W-2 or 1099?

If you’re just getting started, this could save you a lot of money and stress.

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We use Breezeway to schedule every clean, run quality control checks, and report issues in real time. It keeps our team organized and makes sure nothing slips through the cracks. If you're still managing your business through text threads, it's time to level up.

One of the biggest decisions you’ll make when starting a cleaning business is how to staff it.

A lot of people want to jump straight to W2 employees. It sounds official. Like you’re building a real team. But I think it’s the wrong move for most people starting out.

With W2 employees, you’re taking on a lot of risk.
You owe them hours whether you have bookings or not.
You’re on the hook for payroll taxes, workers comp, gas reimbursement, liability insurance, and all the admin that comes with it.

That’s a lot to carry when you’re just getting started.

A better approach is to start with 1099 contractors.

You pay them per job and that’s it.
No payroll. No guaranteed hours. No taxes or reimbursements.
And if someone stops showing up or isn’t meeting your standard, you stop sending them jobs. No need for a formal “you’re fired” moment.

It’s simple. It’s flexible. And it keeps you lean.

Now, it’s not perfect. You’ll probably run into a few challenges like less loyalty or more scheduling issues. But for most new businesses, it’s worth it.

Eventually, as you grow and want more consistency, W2 employees may make sense. But until then, contractors are likely your best option.

That said, one thing I hear a lot is:
“How do I build a strong team if everyone’s a contractor?”

Here’s how we’ve been trying to do it:

  • We run a team call every other week. Just 30 minutes to share updates and shout out a cleaner who crushed it.

  • Once a month, we invite everyone to breakfast. It’s casual, but it builds connection.

  • We do a Cleaner of the Month award with a $15 Amazon gift card. It’s small, but always appreciated.

You don’t need full-time employees to create culture. But you do need to show up for your people and make them feel valued—just like you would if they were W2.

So if you’re just starting out, keep it simple.
Start with contractors. Build smart. And grow from there.

Hope you can learn from my mistakes and skip a few headaches.

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Until next time,

Logan