Personal care and services · LLC guide · updated
How to start an LLC for a non-medical home care agency
Home care agencies send caregivers into clients' homes to help with daily living. Falls, injuries, theft accusations and wage claims are the major risks. An LLC holds the license, the caregiver payroll and the client agreements.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Home care license
- Caregiver background checks
- Workers' comp
- Medicaid enrollment
Non-Medical Home Care Agency businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 624120), the latest U.S. totals.
Why non-medical home care agency owners form an LLC
Client falls
Falls during transfers or bathing are the most common claims.
Theft and abuse allegations
Background checks and bonding help protect clients and the agency.
Wage and hour claims
Overtime and travel time between clients.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a non-medical home care agency
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Professional and general liability
Covers client injuries.
- Workers' compensation
Caregivers lift and move clients; injuries are common.
- Fidelity bond
Covers caregiver theft.
Taxes
- Caregivers are usually employees
Agencies that schedule and supervise caregivers should run them on payroll. IRS / agency page
- Payroll taxes
Payroll is your largest cost; budget employer taxes into rates.
Skilled nursing and medical tasks need a home health license and often Medicare certification. Pick the services first so the LLC's purpose and license match.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a non-medical home care agency LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need a license to start a home care agency?
Many states require one for non-medical home care, and medical home health always needs one.
Can caregivers be 1099 contractors?
Usually not when the agency schedules and supervises them. They are generally employees.
Do agencies pay overtime to caregivers?
Under the DOL rule in effect since 2015, third-party agencies must pay minimum wage and overtime.
What insurance does a home care agency need?
Liability, workers' comp and a fidelity bond.
How much does it cost to form an LLC for a non-medical home care agency?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my non-medical home care agency?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Non-Medical Home Care Agency LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.