings: $20,513 - $12,700 - $3,213 - $1,200 = $3,400/year

At $90,000 net profit, the S-Corp saves approximately $3,400/year. That’s meaningful for a solo operator.

At $70,000 net profit (the approximate break-even):

Sole prop total tax: approximately $15,000
S-Corp total tax (salary $38,000): approximately $10,500
S-Corp costs: $2,907 FICA + $1,200 payroll = $4,107
Net S-Corp savings: approximately $400/year (marginal)

At $120,000 net profit:

Sole prop total tax: approximately $27,500
S-Corp total tax (salary $48,000): approximately $16,500
S-Corp costs: $3,672 FICA + $1,200 payroll = $4,872
Net S-Corp savings: approximately $6,100/year

Growth path for window cleaning: The typical growth path: solo operator -> add 1-2 employees -> add a crew leader -> scale to multiple crews. At each stage:

Solo ($90,000 net): S-Corp saves $3,400/year
Solo + 1 employee ($130,000 net): S-Corp saves $5,500/year
2 crews ($200,000+ net): S-Corp saves $8,000-$12,000/year

The S-Corp becomes increasingly valuable as the business scales because the owner’s reasonable salary grows slowly while K-1 income (exempt from FICA) grows quickly.

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

Related guides:

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Cite this page

Yarik Yarosh, CPA. "Window Cleaning Business Entity Structure: LLC, S-Corp, or Sole Proprietorship." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/window-cleaning-entity-structure-scorp

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