General
Home Care Agency Startup Costs: A Line-by-Line Budget
What it costs to open a non-medical home care agency: real state license fees, insurance minimums, office, hiring, software and the working capital most owners underestimate.
How much does it cost to start a home care agency in your state?
Pick your state and payer mix, then adjust the size of your opening. The estimate adds your state's license fee and bond to the line-by-line budget from our startup costs guide.
Last reviewed October 17, 2026
Estimated cash needed to open in Ohio
$30,460 to $46,120
| Item | Estimate | Basis |
|---|---|---|
| State license and application | $250 | $250 initial, $250 renewal |
| Business formation | $100 to $800 | |
| Surety bond premium | $200 to $600 | 1 to 3 percent of the $20,000 bond. |
| Liability insurance, first year | $3,000 to $10,000 | Workers' comp is on top, based on payroll. |
| Office | $0 | Working from home. |
| Policies and procedures | $0 to $3,000 | |
| Background checks and drug tests | $240 to $800 | $30 to $100 for each of 8 hires. |
| Software | $398 | Caregiver Scheduling: $199/month for up to 10 caregivers, or $299/month for up to 50, first 30 days free. |
| Marketing to start | $1,000 to $5,000 | |
| Working capital (payroll before collections) | $25,272 | $4,212 a week in payroll for 6 weeks. |
Where do the numbers come from?
The license fee and surety bond come from our state licensing dataset, which links each state's own rule. The other lines are the estimates in our line-by-line startup budget: they assume a single-location agency opening with 5 to 10 caregivers. Working capital is clients × hours × wage, plus payroll burden, for the number of weeks before collections catch up.
Which states charge the most to license?
These are initial license fees from each state's published rule or fee page, as of October 2026.
| State | Initial fee | Fee as published |
|---|---|---|
| California | $5,603 | $5,603 per 2-year license |
| Washington | $5,000 | $5,000 initial (12-month) license per service category; 24-month renewal from $2,400 to $3,700 by FTE count ($1,700 to $2,600 reduced rate) |
| Texas | $2,625 | $2,625 initial; renewal $2,625 for a three-year license or $1,750 for a two-year license |
| Minnesota | $2,100 | $2,100 initial (basic); annual renewal $231 to $7,651 based on prior-year home care revenue |
| New York | $2,000 | $2,000 application fee |
| Virginia | $1,500 | $1,500 per initial or renewal application |
| Nevada | $1,374 | $1,374 initial, $687 renewal |
| Oklahoma | $1,000 | $1,000 initial, $500 renewal (home care agency and companion/sitter service) |
| South Carolina | $1,000 | $1,000 initial, $800 annual renewal |
| North Carolina | $510 | $510 per year (nonrefundable) |
| Kentucky | $500 | $500 initial, $350 annual recertification |
| Maine | $500 | $500 initial; renewal $200 (1-5 employees), $500 (6-10), $1,000 (11-20), $1,500 (21-50), $2,000 (51+) |
| New Jersey | $500 | $500 per year for each primary location |
| Connecticut | $375 | $375 application, $375 annual renewal |
| Indiana | $250 | $250 initial, $250 renewal (non-refundable) |
| Kansas | $250 | Supportive care only: $250 initial ($500 if 100+ clients); $100 renewal ($350 if 100+ clients) |
| Ohio | $250 | $250 initial, $250 renewal |
| Pennsylvania | $100 | $100 initial, $100 renewal |
| Florida | $50 | $50 per biennium |
States without a figure above either don't license non-medical agencies, publish tiered fees, or don't publish a fee. Check the licensing lookup for your state.
How Caregiver Scheduling handles this
One subscription covers scheduling, routes and GPS check-in, with timesheets, QuickBooks payroll export and private-pay invoicing coming soon, so the software line is one number. $199/month for up to 10 caregivers or $299/month for up to 50, free for 30 days, so you can set it up during licensing. See pricing.
Sources
Frequently asked questions
Most independent agencies need $30,000 to $100,000, mostly for working capital.
Payroll before collections. Insurance is usually second.
From $100 in Pennsylvania to $5,603 in California; Texas is $2,625 and Washington $5,000.
Caregivers are paid weekly from day one and clients pay later. Private-pay clients pay after the care; long-term care insurers and Medicaid can take 30 to 90 days, so the estimator funds 6 weeks of payroll for private pay and 13 weeks for Medicaid or insurance.
Related guides
General
How to Start a Non-Medical Home Care Agency: Step by Step
Ten steps to open a non-medical home care agency, from services and state licensing to insurance, hiring, payers, systems and first clients, with real fees.
General
Non-Medical Home Care Business Plan Template
A fill-in home care business plan: the eight SBA sections mapped to home care, sourced market numbers, and a 12-month financial model.
Operations
Home Care Agency Insurance: Which Policies You Need
Home care agencies need general and professional liability, workers' comp, non-owned auto, a fidelity bond and cyber cover. What states require, with minimums.
General
Home Care Franchise vs. Starting Independent
A home care franchise costs a $40,000 to $60,000 fee plus 5% to 6% of revenue. Independent keeps every dollar but builds everything. How to decide.
Compliance
How Long Does It Take to Get a Home Care License?
Plan on 2 to 6 months in most licensing states. Statutory review clocks are 60 to 90 days, but they start only when your application is complete.
These free tools are made by the team behind Caregiver Scheduling, caregiver scheduling software for home care agencies.
Simple pricing
From $199 /month
Up to 10 caregivers on Starter, 50 on Growth.
More than 50 caregivers? We'll put together a custom Scale plan for your agency.