Do you need a license to run a home care agency in California?

Yes. California requires a state license to run a non-medical home care agency: the Home Care Organization (HCO) license, issued by the California Department of Social Services, Community Care Licensing Division, Home Care Services Branch. Under the Home Care Services Consumer Protection Act, organizations providing non-medical home care through affiliated home care aides must hold a Home Care Organization license from CDSS (required since January 2016). Applicants need liability insurance, workers' compensation, an employee dishonesty bond, a background check, and a department orientation. Licenses are renewed every two years.

What are the key facts?

How do you get licensed in California?

1. Submit a complete application with the license fee
2. Show liability insurance of at least $1,000,000 per occurrence and $3,000,000 aggregate
3. Show workers' compensation coverage for affiliated aides
4. Show an employee dishonesty bond of at least $10,000
5. Pass the background examination and complete the CDSS orientation

What should you confirm with the state?

Starting January 1, 2027, SB 412 adds dementia care training before providing care and annually; confirm with the Home Care Services Branch whether this changes the required training hours. Aides must also show they are free of active tuberculosis.

What should you budget for?

The license fee is a small part of startup cost. Insurance, payroll for your first caregivers before clients pay, and office staff usually cost far more. Use the bill rate calculator to check your pricing covers it, and the intake form and care plan templates for the paperwork inspectors ask to see.