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:**

Want this checked against your own situation?

Start with a Diagnostic: a CPA licensed in the US and Canada reads your file and tells you in writing what's wrong and how to fix it, three to four business days after you finish the questions. The report is $250. If you hire us for any work after that, you get the $250 back as a discount on that work. Or send us your return or your letter and get a fixed price, free.

Start a Diagnostic →See prices

Get a fixed price, free

Get the next cross-border guide by email

One or two plain-English guides a week on US-Canada tax. No spam, unsubscribe anytime.

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.