How to Start a Home Health Care Business

Start a home health care business by following these 10 steps:

1. Plan your Home Health Care Business
2. Form your Home Health Care Business into a Legal Entity
3. Register your Home Health Care Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Home Health Care Business
6. Get the Necessary Permits & Licenses for your Home Health Care Business
7. Get Home Health Care Business Insurance
8. Define your Home Health Care Business Brand
9. Create your Home Health Care Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your home health care business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourHome Health Care Business Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a home health care business?

A home care business can be started with very little capital and hassle. Other than any licensing fees that a state requires, there are few startup costs. The two essential elements are a reliable vehicle and a cell phone, but most business owners use their personal vehicle and phone. Many business owners also use a computer, which they usually already have as well. According toSenior Service Business, these startup costs can be kept under $900.

To keep startup costs low, many business owners begin by offering only non-medical assistance. This helps ensure they don’t have to pay for classes and reduces how much red tape they must go through.

Businesses are typically run from a home office, so there aren’t any startup costs for office space.

What are the ongoing expenses for a home health care business?

The ongoing expenses for a home care business are maintenance and fuel for a vehicle, a phone bill and any internet access costs. These expenses should be considered when determining a business’ hourly rate.

Who is the target market?

A home care business’ ideal client is someone who wants to continue living on their own but needs help with basic tasks. This may be:

• An elderly senior who wants to remain in their home rather than assisted living
• A patient who recently had surgery and would like to recover in their own house
• Someone who has a medical condition and needs someone who can help with basic tasks (possibly while another service provides medical assistance)

Additionally, clients sometimes also need some savings, because home care isn’t always covered by medical insurance.

How does a home health care business make money?

A home care business makes money by charging clients an hourly rate on a fixed weekly schedule. Some businesses also offer clients a live-in service for a fixed monthly fee.

How much can you charge customers?

How much home care businesses charge varies a lot depending on where they’re located. Businesses in rural areas typically charge around $18 per hour, while those in major cities may charge as much as $40 per hour. The national average, Senior Service Business says, is $24 per hour.

How much profit can a home health care business make?

According to a report cited byUSA Today, home health care franchises are among the five most profitable franchises. In the report that USA Today noted, some franchises grossed over $1 million -- and had gross margins between 30 and 40 percent. New businesses make an average of $248,000 in their first year, with 12 to 15 percent of that being net profit.

How can you make your business more profitable?

Home care businesses can charge more by offering medical services. Getting set up to provide medical services takes work, though, as aides must be certified and the business must be set up to accept health insurance (especially Medicare). Additionally, in order to accept Medicare, all of the medical services a business provides must be overseen by a physician -- which requires establishing relationships with physicians. For these reasons, many business owners don’t pursue these opportunities until they’re ready to purchase a franchise.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your home health care business is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

未能获得必要的许可证和执照can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate Home Care Business:

• Home Health Aid Licensing (HHA):
An HHA license is required for a person working for a home health agency or hospice that performs home health services ordered by a licensed physician, chiropractor, podiatrist, or optometrist.
• Certified Nurse Assistant (CNA):
CNA许可证需要一个单独的我s operating a personal health care business that is not prescribed by a doctor. In addition to assisting clients with normal day-to-day activities, a CNA can also bathe clients and remind them to take prescribed medication.

In addition to these state requirements, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:

• Check with your town, city or county clerk’s office
• Get assistance from one of the local associations listed inUS Small Business Associations directory of local business resources.

Services Contract

Home care businesses should require clients to sign a services agreement before taking on a new client. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Anyone who is interested in helping others may be well-suited for starting a home care business. Business owners often spend a lot of time with their clients, and being able to build relationships is important. Patience and compassion are also vital, as some clients may be difficult to work with at times.

Additionally, business owners should be self-disciplined and organized. They’re often expected to help with multiple tasks that have to be prioritized.

What happens during a typical day at a home health care business?

Home care business owners spend much of their time with clients. A single visit may entail any of the following:

• Preparing meals
• Basic cleaning
• Running errands
• Taking your client to appointments and social engagements

Some business owners also help with basic hygiene and/or provide simple medical services. Doing this type of work usually requires specialized certifications.

As a home care business grows, the owner’s responsibilities typically transition to more administrative tasks. They’ll spend more time finding and managing assistants and aides, and less time working directly with clients.

What are some skills and experiences that will help you build a successful home health care business?

家庭护理业务所有者通常不需要specialized training unless they offer medical services. In some states, non-medical home care businesses need a license, but this is more of a legal process than a training program. Good people, communication and business skills are usually all that’s required to get started in this industry. Business owners that are lacking in any of these areas may want to take a class at a local community college or attend a seminar on the area they’re weak in.

Business owners that want to offer medical services will need specific training. There are two licenses that aides can get: certified nursing assistant (CNA) certification, which is a basic certification, and home health aide (HHA) certification, which is more advanced. TheAmerican Red Crossoffers CNA classes in several states, andAll Nursing Schoolslists classes throughout the country.Learn.orglists several schools that provide HHA training.

What is the growth potential for a home health care business?

A home care business may be a small, one-person operation, or it can have several aides serving a city or geographic region.