How to Set Up a Home Nursing Business

Updated April 17, 2017

Due to the large number of baby boomers who are retiring, there is a growing demand for elderly care. Starting a home nursing business is a great way to not only meet the health needs of the elderly, but also a great way to make a lucrative business out of it. There are a few things you need to consider before you start this enterprise. Make sure you have a good business plan properly set up and the right credentials to conduct your business legally.

Determine what licensing or zoning laws are required to set up a nursing home by contacting your local county's zoning division. The area, parking spaces and street may all determining factors for where you can legally operate your nursing home. Understand what the zoning requirements are before you establish the location of your nursing home.

Make sure you have the necessary licenses for opening up a nursing home. For example, you may need to obtain a Certificate of Need according to what state you live in. The Certificate of Need is necessary for the construction of medical facilities. Call the Certificate of Need office at 573-751-6403, or visit their website at for more information on how to apply. You will also need a nursing home administrator license, which can be obtained from your state's health licensing board. In addition to your own license, make sure that your employees, including any other nurses, assistants or doctors, have the required credentials and licenses to allow you to legally operate your nursing home.

Finance your business. You may not have the capital that it takes to start up your home nursing business, but you can get a loan from a bank depending on your credibility. Have a business plan ready to show that you are serious about your business. It should include your business goals, budget, financial projects and employee management. Go to your nearest bank and ask a representative for more information on applying for a business loan to set up a home nursing business.

Obtain a federal identification number from the IRS. This is also called an employer identification number, or EIN. An EIN is needed for any business that involves handling or managing taxes. You can apply for an EIN online, by a toll-free telephone service, by FAX or by mail. Go to the IRS website at to find more information on how to apply for an employer identification number.

Start hiring a credible staff for your nursing home. Think of a nursing like a hospital. You need the best people to ensure the comfort and well-being of your residents. When hiring employees, consider licensed nurses, a diet specialist, social service workers and sanitary workers. You want to have a well-rounded staff to serve the variety of health needs in your nursing home.

Promote your nursing home business. Now that you have the basic requirements for setting up a home nursing business, the next step is to go out there and promote it. Some ways to promote your business are posting ads in the Yellow Pages or on Craigslist, handing out flyers to the public or attracting clients to your home nursing business website through social media and networking with other people online. The more you can get out there and spread the news about your nursing home, the higher chances you will have for attracting potential clients to your business.

Things You'll Need

  • Certificate of Need
  • Nursing home administrator license
  • Employer identification number
  • Nursing home business plan
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About the Author

Located in Orange County, Calif., Hulbert Lee has been writing for online since 2009. He graduated with a bachelor's degree in English and a minor in creative writing from the University of California at Riverside.