{"id":1803809,"date":"2026-07-21T17:54:57","date_gmt":"2026-07-21T15:54:57","guid":{"rendered":"https:\/\/lexpress-franchise.com\/en-us\/articles\/open-a-home-care-business\/"},"modified":"2026-07-21T15:16:17","modified_gmt":"2026-07-21T13:16:17","slug":"start-a-home-care-business","status":"publish","type":"post","link":"https:\/\/lexpress-franchise.com\/en-us\/articles\/open-a-home-care-business\/","title":{"rendered":"How to Start a Home Care Business in the US in 2026: Costs, Steps, and What You Need to Know"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>The U.S. home care market reached an estimated <strong>$173.6 billion<\/strong> in 2026, according to IBISWorld, driven by an aging population and growing preference for at-home services over institutional care. The Bureau of Labor Statistics projects <strong>22%<\/strong> employment growth for home health and personal care aides through 2032, one of the fastest rates of any occupation. This article covers what opening a home care business in the U.S. typically involves: types of services, licensing steps, startup costs, and franchise alternatives.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-76b4f0d02636f2ac4c76aa6a61dd4748\">Can Anyone Start a Home Care Business?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the United States, home care businesses generally fall into two categories: <strong>non-medical home care agencies<\/strong>, which provide personal care, companion care, and homemaker services, and <strong>home health agencies<\/strong>, which deliver skilled medical services such as nursing, physical therapy, and wound care. The requirements to open each type differ significantly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For non-medical home care, <strong>47 states plus the District of Columbia<\/strong> require some form of licensure or registration, according to Harbor Compliance. No specific healthcare background is legally required in most states, though many states do require that agencies employ or contract with a <strong>licensed administrator<\/strong> or <strong>clinical supervisor<\/strong>. For home health agencies providing Medicare-reimbursable services, federal certification through the Centers for Medicare and Medicaid Services (CMS) is required in addition to state licensure, a considerably more involved process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senior home care businesses, focused exclusively on older adults, typically operate under the non-medical model and are subject to the same state-level licensing framework. <strong>Requirements vary widely<\/strong>: some states have a streamlined registration process, while others, such as New York, California, and Illinois, impose detailed regulatory reviews with timelines that can extend six to eighteen months.<\/p>\n\n\n<div class=\"lf-gut-blog-post-cta-efference\" style=\"border-color: #fcb900;\"><div class=\"lf-gut-blog-post-cta-efference__icon\" style=\"color: #fcb900;\"><svg class=\"icon-thumb-up\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"35\" height=\"35\" viewBox=\"0 0 48 48\" fill=\"none\" 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17.2897ZM25.9937 14.0848C25.3555 13.8433 24.6881 13.9027 24.1473 14.0902C23.612 14.2757 23.0868 14.6256 22.7523 15.1185L24.4072 16.2415C24.4528 16.1744 24.5875 16.0543 24.8023 15.9799C25.0114 15.9074 25.1841 15.9169 25.2859 15.9554L25.9937 14.0848ZM22.7504 15.1213L18.9104 20.8212L20.5691 21.9387L24.4091 16.2387L22.7504 15.1213ZM15.9998 29.6399V20.48H13.9998V29.6399H15.9998ZM15.9998 20.48C15.9998 20.2144 16.0287 20.0485 16.0604 19.9495C16.0888 19.8605 16.1152 19.837 16.121 19.8316C16.1424 19.812 16.2914 19.7 16.8798 19.7V17.7C16.1482 17.7 15.3571 17.8179 14.7685 18.3583C14.1585 18.9183 13.9998 19.7102 13.9998 20.48H15.9998ZM16.8798 19.7H17.8198V17.7H16.8798V19.7ZM17.8198 19.7C18.3941 19.7 18.5477 19.8104 18.574 19.8344C18.5776 19.8376 18.6998 19.9386 18.6998 20.48H20.6998C20.6998 19.7014 20.532 18.9123 19.9205 18.3556C19.3318 17.8195 18.5455 17.7 17.8198 17.7V19.7ZM18.6998 20.48V29.6399H20.6998V20.48H18.6998ZM18.6998 29.6399C18.6998 30.1755 18.5805 30.2788 18.5752 30.2838C18.5511 30.3061 18.3996 30.4199 17.8198 30.4199V32.4199C18.56 32.4199 19.3484 32.2937 19.9343 31.751C20.539 31.191 20.6998 30.4043 20.6998 29.6399H18.6998ZM17.8198 30.4199H16.8798V32.4199H17.8198V30.4199ZM16.8798 30.4199C16.2914 30.4199 16.1424 30.3079 16.121 30.2883C16.1152 30.2829 16.0888 30.2593 16.0604 30.1704C16.0287 30.0714 15.9998 29.9055 15.9998 29.6399H13.9998C13.9998 30.4097 14.1585 31.2015 14.7685 31.7616C15.3571 32.302 16.1482 32.4199 16.8798 32.4199V30.4199Z\"\/><\/svg><\/div><p class=\"lf-gut-blog-post-cta-efference__title lf-transform-none\">Good to know<\/p><div class=\"lf-gut-blog-post-cta-efference__lede\">\n<div class=\"wp-block-lexpress-highlighted-text-v2 lf-gut-blog-post-cta-efference__lede\">\n<p class=\"wp-block-paragraph\">The licensing timeline for a non-medical home care agency varies considerably by state. States like New York report LHCSA processing times of <strong>6 to 12 months<\/strong>, while other states can complete the review in as few as 60 to 90 days. Researching state-specific timelines before starting the application process is a step most operators address early in planning. (Source: The Business of Senior Care, 2026)<\/p>\n<\/div>\n<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-a45e65c9d0b0ed6e3dd5e02d14543e5b\">8 Steps to Start a Home Care Business<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1 \u2013 Define the Concept and Target Audience<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Home care businesses serve distinct markets, and the scope of services offered shapes every subsequent decision. Common service models include <strong>companion care, personal care assistance (<\/strong>bathing, dressing, grooming), <strong>homemaker services<\/strong> (cleaning, meal preparation), and <strong>skilled home health services<\/strong> (nursing, therapy). Agencies targeting seniors exclusively tend to focus on personal care and companion care, while home health agencies provide medically supervised care requiring licensed clinical staff.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Non-medical home care<\/strong>: personal care, companion care, homemaking, transportation<\/li>\n\n\n\n<li><strong>Home health agency<\/strong>: skilled nursing, physical therapy, occupational therapy, speech therapy, wound care<\/li>\n\n\n\n<li><strong>Senior home care<\/strong>: a subset of non-medical care focused on older adults, often including dementia or Alzheimer&#8217;s care<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2 \u2013 Create a Business Plan<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A <a href=\"https:\/\/lexpress-franchise.com\/en-us\/articles\/how-to-create-a-business-plan\/\">business plan <\/a>is typically the first document requested by lenders, licensing agencies, and investors. For home care businesses, it commonly includes a <strong>market analysis <\/strong>of the local senior population, a <strong>description of target payer sources<\/strong> (private pay, Medicaid, Medicare, or long-term care insurance), a <strong>staffing model<\/strong>, and <strong>projected financial statements covering at least three years<\/strong>. State licensing authorities in several states, including New York, require evidence of financial viability as part of the application package.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3 \u2013 Find a Location<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-medical home care agencies are generally operated from a small administrative office rather than a patient-facing facility, since services are delivered in clients&#8217; homes. Most agencies rent commercial office space to meet state requirements for a physical business address. Location selection is commonly driven by <strong>proximity to the agency&#8217;s target service area, commercial lease costs<\/strong>, and <strong>zoning rules<\/strong>. Some states require the office location to be inspected before a license is granted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4 \u2013 Secure Permits and Licenses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Licensing is among the most complex and time-sensitive steps in opening a home care business. Requirements exist at the federal, state, and sometimes county or municipal level. The process typically involves multiple agencies and documentation submissions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Business formation:<\/strong> Home care agencies are generally formed as LLCs or corporations, registered with the state&#8217;s Secretary of State office. An Employer Identification Number (EIN) is obtained from the IRS for tax and payroll purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>State home care license:<\/strong> In the 47 states plus D.C. that require licensure, the application typically includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Completed state application form with owner and key personnel information<\/li>\n\n\n\n<li>Criminal background checks for all owners, officers, and administrators<\/li>\n\n\n\n<li>Proof of general liability and professional liability insurance<\/li>\n\n\n\n<li>Written policies and procedures covering patient care, infection control, emergency preparedness, and personnel management<\/li>\n\n\n\n<li>Organizational chart and evidence of qualified administrative leadership<\/li>\n\n\n\n<li>Office site inspection (in many states)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Medicare and Medicaid certification:<\/strong> Home health agencies seeking reimbursement from Medicare must obtain <strong>certification through CMS<\/strong>. This process requires a state health department survey and compliance with the Conditions of Participation (CoPs) under 42 CFR Part 484. Some states, such as New York, also require a <strong>Certificate of Need (CON<\/strong>) for Certified Home Health Agencies, a separate regulatory process involving demonstration of community need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Additional permits and registrations:<\/strong> Depending on the state and service type, operators may also need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Medicaid provider enrollment number (obtained through the state Medicaid agency)<\/li>\n\n\n\n<li>Workers&#8217; compensation insurance (mandatory in all states)<\/li>\n\n\n\n<li>A federal Drug-Free Workplace policy (required for Medicaid providers in most states)<\/li>\n\n\n\n<li>HIPAA compliance protocols, including a Privacy Officer designation and staff training<\/li>\n\n\n\n<li>Accreditation from bodies such as ACHC or CHAP (optional for non-medical, often required for Medicare-certified agencies)<\/li>\n<\/ul>\n\n\n<div class=\"lf-gut-blog-post-cta-efference\" style=\"border-color: #fcb900;\"><div class=\"lf-gut-blog-post-cta-efference__icon\" style=\"color: #fcb900;\"><svg class=\"icon-thumb-up\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"35\" height=\"35\" viewBox=\"0 0 48 48\" fill=\"none\" style=\"color: #fcb900;\"><path fill=\"currentColor\" d=\"M21.4998 4.89989L20.8499 4.13985L20.8474 4.14202L21.4998 4.89989ZM26.5397 4.89989L27.1922 4.14197L27.1842 4.13526L26.5397 4.89989ZM29.6998 7.62011L30.3547 6.86441L30.3522 6.86223L29.6998 7.62011ZM40.4197 18.3401L41.1776 17.6877L41.1754 17.6851L40.4197 18.3401ZM43.1398 21.5L43.8998 20.8501L43.8977 20.8476L43.1398 21.5ZM43.1398 26.54L43.8977 27.1924L43.9044 27.1845L43.1398 26.54ZM40.4197 29.6999L41.1754 30.3549L41.1776 30.3523L40.4197 29.6999ZM29.6998 40.4199L30.3521 41.1778L30.3547 41.1756L29.6998 40.4199ZM26.5397 43.1399L27.1896 43.8999L27.1921 43.8978L26.5397 43.1399ZM21.4998 43.1399L20.8474 43.8978L20.8553 43.9045L21.4998 43.1399ZM18.3398 40.4199L17.6849 41.1756L17.6874 41.1778L18.3398 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31.4081 23.7741 31.3401C23.6565 31.3069 23.5592 31.2695 23.4859 31.233C23.4093 31.1948 23.3839 31.1699 23.3869 31.1729L21.9726 32.5871ZM24.4598 33.44H27.9998V31.44H24.4598V33.44ZM27.9998 33.44C28.799 33.44 29.5865 33.1456 30.2139 32.6881C30.842 32.2301 31.3818 31.5549 31.5899 30.7226L29.6496 30.2375C29.5777 30.5252 29.3675 30.83 29.0356 31.072C28.7031 31.3145 28.3205 31.44 27.9998 31.44V33.44ZM31.5701 30.7913L33.8101 23.9512L31.9094 23.3288L29.6694 30.1688L31.5701 30.7913ZM33.8025 23.9735C34.1312 23.0445 34.0165 22.0828 33.4742 21.3419C32.9352 20.6053 32.0571 20.2 31.0798 20.2V22.2C31.5024 22.2 31.7444 22.3647 31.8603 22.5231C31.973 22.6772 32.0483 22.9354 31.917 23.3064L33.8025 23.9735ZM31.0798 20.2H27.3398V22.2H31.0798V20.2ZM27.3398 20.2C27.3373 20.2 27.3416 20.1997 27.3504 20.2035C27.359 20.2074 27.3692 20.2142 27.3782 20.2243C27.3876 20.235 27.3914 20.2444 27.3923 20.2472C27.3932 20.2503 27.3881 20.2367 27.3925 20.2005L25.407 19.9598C25.2548 21.2156 26.1799 22.2 27.3398 22.2V20.2ZM27.3882 20.2317L27.8482 17.2317L25.8713 16.9286L25.4113 19.9286L27.3882 20.2317ZM27.8375 17.2897C28.1304 15.9229 27.2511 14.5031 25.956 14.0714L25.3235 15.9688C25.7084 16.0971 25.949 16.5575 25.8819 16.8706L27.8375 17.2897ZM25.9937 14.0848C25.3555 13.8433 24.6881 13.9027 24.1473 14.0902C23.612 14.2757 23.0868 14.6256 22.7523 15.1185L24.4072 16.2415C24.4528 16.1744 24.5875 16.0543 24.8023 15.9799C25.0114 15.9074 25.1841 15.9169 25.2859 15.9554L25.9937 14.0848ZM22.7504 15.1213L18.9104 20.8212L20.5691 21.9387L24.4091 16.2387L22.7504 15.1213ZM15.9998 29.6399V20.48H13.9998V29.6399H15.9998ZM15.9998 20.48C15.9998 20.2144 16.0287 20.0485 16.0604 19.9495C16.0888 19.8605 16.1152 19.837 16.121 19.8316C16.1424 19.812 16.2914 19.7 16.8798 19.7V17.7C16.1482 17.7 15.3571 17.8179 14.7685 18.3583C14.1585 18.9183 13.9998 19.7102 13.9998 20.48H15.9998ZM16.8798 19.7H17.8198V17.7H16.8798V19.7ZM17.8198 19.7C18.3941 19.7 18.5477 19.8104 18.574 19.8344C18.5776 19.8376 18.6998 19.9386 18.6998 20.48H20.6998C20.6998 19.7014 20.532 18.9123 19.9205 18.3556C19.3318 17.8195 18.5455 17.7 17.8198 17.7V19.7ZM18.6998 20.48V29.6399H20.6998V20.48H18.6998ZM18.6998 29.6399C18.6998 30.1755 18.5805 30.2788 18.5752 30.2838C18.5511 30.3061 18.3996 30.4199 17.8198 30.4199V32.4199C18.56 32.4199 19.3484 32.2937 19.9343 31.751C20.539 31.191 20.6998 30.4043 20.6998 29.6399H18.6998ZM17.8198 30.4199H16.8798V32.4199H17.8198V30.4199ZM16.8798 30.4199C16.2914 30.4199 16.1424 30.3079 16.121 30.2883C16.1152 30.2829 16.0888 30.2593 16.0604 30.1704C16.0287 30.0714 15.9998 29.9055 15.9998 29.6399H13.9998C13.9998 30.4097 14.1585 31.2015 14.7685 31.7616C15.3571 32.302 16.1482 32.4199 16.8798 32.4199V30.4199Z\"\/><\/svg><\/div><p class=\"lf-gut-blog-post-cta-efference__title lf-transform-none\">State regulation spotlight: New York<\/p><div class=\"lf-gut-blog-post-cta-efference__lede\">\n<div class=\"wp-block-lexpress-highlighted-text-v2 lf-gut-blog-post-cta-efference__lede\">\n<p class=\"wp-block-paragraph\">In New York, non-medical home care agencies must obtain a <strong>Licensed Home Care Services Agency (LHCSA)<\/strong> license from the New York State Department of Health (NYSDOH) under <strong>10 NYCRR Part 766<\/strong>. The application requires extensive documentation and currently processes in 6 to 12 months. Home health agencies additionally require Certificate of Need (CON) approval from the Public Health and Health Planning Council, a process that can take 12 to 24 months or more. (Source: NYSDOH; The Business of Senior Care, 2026)<\/p>\n<\/div>\n<\/div><\/div>\n\n\n<h3 class=\"wp-block-heading\">Step 5 \u2013 Procure Equipment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Home care agencies are not equipment-intensive compared to facility-based healthcare businesses. Core operational needs typically include office furniture and computers, scheduling and electronic visit verification (EVV) software (mandatory in most states for Medicaid billing), secure document storage for client and personnel records, and basic caregiver supplies. Medical home health agencies may also supply wound care materials, monitoring devices, or mobility aids depending on their service scope and state requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 6 \u2013 Organize Operations and Hire Staff<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Caregiver recruitment<\/strong> is consistently identified as one of the primary operational challenges in the home care industry. The BLS reports approximately <strong>2.6 million<\/strong> home health and personal care aides are currently employed in the U.S., and a projected shortfall in workforce supply is widely documented across the sector. <strong>State-mandated training requirements<\/strong> for caregivers vary: in New York, for example, home health aides must complete a minimum <strong>75-hour<\/strong> state-approved training program, while personal care aides require <strong>40 hours<\/strong> of training.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Operational staffing for most agencies also includes a <strong>scheduler or care coordinator<\/strong>, an <strong>administrator<\/strong>, and, for agencies providing skilled care, a <strong>Director of Nursing (RN<\/strong>). Background screening through the <strong>state&#8217;s exclusion list<\/strong> and the <strong>federal OIG exclusion database<\/strong> is a standard compliance step for all staff.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 7 \u2013 Launch Marketing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Home care agencies typically build their client base through <strong>referral relationships with hospitals, rehabilitation facilities, physician offices, discharge planners<\/strong>, and <strong>social workers<\/strong>, rather than direct-to-consumer advertising alone. Common marketing activities at launch include developing a professional website, establishing a <strong>Google Business Profile<\/strong>, attending <strong>senior care expos<\/strong>, and <strong>building relationships with local referral sources<\/strong>. For agencies targeting Medicaid clients, <strong>enrollment as a provider<\/strong> with the state&#8217;s managed long-term care (MLTC) plans is often a key marketing and revenue strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 8 \u2013 Open Your Home Care Business<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once licensing is granted, the agency can begin accepting clients and scheduling caregivers. The first months of operations typically involve <strong>establishing billing processes<\/strong> (whether private pay, Medicaid, or insurance), <strong>onboarding initial caregivers<\/strong>, and conducting <strong>quality assurance reviews<\/strong>. Operators commonly address pre-opening preparation, such as policy development and staff recruitment, during the licensing review period to reduce time to first revenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-d0db123f00ce68f4b8de17196a1535b8\">Is It Also Possible to Start a Home Care Business as a Franchise?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The home care sector has a well-developed franchise landscape in the United States, with <a href=\"https:\/\/lexpress-franchise.com\/en-us\/our-franchises\/\">numerous established franchise brands<\/a> operating nationwide. Franchising is a popular option for entrepreneurs entering the industry because it provides access to a recognized brand, proven operational systems, comprehensive training, marketing support, and ongoing guidance from the franchisor. Below are some of the leading home care franchise brands that operate under the <a href=\"https:\/\/lexpress-franchise.com\/en-us\/articles\/what-is-a-franchise\/\">franchise business model<\/a> in the U.S.:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lexpress-franchise.com\/en-us\/franchise\/nurse-next-door\/\"><strong>Nurse Next Door<\/strong><\/a>: a non-medical home care franchise providing senior care, companionship, personal care, and respite services. The brand operates more than 100 franchise locations in the U.S. Initial investment ranges from <strong>$119,286 to $217,210<\/strong>, including a <strong>$72,000 franchise fee<\/strong>. <\/li>\n\n\n\n<li><strong>Comfort Keepers<\/strong>: a non-medical home care franchise with over 600 locations across the U.S. Initial investment ranges from <strong>$119,560 to $190,700<\/strong>, including a franchise fee of $55,000. <\/li>\n\n\n\n<li><strong>Home Instead<\/strong>: a senior care franchise with over 600 U.S. locations. Initial investment ranges from <strong>$98,000 to $125,000<\/strong>, including a $54,000 franchise fee. <\/li>\n\n\n\n<li><strong>Visiting Angels<\/strong>: a non-medical home care franchise operating in hundreds of U.S. markets. Initial investment ranges from <strong>$125,460 to $171,150<\/strong>. The royalty structure is sliding-scale, starting at 3.5%. <\/li>\n\n\n\n<li><strong>Right at Home<\/strong>: a home care and assistance franchise with over 700 locations. Initial investment ranges from <strong>$92,100 to $165,309<\/strong>, including a $50,000 franchise fee. .<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-40be3a97b88a3c291a960319ec216a22\">How Much Will It Cost to Start a Home Care Business in the US in 2026?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Startup costs for a home care agency vary depending on the state, the type of agency (non-medical vs. home health), and whether it is launched independently or as a franchise. The table below provides an estimated breakdown of expenses typically involved in opening an independent non-medical home care agency in the U.S. in 2026.<\/p>\n\n\n\n<table id=\"tablepress-647\" class=\"tablepress tablepress-id-647\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Expense Category<\/th><th class=\"column-2\">Estimated Cost Range<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Business formation and legal fees<\/td><td class=\"column-2\">$3,000 to $8,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">State licensing and application fees<\/td><td class=\"column-2\">$2,000 to $5,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">General liability, professional liability, and workers&#8217; compensation insurance<\/td><td class=\"column-2\">$8,000 to $18,000<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Office space and setup<\/td><td class=\"column-2\">$5,000 to $15,000<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Policies, procedures, and compliance documentation<\/td><td class=\"column-2\">$3,000 to $7,000<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Scheduling and EVV software<\/td><td class=\"column-2\">$2,000 to $6,000<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">Caregiver recruitment, background checks, and training<\/td><td class=\"column-2\">$3,000 to $8,000<\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td class=\"column-1\">Marketing and branding<\/td><td class=\"column-2\">$3,000 to $10,000<\/td>\n<\/tr>\n<tr class=\"row-10\">\n\t<td class=\"column-1\">Working capital reserve (3 to 6 months)<\/td><td class=\"column-2\">$20,000 to $50,000<\/td>\n<\/tr>\n<tr class=\"row-11\">\n\t<td class=\"column-1\">Total estimated range<\/td><td class=\"column-2\">$49,000 to $127,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-647 from cache -->\n\n\n<p class=\"wp-block-paragraph\"><em>Source: The Business of Senior Care (thebizofseniorcare.com), 2026. Figures reflect a non-medical home care agency in a mid-to-high cost state (e.g., New York). Costs may be lower in states with fewer regulatory requirements.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key factors that affect startup costs include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>State of operation<\/strong>: highly regulated states typically involve higher licensing fees, more extensive documentation, and longer timelines before revenue begins<\/li>\n\n\n\n<li><strong>Type of agency<\/strong>: home health agencies (medical) have significantly higher startup costs than non-medical home care agencies, with estimates generally ranging from <strong>$150,000 to $350,000<\/strong><\/li>\n\n\n\n<li><strong>Insurance costs<\/strong>: premiums for professional liability and workers&#8217; compensation insurance vary substantially by state and number of employees<\/li>\n\n\n\n<li><strong>Technology<\/strong>: EVV (Electronic Visit Verification) software is now mandatory in most states for Medicaid-funded services, adding an operational cost not present in purely private-pay agencies<\/li>\n\n\n\n<li><strong>Working capital needs<\/strong>: the time between licensing approval and first invoice payment can span several months, particularly for Medicaid-billing agencies<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The table below compares estimated startup costs between an independent home care agency and a home care franchise in the U.S. in 2026.<\/p>\n\n\n\n<table id=\"tablepress-648\" class=\"tablepress tablepress-id-648\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Cost Component<\/th><th class=\"column-2\">Independent Agency<\/th><th class=\"column-3\">Franchise Agency<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Total initial investment range<\/td><td class=\"column-2\">$40,000 to $127,000<\/td><td class=\"column-3\">$92,000 to $191,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Franchise fee<\/td><td class=\"column-2\">None<\/td><td class=\"column-3\">$50,000 to $90,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Ongoing royalty fees<\/td><td class=\"column-2\">None<\/td><td class=\"column-3\">3.5% to 7% of gross revenue<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Brand recognition<\/td><td class=\"column-2\">Self-built<\/td><td class=\"column-3\">Established brand included<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Operational systems and training<\/td><td class=\"column-2\">Self-developed<\/td><td class=\"column-3\">Provided by franchisor<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Licensing and compliance support<\/td><td class=\"column-2\">Self-managed<\/td><td class=\"column-3\">Typically supported by franchisor<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">Marketing support<\/td><td class=\"column-2\">Self-funded<\/td><td class=\"column-3\">Brand marketing fund contribution required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-648 from cache -->\n\n\n<p class=\"wp-block-paragraph\"><em>Sources: The Business of Senior Care (thebizofseniorcare.com), 2026; 2026 FDD data for Comfort Keepers, Home Instead, Visiting Angels, and Right at Home via Franchise Investor Data (franchiseinvestordata.com). Independent agency range reflects a non-medical home care model.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-12bee7851954a715db20785b9c3cf09c\">The Bottom Line<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Starting a home care business in the U.S. in 2026 requires meeting state-specific licensing requirements, choosing between medical and non-medical services, and building compliant operations. Independent non-medical agencies typically require an initial investment of <strong>$49,000\u2013$127,000<\/strong>, while franchise models involve higher startup costs but provide established systems and brand recognition. With demand for home-based care continuing to grow, the sector offers strong long-term opportunities for new business owners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This content is provided for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations vary by state and individual circumstances and may change over time. Readers should consult a qualified attorney, tax professional, or other licensed professional regarding their specific situation. Nothing herein creates an attorney-client relationship.<\/em><\/p>\n\n\n        <div class=\"lf-gut-faq-block\">\n            \n<div class=\"wp-block-lexpress-faq lf-gut-faq-block\"><span class=\"lf-gut-faq-block__title\" style=\"text-transform:none\">Frequently asked questions about opening a home care business<\/span>\n<div class=\"wp-block-lexpress-faq-item lf-gut-faq-block__item\"><button class=\"lf-gut-faq-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-laj3859j5\">What do I need to start a home care business in the US?<\/button><div class=\"lf-gut-faq-block__answer lf-gut-answer-laj3859j5\">\n<p class=\"wp-block-paragraph\">The requirements vary by state, but generally include forming a business entity (LLC or corporation), obtaining a state home care license or registration, securing general liability and professional liability insurance, passing background checks, and developing written policies and procedures. Home health agencies providing Medicare-covered services also need federal CMS certification. A total of 47 states plus the District of Columbia require some form of licensure for non-medical home care agencies, according to Harbor Compliance.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-item lf-gut-faq-block__item\"><button class=\"lf-gut-faq-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-795jnynph\">How much money do you need to start a home care business?<\/button><div class=\"lf-gut-faq-block__answer lf-gut-answer-795jnynph\">\n<p class=\"wp-block-paragraph\">Startup costs for an independent non-medical home care agency in the U.S. typically range from $49,000 to $127,000, depending on the state and service model, according to The Business of Senior Care (2026). Home health agencies with medical services generally require a higher initial investment, often between $150,000 and $350,000. Franchise models carry an additional upfront franchise fee of $50,000 to $90,000 on top of operational startup costs.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-item lf-gut-faq-block__item\"><button class=\"lf-gut-faq-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-fpb37vggf\">How do I start a non-medical home care business?<\/button><div class=\"lf-gut-faq-block__answer lf-gut-answer-fpb37vggf\">\n<p class=\"wp-block-paragraph\">Opening a non-medical home care business typically involves forming a legal business entity, applying for a state home care license, obtaining required insurance, developing compliant policies and procedures, hiring and training caregivers, and setting up scheduling and billing systems. The process typically takes three to twelve months depending on the state&#8217;s review timeline. Non-medical home care services include personal care, companion care, homemaking, and transportation, and do not require clinical staff such as nurses or therapists.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-item lf-gut-faq-block__item\"><button class=\"lf-gut-faq-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-dj49pg1m9\">How do I start a senior home care business?<\/button><div class=\"lf-gut-faq-block__answer lf-gut-answer-dj49pg1m9\">\n<p class=\"wp-block-paragraph\">A senior home care business generally operates as a non-medical home care agency focused on older adults, providing personal care, companionship, and homemaking services. The licensing and regulatory process follows the same state-level framework as other non-medical home care agencies. Some senior care operators additionally seek specialized training for staff in dementia or Alzheimer&#8217;s care, and several states have specific certifications or training requirements for agencies serving memory care clients.<\/p>\n<\/div><\/div>\n<\/div>\n        <\/div>\n        ","protected":false},"excerpt":{"rendered":"<p>The U.S. home care market reached an estimated $173.6 billion in , according to IBISWorld, driven by an aging population and growing preference for at-home services over institutional care. The Bureau of Labor Statistics projects 22% employment growth for home health and personal care aides through 2032, one of the fastest rates of any occupation. [&hellip;]<\/p>\n","protected":false},"author":788,"featured_media":1803815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"How to Open a Home Care Business in the US in 2026","_seopress_titles_desc":"Starting a home care business in 2026? 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