Most people think of nurses and other health professionals when it comes to home care and helping people around the house as they get older. While there are certainly nurses and other medical professionals who help with home care, it's important to note that this doesn't have to be medical work.
In fact, the nonmedical home care industry is expected to grow in 2024, and it's a business you can start with very little overhead. This makes nonmedical home care an appealing venture in Virginia, and it's worth considering if you want to start a business in 2024.
That said, learning how to start a nonmedical home care business isn't always easy. You need to fill out the right application, get a business license, formulate a plan, and even find the right insurance for your business. While this can all seem overwhelming at first, don't worry because we're here to help. Read on to learn more below.
How to Start a Nonmedical Home Care Business in Virginia
Step 1: Create a Business Plan for Your Nonmedical Home Care Business
Step 2: Form a Legal Entity
Step 3: Choose a Registered Agent in Virginia
Step 4: Apply for Your Business License
Step 5: Apply for the Necessary Insurance
Step 6: Create Your Policies and Contacts
Step 7: Start Helping Clients
Contents
Thinking about starting an LLC in Virginia? We’ve got all the details you need.
Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the Virginia State Corporation Commission, which includes a $100 processing fee.
You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized Virginia LLC formation service (recommended).
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What Is a Nonmedical Home Care Business?
A nonmedical home care business is exactly what it sounds like. It’s a home care business that doesn’t involve any medical attention or care. This means that you can help people move around their homes, move furniture, fix meals, and perform other tasks that aren’t based on administering medications.
That said, medical professionals can be home care employees, and many medical professionals do this type of work part-time to make some extra money.
What Services Does a Nonmedical Home Care Business Offer?
Several services are offered by nonmedical home care companies. Ultimately, services are based on helping people maintain a healthy lifestyle. Home care professionals will also help clients complete daily tasks or get around in their homes.
Some of the most common services offered by a nonmedical home care business include:
- Helping someone move around the house
- Ensuring that clients get all of their meals
- Assistance with getting items around the house or help with taking medications at a specific time
- Housekeeping
- Meal preparation
- Meal delivery
- Assistance with getting clothed
- Bathing clients who can’t do so themselves
Depending on the type of nonmedical home care business, these services can change.
An Industry Analysis of the Nonmedical Home Care Business in Virginia
You may be asking “Is home care business profitable in USA?” Luckily, the answer is yes! Nonmedical home care is a profitable industry in Virginia and across the rest of the United States. What makes the venture profitable is the low overhead and the increased need for nonmedical home care after the COVID-19 pandemic.
According to IBISWorld, the industry is expected to grow by 3-4% each year with high estimates claiming that the industry can grow by up to 4-8% in 2024.
Digital technology and tools have also made it easier for people to get started in the industry. This is because apps or websites can help you connect with clients or even send out independent contractors who are certified and licensed home care providers.
When it comes to profit, that ultimately comes down to what you want to charge. That said, several sources have found that the home care industry has a gross profit margin of more than 30%.
How Much Does It Cost to Start a Nonmedical Home Care Business?
The cost to start a nonmedical home care business varies based on how you want to operate. If this is something you plan on doing as freelance work for a few people, you don’t have to worry about a high cost.
On the other hand, if you want to open a nonmedical home care agency, the price goes from a few thousand dollars to upwards of $40,000. In fact, some agencies will cost you upwards of $80,000 to open in Virginia.
What makes the cost expensive are the tools you need to provide home care. It might not seem like much, but you need vehicles, tools to help people with their work, employees to hire, and software to coordinate and schedule home care work.
In Virginia, you also need to pay for a business license, which can cost you several hundred dollars depending on the scale of your business as well as its location. Plus, you’ll need a license for each city you plan on working in.
For these reasons, the cost comes down to the type of nonmedical home care business you want to start.
How to Start a Nonmedical Home Care Business in Virginia
Want to start a nonmedical home care business in Virginia? The process is easy as long as you follow all of the steps we provide below. Plus, the hardest part is simply getting started. Read on to learn more about each part of the process.
If you’ve already completed some of these steps, feel free to skip ahead until you reach the part of the process you’re currently in.
Step 1: Create a Business Plan for Your Nonmedical Home Care Business
Business plans are essential if you want to start a business. It’s important to create a detailed plan that includes information about the entirety of your business. For example, you want to outline your revenue projections, marketing, and even the structure of your company.
It’s also wise to add key details about your day-to-day operations so that you know what to expect.
Some other things to include in a business plan for nonmedical home care businesses are:
- Executive Summary
- Names of people who own the company
- Employees you’ll be starting with
- Marketing plans and marketing materials
- The market you serve by caring for
- Regions you plan on working in
- Equipment you need
- The types of vehicles you’ll use for transportation
- The structure of your business
Depending on the type of nonmedical home care business, you might want to include more information. That said, this is a good start.
Step 2: Form a Legal Entity
The next part of the process is to form a legal entity. You need to create a structure for your company and submit the necessary paperwork before you even apply for your licenses or insurance.
A nonmedical home care business can be any entity, but it’s best to opt for a limited liability company (LLC). We recommend an LLC because it protects you from any potential lawsuits and keeps your finances separate from the company.
Still, you can choose to create a DBA (doing business as), sole proprietorship, partnership, or even a corporation if it suits your needs. If you need any additional help to start a nonmedical home care business in Virginia, we also have you covered.
Step 3: Choose a Registered Agent in Virginia
If you’ve decided to structure your business as an LLC or corporation in Virginia, the next important step is to appoint a registered agent. This is a required step when drafting your Articles of Organization, the document needed to officially file and register your LLC or corporation with the State Corporation Commission.
So, what does a registered agent do? A registered agent is an individual or business entity responsible for receiving essential documents on behalf of your business, such as tax forms, legal notices, lawsuits, and official government correspondence. In short, your registered agent acts as your business’s main point of contact with the state.
Who can be a registered agent? The registered agent must be a Virginia resident or a corporation authorized to do business in the state, such as a registered agent service. If you want to serve as your own registered agent, you must designate an individual within your company, as Virginia law prohibits business entities from serving as their own registered agents.
For more specific details on the requirements for registered agents in Virginia, refer to Chapter 12, Article 3 of the Code of Virginia.
Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).
Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.
Step 4: Apply for Your Business License
If you want to start a nonmedical home care business, you need a license. In fact, you may need a license in more than one area if you plan on working in multiple locations.
You don’t have to go to extreme lengths to get the necessary medical equipment licenses for medical home care companies. You’ll just need to apply for a Virginia home care organization license and pay the necessary application fees.
The application for home care organization licensure in Virginia is simple to fill out, and you don’t have to worry about too many complex forms. However, you need to make sure you get the right license.
Additionally, you need to meet the appropriate requirements if you want to be granted a nonmedical home care license in Virginia. These requirements include:
- A completed home care license application
- A written outline and statement of your knowledge about how to care for people
- The organizational chart for your company
- Information about the owner and other employees of the company
- Your company’s policies and procedures
You also need to pay a fee when you send in your application. Licenses for this type of work also need to be renewed every year, or you run the risk of getting into penalties and fees.
Step 5: Apply for the Necessary Insurance
Nonmedical home care businesses also need insurance. You need to apply for the appropriate insurance for your business if you want to avoid any problems.
For example, if someone gets hurt or your equipment gets damaged, you can file an insurance claim to ensure that you don’t lose any money or value. Insurance can also serve as another layer of protection for your LLC in the event of a lawsuit.
There are plenty of business insurance options available in Virginia, and you can shop around between different providers as well. That said, make sure you at least get some type of liability coverage to protect you in the event of a lawsuit or other issues. We also recommend insurance for the vehicles that your staff members are driving.
Step 6: Create Your Policies and Contacts
Next, it’s time to focus on your company’s policies. If you’re going into people’s homes in Virginia you need to have the proper protections in place to avoid lawsuits and other legal problems.
Therefore, it’s a good idea to come up with a contract that your clients have to sign in order for you to work with them before you open your business. We do recommend working with a lawyer to avoid any problems.
Some examples of things to include in your contract are:
- The services that you provide
- The scope of what your caregivers can offer and what they can’t help with
- What happens in the event of a medical emergency
- How food is delivered or prepared
- The time and days that you will arrive at someone’s home to care for them
- Policies for changing caregivers
We always recommend using a contact to reduce the risk of liability. With the proper insurance in place, an LLC, and a strong contract, you shouldn’t have to worry.
Step 7: Start Helping Clients
The last step is to open your doors and begin helping clients. We recommend launching with a marketing plan in mind and you should have some type of website that clients can view and contact you through.
Some nonmedical home care start-up packages can make this process easier by offering you services and software that help clients connect with your business.
We also recommend marketing and hiring a team unless you plan on going to this alone. When it comes to your team, it’s a good idea to have a bookkeeper and someone who can coordinate the calls and care needs of clients and caregivers. This should be enough to get you started.
We also recommend starting small if this venture is new to you. In fact, you can even start as an independent contractor.
Nonmedical Home Care Business FAQ
If you have any more questions about starting a nonmedical home care business, we likely have the answers you’re seeking below.
How Do I Become a Home Healthcare Provider in Virgina?
Home health care providers are a bit different from nonmedical aides and must meet several different requirements. If you want to expand your business into this field, it’s a great way to expand your revenue without having to open up a second company. That said, there are some more requirements you need to meet.
These requirements include:
- Passing a criminal background check that looks into your criminal history and verifies your record
- Get listed on the Virginia Nurse Aide Registry
- Submit your application fee, which is $500
- Provide a written statement that outlines and highlights your experience in home care programs or situations
- Submit a proposed organizational chart
- Have a driver’s license
- Have reliable transportation or a vehicle
- Provide full name and references
Unlike a nonmedical home care business, if you go this route, you must also meet national standards that go beyond what Virginia requires. You must meet all of the training criteria for competency and have trained for at least 75 hours. What’s more, you must also have 16 hours of hands-on experience.
Do I Need a Certificate of Training to Get a Home Health Care License in Virginia?
No, you don’t need any training certificates to get a home care license in Virginia. However, you will need to be competent and able to care for your clients, or you can lose your license.
You also need to be familiar with any policies and laws surrounding nonmedical home care. As long as you know this information and provide proper training to your staff and yourself, you shouldn’t encounter any problems. Still, make sure you understand the risks when getting started to avoid any problems.
Can Nonmedical Home Care Businesses Get Paid Through Medicaid?
No, only licensed medical care companies can be paid through Medicaid. This is because Medicaid is medical insurance, which means that the person you’re caring for must have a medical condition that you’re helping with.
If you’re just helping around the house or helping them stay fed, this is not considered something that Medicaid pays for. Instead, payments for nonmedical home care businesses receive payment through private payroll systems.
Can Nonmedical Home Care Businesses Get Paid Through Medicare?
No, Medicare does not pay for nonmedical home care. It’s the same situation as Medicaid and most types of medical insurance. This is because nonmedical home care is not medical, so there is no need for a health insurance company to pay for the services.
Nonmedical home care companies can’t apply medications or help people with specific conditions, so you have to take payments privately.
Can Nonmedical Home Care Businesses Get Paid Through Private Insurance?
No, not really. In some rare cases, it might be possible for an insurance provider to cover the cost of home care. However, if it’s not a medical issue, the chances of having an insurance company pay for the service are low.
That said, in some rare cases, insurance companies might see nonmedical home care as preventative care and cover some of the costs. Still, most clients or the family of the client have to use private pay options.
What Does a Nonmedical Home Care Start Up Package Look Like?
Start up packages for nonmedical home care businesses are usually software packages. These are packages that supply your company with what you need to connect your caregivers to your clients.
While you can do this without a start up package, it’s better to use one if you don’t plan on building out a website or software yourself. Expect most start up packages to cost you around $2,000 to $6,000.
Start a Nonmedical Home Care Business in Virginia Today!
Nonmedical home care businesses have been around for a long time, and they have become a viable alternative to medical home care business models. They cost less money to start, it’s easier to find qualified workers, and you don’t have to worry about any medical licenses.
While it may be easier to get going, you should still approach the business with care and do your best to provide the best care possible for your clients.
That said, what are you waiting for? Follow our steps for how to start a nonmedical home care business in Virginia and get started today!