What is Needed to Start a Home Health Business?

by Mary Jane; Updated September 26, 2017

A home health business offers helpful services for needing people, especially the elderly. The home health business owner can go to the patient’s home and provide services. Starting a home health business is a demanding task, as legal registration and permits for running the business are required. The owner also needs to plan out the services that are offered by the home health business for needing patients or the elderly.

Business Registrations

The home health business needs to be registered to be a legally operating business in the United States. According to Business.gov, each state has a set of requirements or rules regarding business registration. While some states require all businesses to be registered with the secretary of state in the given state, others ask that smaller businesses be registered on a county level rather than state. Register the home health business on the level required by the state laws in the given state.

Permits and Licenses

Permits and licenses are required for a home health business. The permits and license requirements will differ for each state, so contact the secretary of state to get the proper list for the given state. For instance, a home health business in Florida requires home health care Medicaid enrollment, a medical care license and must be registered with the Florida Agency for Health Care Administration. The business also requires local permits, which can include a health permit from the county’s health department and an occupational permit from the county’s building and planning department.

Tax ID and EINs

A home health business also needs to apply for tax IDs and licenses. Contact the IRS to apply for an employer ID number, also known as an EIN. The IRS has an online application system that allows business owners to obtain an EIN fast and effectively. The business owner also needs a state tax permit, which can be obtained from the secretary of state’s office upon registration. The state tax permit covers income taxes and employment taxes for the business should it require additional assistance.

Office and Communications

Having an office is another thing the home health care business owner may need. The business office has a computer, telephone, e-mailing system, fax machine and patient files so the patients or elderly can contact the home health care during opening hours. The office is also where the business owner spends time organizing the budget, creating service plans and prepares for visits that must be made for the following day or week on the road.

About the Author

Based in Toronto, Mary Jane has been writing for online magazines and databases since 2002. Her articles have appeared on the Simon & Schuster website and she received an editor's choice award in 2009. She holds a Master of Arts in psychology of language use from the University of Copenhagen in Denmark.