How to Start an Assisted Living Facility in Virginia: DSS License, $250,000 to $1 Million Liability

Starting an assisted living facility in Virginia is a licensing project before it is a real estate project. The Department of Social Services (DSS) decides whether you can operate. The Board of Long-Term Care Administrators decides who can run the facility in some cases. Your local zoning office decides whether the building can be used for this purpose at all. If you sequence those three correctly, the rest of the work is manageable. If you sign a lease or buy a building first, you can end up with a property you cannot use for what you bought it for.

This guide covers the Virginia rules for an assisted living facility (ALF), the administrator requirements, insurance minimums, fees, and the setup work that comes before opening. Many operators also look at adult day care, so a short section on that is included at the end.

What an assisted living facility is and who licenses it

Under Virginia law, an assisted living facility is a congregate residential setting that provides 24-hour supervision for four or more adults who are aged, infirm or disabled (Va. Code 63.2-100). Congregate means residents share the building and common areas. The four-adult threshold is the point where the facility definition applies, so a home with two or three residents is treated differently from one with four or more receiving supervised care.

The Department of Social Services licenses assisted living facilities. Every person who operates one must obtain a license from the Commissioner of Social Services (Va. Code 63.2-1701). The operating standards are in 22VAC40-73, so read that chapter before you design your floor plan or hire staff.

Virginia recognizes two levels of care. Choose yours early, because it determines which administrator track applies to you:

• Residential living care provides minimal help with activities of daily living.
• Assisted living care provides at least moderate help with activities of daily living.

Materials and information to gather first

• A specific property address and a written zoning determination from the locality
• Your legal entity name and, if you form an LLC, the Articles of Organization (Form LLC1011)
• Resumes and credential records for the owner, the administrator, and any administrator-in-training
• Records showing training completed or scheduled through DSS or an approved program
• A working automated external defibrillator (AED) and records showing staff trained to use it
• A liability insurance quote at the per-occurrence limit that matches your planned capacity
• Floor plans and a capacity plan that sets your maximum resident count
• A budget covering build out, furnishings, insurance, licensing fees, payroll, and working capital

Step 1: Understand the facility license and pre-licensing requirements

Every ALF license has a term of up to three years. The Commissioner sets the term at six months, one year, two years or three years based on your compliance history. The license also states the maximum number of residents you may serve, so your capacity plan and your license must match.

Before an initial license or a renewal, the facility must have a working AED and staff trained to use it (Va. Code 63.2-1701 B). Plan for this in your build budget and your staff training schedule, not as an afterthought.

A new owner or administrator must also complete training from the Department or an approved program before an initial license is issued, unless the person is experienced. The rule has conditions that depend on experience, so read 22VAC40-73-40 directly rather than relying on a summary.

Step 2: Choose the right administrator track

Virginia uses two administrator tracks under 22VAC40-73-140. Which one applies depends on your level of care, not on your preference.

Track 1: residential living care. A facility licensed only for residential living care may use an administrator who is not state licensed if that person:

• Is at least 21 years old
• Has a high school diploma or GED
• Has 30 semester hours of education, with the regulation setting how business or human services coursework, an approved course, or a bachelor's degree counts toward that total. Read 22VAC40-73-140 for how these combine.
• Has at least one year of supervisory experience in adult group care
• Completes 20 hours of training

Track 2: assisted living care. A facility licensed for assisted living care needs a licensed assisted living facility administrator from the Board of Long-Term Care Administrators, which sits within the Department of Health Professions (18VAC95-30). The Board's fees are:

Board of Long-Term Care Administrators item	Fee
License application	$315
Annual renewal	$315
Late renewal	$110
Reinstatement	$435
Administrator-in-training program application	$215

(18VAC95-30-40)

Renewal is annual, not every two years. Each renewal requires 20 hours of continuing education, including 2 hours on cognitive impairment or dementia. The first renewal is exempt from the continuing education requirement.

There are several pathways into the license. One common route is the national examination plus an administrator-in-training program of 320 to 640 hours, with the length depending on your prior education and licensure. Read the Board's regulation for the path that fits your background before you enroll in anything.

Step 3: Buy liability insurance at the right limit

Virginia sets minimum per-occurrence liability limits by resident count (22VAC40-73-45):

Residents	Minimum per occurrence
25 or fewer	$250,000
26 to 75	$400,000
76 to 150	$500,000
151 or more	$1,000,000

Quote the insurance at your planned maximum resident count, not your opening count. If you plan 30 residents, you need the $400,000 tier from day one. Ask your broker to confirm how the aggregate limit applies to your policy, because the per-occurrence minimum is only part of your exposure.

Step 4: Plan for the DSS fee and the certificate of public need question

The DSS licensing fee is based on capacity and billed annually (22VAC40-160-10). The State Board has signaled an increase, so the figure you see in older materials may be out of date. Check the current fee table with DSS before you build your budget. DSS publishes the current fee schedule, so get the per-bed figure from the agency.

You do not need a certificate of public need for an assisted living facility. Virginia's certificate of public need law (Va. Code 32.1-102.1:3) covers hospitals, nursing homes and certain other facilities, not assisted living.

Step 5: Handle real estate and zoning first

Real estate and zoning come before the entity, staffing, and financing, because they determine whether the project can happen in the building you want.

A group home of eight or fewer residents counts as a single family for zoning purposes (Va. Code 15.2-2291 B). Larger homes face local zoning review. Get the zoning answer in writing from the locality before you sign a lease or purchase agreement. Note that the single-family treatment is a zoning rule. It does not exempt you from DSS licensing.

Next, confirm your local business license obligation. Virginia has no general statewide business license, and the State Corporation Commission issues none. The business license is the Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 and following. It is a local tax administered by each city, county or town, usually through the Commissioner of the Revenue.

Not every locality levies a general BPOL. Under Va. Code 58.1-3704, a locality may levy none. Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna are examples of localities without a general county license, and towns can displace the county tax. Population sets a floor on what a locality can require. A locality over 50,000 people cannot require a license for gross receipts under $100,000. Localities of 25,000 to 50,000 people cannot require one for gross receipts under $50,000, and no floor applies under 25,000 people. Localities over 50,000 may waive the license up to $200,000 in gross receipts (verify the current waiver ceiling with your Commissioner of the Revenue). Localities set their own rates and deadlines, so ask your local office for both.

Step 6: Form the entity and reserve the name

Most operators form a Virginia LLC. The Articles of Organization (Form LLC1011) cost $100 and are filed online through the SCC Clerk's Information System at https://cis.scc.virginia.gov/. Virginia LLCs file no annual report. Instead, they pay a $50 annual registration fee to the SCC. The fee is due the last day of the 12th month after the month the LLC was organized, then every year. A late payment adds a $25 penalty, and the LLC is canceled at the end of the third month after the due date.

Your name must include "limited company," "limited liability company," "LC," "L.C.," "LLC" or "L.L.C." and must be distinguishable from names already on file. You can reserve a name for $10 for 120 days. If you plan to operate under a different name, file an Assumed Name Certificate with the SCC for $10. Assumed names are not filed with the circuit court.

Expedited online filing is available: next day for $50 or $100 (submitted by 2:00 PM Eastern, response by 4:00 PM the next business day), or same day for $200 (submitted by 10:00 AM Eastern, response by 4:00 PM). Expedited service is nonrefundable.

Your LLC needs a registered agent who is a Virginia resident with a Virginia street registered office, available during business hours. The agent must be a member of the Virginia State Bar, or a member, manager, officer, trustee or general partner of the entity. An entity cannot serve as its own agent.

Step 7: Plan staffing and renovation costs

Minimum wage in Virginia is $12.77 in 2026, $13.75 in 2027 and $15.00 in 2028. Build those steps into your payroll model now, because caregiver wages are the largest recurring cost in most facilities and every raise changes your margin.

If you hire a contractor for renovation, confirm the contractor's license class with the Department of Professional and Occupational Regulation. Since July 1, 2025, Class C covers contracts over $1,000 to under $30,000, Class B covers $30,000 to under $150,000, and Class A covers $150,000 or more. Virginia has no statewide food handler card, but a Certified Food Protection Manager is required in food establishments. Ask your local health district whether your kitchen falls under that requirement.

For financing, talk to a lender with health care experience before you sign a purchase contract. The SBA Richmond District office (https://www.sba.gov/district/richmond) and the Virginia Small Business Development Center network (https://www.virginiasbdc.org/) both offer free or low-cost guidance on loan packages and business plans.

Adult day care: a short section

Adult day centers serving four or more adults for part of a day are licensed by DSS under 22VAC40-61. A program operated only for PACE participants is exempt. Adult day care has its own regulation and its own license, so do not assume your ALF license covers a day program in the same building. Confirm the scope of each license with DSS before you open either one.

Common mistakes to avoid

• Signing a lease before zoning is confirmed. A verbal "should be fine" from a planner is not a determination.
• Picking residential living care to avoid a licensed administrator while providing assisted living care. Your administrator track follows the level of care you actually provide.
• Insuring at the opening census instead of planned capacity. A higher resident count moves you into a higher insurance tier.
• Budgeting from an old DSS fee figure. Check the current fee table with DSS.
• Treating the eight-resident zoning rule as a licensing exemption. The zoning treatment and the DSS license are separate questions.
• Missing the LLC registration fee deadline. The $50 fee has a $25 penalty and a cancellation risk if it is late.
• Looking for a statewide business license. Your business license obligation is local, and it depends on your locality and your gross receipts.

Expected results

Completing these steps in order may help you prepare a complete DSS application and avoid the most common delays. It does not guarantee a license, a zoning approval, occupancy, or profit. DSS makes its licensing decision based on its own review. Occupancy and revenue depend on local demand, your care model, your staffing, and your management. No figure in this guide predicts your results.

Where to confirm current requirements

• Department of Social Services, for facility licensing, training, and fees: https://www.dss.virginia.gov/
• Department of Health Professions, for the Board of Long-Term Care Administrators: https://www.dhp.virginia.gov/
• State Corporation Commission, for entity filings and the $50 annual registration fee: https://www.scc.virginia.gov/businesses/
• Your locality's Commissioner of the Revenue and zoning office, for BPOL and zoning

This article is informational content, not legal or tax advice. Virginia rules, fees, and deadlines change, so confirm current requirements with the agencies named above before you spend money or sign documents. An assisted living facility involves licensing, zoning, insurance, employment, and tax questions that depend on your specific facts. Consult a Virginia attorney experienced in health care licensing and a CPA before you commit to a property or entity structure.