How to Start a Home Health Care Business in Michigan

health message image by gajatz from Fotolia.com

A home health-care business is a highly lucrative one because a large portion of the population, the baby boomers, are reaching retirement age and this creates a steady stream of potential clients. In Michigan, a set of guidelines exist for you to start a home health-care business. Private Duty Today says the process of starting a home-health care business in Michigan is easier than the process that exists in other states, primarily because a special license is not required.

Name the business. Pick one, two or three names for the business. The two additional names can be backups for your first choice option if a business in the state is already operating under that name.

Establish a business structure for the home health-care business. You have the options of registering the business as a sole proprietorship, limited liability company, partnership or corporation. You may want to speak with a tax professional and/or legal professional before settling on any one business structure. Since home health care has some liability issues associated with operating it, you may want to take added measures to protect yourself and your business—and certain business structures can accommodate this better than others.

Register the business name with the state. Contact the secretary of state for Michigan. Tell the person who answers the phone the type of business structure you are registering and they will provide you with the form you must complete and any subsequent documents or paperwork you must supply to complete the business registration.

Register for state taxes. You need to register the business with the state of Michigan tax entity for tax withholding purposes. Since a home health-care business requires nurse, health-care professionals and administrative staff to run, hiring employees also entails withholding taxes from their paychecks. This is handled by the Michigan Department of Treasury, which you can contact by phone at 517-636-4660.

Apply for an EIN (Employer Identification Number) with the IRS. Contact the IRS by calling 1-800-829-4933 or downloading the SS-4 Form online at the IRS website..

Hire employees. Place job ads for nurses, home health-care aides, administrative staff and any other employees you may need to operate the business. Gather resumes, conduct interviews and choose a candidate for each position.

Obtain workmen’s compensation insurance. Contact a business insurance agent licensed to sell insurance in Michigan to establish a workmen’s compensation policy to cover each of your employees.

Promote the business to doctors, hospitals and other medical professionals. Contact doctor offices and hospitals to promote your home health-care business. Follow up your conversation by emailing or mailing a company brochure and contact information. You may want to send a small stack or brochures for the doctor or hospital to place in their waiting room.

Tips

  • The state of Michigan does not have a license requirement to operate a home health-care business, so this eliminates the step of obtaining a business license that is a requirement in most states.

References

Resources

About the Author

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.

Photo Credits