Start free

How to Start a Home Care Business

What it takes to legally start a home care business in the US — licensing, structure, EIN, taxes, insurance, and your first customers. The steps are the same everywhere; the forms and fees depend on your state, so pick yours below for the exact links.

Typical startup cost
$5,000–$40,000
Licensing
state + local — varies
Best structure
LLC for most
First customers
referrals + local search

See your home_care launch plan

Two quick taps — free, no account needed yet.

Do you already have the equipment or vehicle you need?

What's your starting budget?

  1. Check the licensing for home care work

    Most states now license non-medical home care agencies, requiring caregiver screening, training, supervision policies, and sometimes a registered nurse on staff. Medicaid billing adds further certification. This is the part that varies most by state — some require a state license or registration before you can advertise, others leave it to the city or county. Confirm both your state board and your local government before you take a job.

  2. Decide what the business needs to open

    Non-medical in-home care — companionship, help with daily activities, respite for families. The setup areas that usually matter for a home care business: State home care agency license (non-medical), Caregiver background checks + training, Bonding + liability + workers' comp, Care plans and scheduling software, Private-pay vs. long-term-care insurance billing. Typical cost to get operational: $5,000–$40,000.

  3. Pick a structure — sole proprietor or LLC

    You can start as a sole proprietor with no filing, or form an LLC (usually $50–$300 depending on your state) for liability protection. For hands-on trade work where something can go wrong on a customer's property, most owners choose the LLC.

    LLC filing fee and steps by state ↗

    Already know enough? Get your home_care numbers now.See my plan ↑

  4. Get a free EIN from the IRS

    An Employer Identification Number is free and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  5. Register for state taxes and get insurance

    Register with your state's tax agency if you'll collect sales tax, then line up general liability insurance and a surety bond — most contracts and license boards require proof of coverage.

  6. What home care businesses charge

    $28–$40/hour private-pay for non-medical care, often with 3–4 hour minimums; live-in and 24-hour care priced daily. Long-term-care insurance and VA benefits are common payers alongside private pay. Structurally growing with the aging population and the preference to age at home. Referrals from hospital discharge planners, assisted-living communities, and elder-law attorneys drive steady placements.

  7. Get your first home care customers

    Discharge planners, assisted-living referrals, and Area Agency on Aging listings. Referral relationships with hospital discharge planners, senior communities, and elder-law attorneys drive steady placements.

    Getting customers for a home care business ↗

  8. The mistake most first-year home care owners make

    Underestimating caregiver recruiting and turnover. The bottleneck is almost never clients — it's reliable, screened, trained caregivers. Agencies that treat recruiting and retention as the core job scale; the rest stay stuck.

Build your home care launch plan

FirstBearing turns this into a step-by-step roadmap for your exact business — the right forms, the official links, what to charge, and one next step every day. Free to build, no card. $19.99/mo only if you want FirstBearing to keep running it for you.

Start free

Frequently asked

How do I start a home care business?

Check the licenses for home care work in your state, pick a structure (sole proprietor or LLC), get a free EIN from the IRS, register for state taxes, open a business bank account, get general liability insurance and a bond, then set up a Google Business Profile and line up your first jobs. The order and the exact forms depend on your state.

Do I need a license to start a home care business?

Most states now license non-medical home care agencies, requiring caregiver screening, training, supervision policies, and sometimes a registered nurse on staff. Medicaid billing adds further certification.

How much does it cost to start a home care business?

Plan for $5,000–$40,000 to get operational, plus $50–$300 if you form an LLC (varies by state). An EIN is free, and general liability insurance runs a few hundred dollars a year for most solo operators.

What should I charge for home care?

$28–$40/hour private-pay for non-medical care, often with 3–4 hour minimums; live-in and 24-hour care priced daily. Long-term-care insurance and VA benefits are common payers alongside private pay.

How much do home care businesses make?

It depends on your rates, your utilization, and your area. See the income and pricing breakdown for a home care business for typical owner take-home and what to charge.

How much does a home care business license cost?

It depends on your state and exactly which license applies — a state professional license commonly runs $50–$300 plus any exam or renewal fee, and a local city/county business license is often another $25–$100. That's separate from the $50–$300 LLC filing fee if you form one. Use the License Finder tool with your state for the exact fee for home care work.

How much does home care business insurance cost?

General liability insurance for a solo home care operator typically runs $300–$800 a year, more with commercial auto coverage or a higher liability limit, plus a surety bond that usually costs $100–$500/yr. Most contracts, landlords, and license boards require proof of coverage before you can start.

Where do the first home care customers come from?

Discharge planners, assisted-living referrals, and Area Agency on Aging listings.

Official sources

Fees and timelines are commonly-cited figures last reviewed September 2026 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

Related

AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center