How to Setup a Home Care Business

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Home care providers offer a variety of services that help clients stay in their own homes rather than require institutional care. The Bureau of Labor Statistics expects job opportunities in home care to be excellent because of continuous growth in the field and high replacement needs. Many individuals in home care find it very rewarding to provide services to people in need.

Skill level:
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  1. 1

    Determine what services your business will offer to clients. Home care businesses offer many services, including companionship, transportation, meal preparation, daily cleaning, errands, personal care and more.

  2. 2

    Develop a tentative pricing schedule. Factors to consider include what services you will offer, the time of day services will be provided, the number of hours needed to complete the service, and your location. For example, you can charge a higher hourly rate for more complex services that need to be completed overnight or on holidays, or for shifts that last longer than four hours.

  3. 3

    Create a cash flow projection. Roughly estimate how many clients you will serve, for how long and at what rate to determine your income. Estimate expenses, including employee payroll, taxes, workers' compensation and office expenses. A cash flow template can help you calculate how much money you will need to keep your business up and running.

  4. 4

    Set up a formal business entity that protects your personal assets. A sole proprietorship or partnership is not recommended because your personal assets will be at risk if a client sues you. Instead, choose a limited liability company.

  5. 5

    Get workers' compensation insurance if you will be hiring people to work for you. This requirement varies by state. Contact a workers' compensation fund in your area for an estimate of the total payroll you will be paying out.

  6. 6

    Set up a payroll and accounting system, such as QuickBooks, which will assist you in paying your employees, submitting appropriate taxes, and keeping track of your income and overall expenses.

  7. 7

    Develop policies and procedures and a training program for employees. Outline safety issues, the services you offer, and procedures for problems.

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