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How to Start a Non-Medical Home Care Business

Non-medical home care helps older adults and people with disabilities with daily tasks — companionship, meals, errands and personal care. Demand is growing, but this is a regulated, trust-based business: many states license home care agencies, and hiring and screening caregivers is the core of the work.

Reviewed November 5, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a non-medical home care cost worksheet →

SBA 7(a) loans in this industry

Services for the Elderly and Persons with Disabilities (NAICS 624120): 566 loans approved in FY2024–FY2026. Median loan $151,450; middle half $100,000–$500,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Services for the Elderly and Persons with Disabilities (NAICS 624120)

Nationwide: 40,265 employer establishments (2023) and 202,887 businesses without employees (2024).

The count of businesses without employees is for the broader Census group “Individual and Family Services” (NAICS 6241), so it includes related businesses, not only this one.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Scheduling and electronic visit tracking software
  • Care plan and documentation forms
  • Training materials
  • Phone system for 24/7 contact
  • Secure records storage

Licenses and registration

  • Many states license home care agencies, and rules differ between non-medical care and home health (medical) care — start with your state's health department.
  • Expect background checks and training requirements for caregivers if your state licenses this work.
  • Accepting Medicaid or other public programs usually requires separate enrollment and extra requirements.
  • Set up payroll before hiring — most home care businesses use employees, not contractors — and register an LLC or trade name if you use one.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General and professional liability
  • Abuse and molestation coverage
  • Non-owned auto for caregivers who drive clients
  • Workers' compensation
  • Fidelity bond (protects clients against theft)

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Caregiver wages and payroll taxes
  • Insurance
  • Scheduling software
  • Training
  • Background checks
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • Starting before checking state licensing
  • Classifying caregivers as contractors
  • Underpricing visits after wages and overtime
  • No backup caregiver plan
  • Weak documentation of care

Finding customers

  • Hospital and rehab discharge planners
  • Senior centers and Area Agencies on Aging
  • Elder-law attorneys and financial planners
  • Google Business Profile with reviews

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources