--- title: How To Start A Home Care Business: A Comprehensive Guide --- # How To Start A Home Care Business: A Comprehensive Guide Last Reviewed: March 12, 2026 9 min read [1 comment](https://www.selecthub.com/home-health/how-to-start-homecare-business/?noamp=mobile#comments) [ ![Christina George](https://www.selecthub.com/wp-content/uploads/2024/03/cropped-Christina-Headshot-96x96.png) ](https://www.selecthub.com/author/christina-george/) [Written by Christina George](https://www.selecthub.com/author/christina-george/) Technical Content Writer [ ![Dianna Dragonetti](https://www.selecthub.com/wp-content/uploads/2024/02/cropped-Dianna-Headshot-96x96.jpg) ](https://www.selecthub.com/author/dianna-dragonetti/) [Edited by Dianna Dragonetti](https://www.selecthub.com/author/dianna-dragonetti/) Content Editor Table of Contents * [Steps To Start A Home Care Business](#Steps%5FTo%5FStart%5FA%5FHome%5FCare%5FBusiness "Steps To Start A Home Care Business") * [Create a Plan](#Create%5Fa%5FPlan "Create a Plan") * [Work Out Your Finances](#Work%5FOut%5FYour%5FFinances "Work Out Your Finances") * [Form a Legal Business Entity](#Form%5Fa%5FLegal%5FBusiness%5FEntity "Form a Legal Business Entity") * [Secure Licenses and Certifications](#Secure%5FLicenses%5Fand%5FCertifications "Secure Licenses and Certifications") * [Get the Right Insurance](#Get%5Fthe%5FRight%5FInsurance "Get the Right Insurance") * [Hire and Train Staff](#Hire%5Fand%5FTrain%5FStaff "Hire and Train Staff") * [Set Policies and Procedures](#Set%5FPolicies%5Fand%5FProcedures "Set Policies and Procedures") * [Develop a Marketing Strategy](#Develop%5Fa%5FMarketing%5FStrategy "Develop a Marketing Strategy") * [Invest in Equipment](#Invest%5Fin%5FEquipment "Invest in Equipment") * [Prepare for Operations](#Prepare%5Ffor%5FOperations "Prepare for Operations") * [Best Practices](#Best%5FPractices "Best Practices") * [Conduct Compliance Checks](#Conduct%5FCompliance%5FChecks "Conduct Compliance Checks") * [Create an Online Presence](#Create%5Fan%5FOnline%5FPresence "Create an Online Presence") * [Invest in Home Health Software](#Invest%5Fin%5FHome%5FHealth%5FSoftware "Invest in Home Health Software") * [Empower Your Caregivers](#Empower%5FYour%5FCaregivers "Empower Your Caregivers") * [Build Partnerships](#Build%5FPartnerships "Build Partnerships") * [Primary Benefits](#Primary%5FBenefits "Primary Benefits") * [Boost Your Income](#Boost%5FYour%5FIncome "Boost Your Income") * [Improve Your Clients’ Quality of Life](#Improve%5FYour%5FClients%5FQuality%5Fof%5FLife "Improve Your Clients’ Quality of Life") * [Invest in a Growing Industry](#Invest%5Fin%5Fa%5FGrowing%5FIndustry "Invest in a Growing Industry") * [Control Your Workload](#Control%5FYour%5FWorkload "Control Your Workload") * [Challenges](#Challenges "Challenges") * [Increased Liability](#Increased%5FLiability "Increased Liability") * [Emotionally Taxing Workload](#Emotionally%5FTaxing%5FWorkload "Emotionally Taxing Workload") * [Stringent Laws and Regulations](#Stringent%5FLaws%5Fand%5FRegulations "Stringent Laws and Regulations") * [FAQs](#FAQs "FAQs") * [Next Steps](#Next%5FSteps "Next Steps") Entering the [home health](https://www.selecthub.com/c/home-health-software/) market is equal parts challenging and rewarding. Like investing in Apple in the 70s, pivoting to a home care business startup may be the best idea since sliced bread. Here’s everything you need to know about how to start a home care business! [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ![Home Care Business Guide]() ## Steps To Start A Home Care Business Starting a home care business is like creating a sourdough starter. It takes plenty of patience, the right ingredients and a tried-and-true formula. Here’s a basic roadmap to help you embark on your home care business journey. ![Steps to Start a Home Care Business]() ### Create a Plan Planning is essential to the success of any new venture. First, you’ll need some clarity. Start by answering the following questions: * What is our business focus area? * What services do we want to provide? * What is our budget? * Where will we operate? * Who is our target market? * How much do we want to charge our clients? Selecting the right business structure is also crucial. * [Sole proprietorship](https://www.irs.gov/businesses/small-businesses-self-employed/sole-proprietorships) * [Partnership](https://www.irs.gov/businesses/partnerships) * [Corporation](https://www.investopedia.com/terms/c/corporation.asp) * [Limited liability company (LLC)](https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc) Keep in mind that the type of business will determine your tax amounts and organizational structure. Once you understand your scope of operations — and whether it’s viable — you can formulate a blueprint for your business. ### Work Out Your Finances Money makes the world go round. You can have a brilliant plan, but you need greenbacks to implement it. Turning a profit in the first year of operations is extremely uncommon, so you’ll need to draft a budget and figure out whether you’ll need a loan to stay afloat at the start. ### Form a Legal Business Entity Starting a business is a lot like getting married – you gotta get the government involved. You’ll need to set up as a legal business entity, so you’re not personally liable if you get sued. Next, you need to apply for an Employer Identification Number (EIN) to pay taxes. You must also apply for a [national provider identifier (NPI)](https://www.cms.gov/Regulations-and-Guidance/Administrative-Simplification/NationalProvIdentStand) number. Note that the requirements for home care business licenses vary from state to state. Check with your state’s Department of Health for assistance. Most states require you to register your business with the Secretary of State. You need to file your business name and check if it’s available. ### Secure Licenses and Certifications Before operations commence, you need to maintain compliance with federal and state regulations by applying for the right licenses and certifications. You may need additional approved training, Medicare or Medicaid certification, Home Health Aide Licensing and specific state permits. Medicare is especially important, as it opens the door for a large clientele base. [Medicare Part A](https://www.medicare.gov/what-medicare-covers/what-part-a-covers) and [Medicare Part B](https://www.medicare.gov/what-medicare-covers/what-part-b-covers) are primary patient insurance that cover several home health services. [Medicare license accreditation](https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertificationGenInfo/Accreditation-of-Medicare-Certified-Providers-and-Suppliers) exams can take up to a year in the U.S. The federal government agency will perform a complete audit of your home care business and patient records during the process. In some states, you might need to take a state jurisprudence exam to obtain the license. [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ### Get the Right Insurance Like in baseball, stay on the ball by keeping your bases covered. Protect your business and employees from unforeseen circumstances with general and professional liability insurance. ### Hire and Train Staff Teamwork really does make the dream work. Hire qualified staff who align with your company’s vision and prioritize client care. Check for up-to-date licenses and contact past employers for references. ### Set Policies and Procedures Home care is extremely people-centric. You need to set proper policies and procedures to provide the best care possible. Define and enforce the following areas of operation: * Client intake * Care planning * Hiring and HR * Scheduling * Payroll and billing * Caregiver training * Client rights and responsibilities ### Develop a Marketing Strategy Now, you have to get people in the door. You need to develop marketing strategies to reach your target audience and get referrals. Some ways to do this are by building an online presence, investing in [marketing](https://www.selecthub.com/c/marketing-automation-software/) and [CRM software](https://www.selecthub.com/c/crm-software/), and working on your branding. ### Invest in Equipment To run a homecare business startup successfully, you’ll need to invest in the tools of the trade. The equipment you need depends on the type of care you provide. Basic equipment includes personal care tools, moving, handling and lifting equipment and medical devices. ### Prepare for Operations Before you open your doors, setting up operations and processes is essential. Ensure day-to-day duties flow smoothly by implementing workflows for scheduling, time-keeping, EVV, time and mileage tracking. [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ## Best Practices If you’ve made it this far, congratulations! You now have a bare-bones idea of how to start a home care business. However, there are some tricks of the trade you’ll want to use. ![Home Care Business Tips]() ### Conduct Compliance Checks Stay ahead of compliance by conducting regular compliance checks and test run audits. Record due dates for employee licenses and set reminders when they need to be updated. ### Create an Online Presence We’ve all been guilty of googling businesses we come across (and judging their credibility based on their website). Creating a website, setting up a Google Business profile and managing your social media play a large role in increasing brand awareness and customer trust. ### Invest in Home Health Software Imagine you could transfer past patient records, set up caregiver schedules, create care plans, manage claims and monitor EVV using one platform. [Home health software](https://www.selecthub.com/c/home-health-software/) uses automation, real-time information and workflow management to streamline operations. It also integrates with other software like EHR, accounting and CRM software to facilitate quick data transfers and minimize unnecessary code-switching. ### Empower Your Caregivers Happy caregivers equals happy patients. Give your caregivers tools to succeed by creating training manuals, setting up clear processes and giving them access to educational workshops and seminars. Set up HIPAA-compliant secure messaging to make communicating with backend staff and patients easy. ### Build Partnerships Quid pro quo goes a long way to building a loyal customer base. Partnering with local hospitals, nursing homes and healthcare providers will help boost your referrals and build your reputation in the community. [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ## Primary Benefits Like training for an Ironman, figuring out how to open a home health agency takes planning, preparation and commitment. It’s not a decision you make on the fly. However, the rewards for investing in a successful home care business will make it worth your while. ![Home Care Business Benefits]() ### Boost Your Income Investing in the homecare industry can land you a pretty penny. Increased demand from COVID and an aging population led to a revenue boom of [$136.2 billion](https://www.ibisworld.com/united-states/market-research-reports/home-care-providers-industry/) in the last five years, with no sign of slowing down. Since home care isn’t routinely short-term, you can rely on a steady income stream. ### Improve Your Clients’ Quality of Life Helping your patients recover the comfort of their home can play a large role in boosting morale, increasing independence and maintaining a positive atmosphere. It also improves health outcomes and cuts down on hospital bills. Patients who receive home health care have [lower rates of readmission](https://healthpayerintelligence.com/news/cms-home-healthcare-policy-reduced-hospital-readmissions). ### Invest in a Growing Industry [McKinsey predicts the home health industry will grow](https://www.mckinsey.com/industries/healthcare/our-insights/what-to-expect-in-us-healthcare-in-2023-and-beyond) from $654 billion in 2021 to $790 billion in 2026\. Getting in on the ground floor means you can build your business to meet rising demand and navigate changes in government policy. ### Control Your Workload Flexibility isn’t a perk for just your patients. As a business owner, you can choose your clients, pick your operating hours, hire staff to help with your workload and manage your involvement. You can scale your operations up or down based on your clients’ needs and demands. [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ## Challenges Every business comes with its own unique challenges. Home care is no exception. ### Increased Liability Prime candidates for home health aren’t usually at their peak. They may be vulnerable to comorbidities and are at high risk for injury or illness. If an incident occurs under your care or due to caregiver error, you may be liable. ### Emotionally Taxing Workload Running any business is stressful. But, any business that deals directly with a client’s health and quality of life is especially taxing. You must prepare to navigate distressing scenes, difficult clients and unhappy caregivers. ### Stringent Laws and Regulations Home care is highly regulated. Businesses have to juggle PDGM models, OASIS assessments, HIPAA compliance and changing CMS regulations. Penalties for failing to meet compliance requirements can lead to hefty fines and lawsuits. ## FAQs [What is a home care business?](#group%5F182) A home care business is a professional support service providing assisted care to home patients. The support offered can range from nursing services to physical therapy and hygiene needs. Typically, home care businesses can be medical or non-medical. Medical home health requires trained medical professionals to run tests, monitor symptoms, administer medicine and dress wounds. Usually, [reporting and compliance](https://www.cms.gov/medicare/quality-initiatives-patient-assessment-instruments/homehealthqualityinits/home-health-quality-reporting-requirements) are stricter. Non-medical home care primarily improves clients’ quality of life and involves companionship care, medication reminders, cooking and cleaning. [How much does it cost to start a home care business?](#group%5F113) Breaking into the home care business without knowing how much it will cost you is like going on a road trip without GPS. It’s essential to understand typical costs and potential money pits. Here’s a basic rundown of costs you can expect: **Equipment:** You’ll need to factor in medical equipment like gloves, tools to monitor symptoms, medicine dispensers and accessibility aids. You may have additional insurance or transportation costs if you prefer to source your equipment through a vendor. **Licenses and Permits:** Depending on the state you’re in, license fees differ. You must pay a one-time registration fee and purchase certifications pertinent to your state. **Insurance:** Account for the unaccountable with general and professional liability insurance coverage. You may need to spring for additional premiums if you are a medical home care business with a larger number of caregivers. [Compare Top Home Health Software Leaders](https://pmo.selecthub.com/request-custom-scorecard/?category=Home%20Health%20Software) ## Next Steps Deciding to start a new business is a gargantuan step. It isn’t as simple as choosing a restaurant for lunch. We hope this article serves as a detailed blueprint on how to start a home care business. If you need an extra cheat code, use our [free requirements template](https://pmo.selecthub.com/hhs-requirements-onsite/) to determine what [home health software](https://www.selecthub.com/home-health/best-home-health-software/) may be a good fit for you. How do you think software can help kickstart your home care business? Let us know in the comments below! ### Trending Topics #### [Home Health Care](https://www.selecthub.com/category/home-health/) [Home Health Value-Based Purchasing Model: A Comprehensive Guide](https://www.selecthub.com/home-health/value-based-purchasing-home-health/) [Staying on top of home health care rules and regulations is a full-time job. It… ](https://www.selecthub.com/home-health/value-based-purchasing-home-health/) [ ![Christina George](https://www.selecthub.com/wp-content/uploads/2024/03/cropped-Christina-Headshot-96x96.png) Christina George ](https://www.selecthub.com/author/christina-george/) Mar 12, 2026 #### [Home Health Care](https://www.selecthub.com/category/home-health/) [Home Health Bag Technique: A Comprehensive Guide](https://www.selecthub.com/home-health/home-health-bag-technique/) [A nursing bag, medical supply kit or healthcare bag is essential to delivering effective home… ](https://www.selecthub.com/home-health/home-health-bag-technique/) [ ![Christina George](https://www.selecthub.com/wp-content/uploads/2024/03/cropped-Christina-Headshot-96x96.png) Christina George ](https://www.selecthub.com/author/christina-george/) Mar 12, 2026 #### [Home Health Care](https://www.selecthub.com/category/home-health/) [The Best CDS Tools In 2026](https://www.selecthub.com/home-health/cds-tools/) [Evolving technology and regulations in healthcare mean more software acronyms to remember: EMR, PHR, EHR… ](https://www.selecthub.com/home-health/cds-tools/) [ ![Christina George](https://www.selecthub.com/wp-content/uploads/2024/03/cropped-Christina-Headshot-96x96.png) Christina George ](https://www.selecthub.com/author/christina-george/) Mar 12, 2026 Originally published in August 2024 and last updated in March 2026\. Contributions from Christina George, and Dianna Dragonetti. ## About the Contributors The following team members helped research, create, and review this content. [ ](https://www.selecthub.com/author/christina-george/) Written by [Christina George](https://www.selecthub.com/author/christina-george/) Technical Content Writer An Associate Editor at SelectHub, Christina George creates and edits articles spanning project management, CPQ, CRM, marketing automation and home health software. As a Bachelor of Arts graduate with a triple major in Economics, Political Science and Sociology, her aim is to bring an integrated and simplified approach to long-form technical content. Formerly a food writer, copywriter, and social media sleuth, she has a soft spot for a quality pun. When not crafting articles and editing buyer's guides, you can find her attempting to score goals on the football field, binge-watching Curb Your Enthusiasm, or re-reading Pride and Prejudice for the nth time. [See Full Bio](https://www.selecthub.com/author/christina-george/) [ ](https://www.selecthub.com/author/dianna-dragonetti/) Edited by [Dianna Dragonetti](https://www.selecthub.com/author/dianna-dragonetti/) Content Editor As an editor, Dianna Dragonetti leads a team of five writers in writing about a variety of software, with an emphasis on how these tools empower businesses. Categories include accounting, learning management systems, content management systems, supply chain management, and electronic data interchange. [See Full Bio](https://www.selecthub.com/author/dianna-dragonetti/) Christina GeorgeThe Best CDS Tools In 2026 * ‹ * › ### Conversation (1) ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/home-health/how-to-start-homecare-business/#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. Δ * ![Avatar photo](https://secure.gravatar.com/avatar/aaa53856e7827e75ae894a4a2729723ff85096b37823225484046083daea7b62?s=96&d=mm&r=g) #### **Babucarr Jeng** \- April 3, 2024 I am interested in opening a home care business, thank you for the insight. **[Reply](#comment-192501)** [ Go to mobile version ](https://www.selecthub.com/home-health/how-to-start-homecare-business/?amp=1) **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 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