(425) 900-5999 
Home Care License in California
Start Your Home Care Agency in California
As a nonprofit, we keep licensing simple, compliant, and cost-effective. With AI-powered document prep and review, Consult Atlas Foundation reduces errors and speeds up approval—so you can open with confidence.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
WyomingWelcome
Please select a state to see licensing details here.
End-to-End Licensing for California Home Care Providers
Welcome
Please select a license type to view details.
Step-by-Step Licensing Process
Why California Wins for Home Care Startups
Launch your home care agency with AI-driven accuracy and nonprofit support, built to eliminate errors, expedite approvals, and reduce startup costs. With one of the nation’s largest and fastest-growing 65+ populations, California offers a powerful combination of demand, flexibility (HCO and HHA pathways), and long-term growth potential. Here’s why it’s the best time to start a new venture in California.
High Demand
California’s older-adult population is surging. By 2040, about 22% of Californians will be 65+ (up from 14% in 2020)—driving sustained demand for home- and community-based care statewide.
Flexible Service Model
California supports both non-medical Home Care Organizations (HCOs) and skilled Home Health Agencies (HHAs). HCOs provide personal care, companion and homemaker services with registered Home Care Aides; HHAs provide skilled nursing/therapy under CDPH licensure. This lets you tailor offerings to client needs and payers.
Professional Support
Launching a home care business is complex—policies, staffing, surveys, and payer readiness. Consult Atlas Foundation guides every step with nonprofit pricing and AI checks across compliance, manuals, training, and inspection prep (HCO & HHA).
Licensing Requirements
HCO (CDSS/HCSB): State 2-year license fee: $5,603. Each aide must be on the Home Care Aide Registry ($35/2 years) with background clearance via Guardian/Live Scan. Maintain $1M/$3M liability, workers’ comp, and a $10,000 employee dishonesty bond. TB exam: within 90 days before hire or 7 days after, then every 2 years if negative. Keep documentation on file.
HHA (CDPH/Licensing & Certification): State HHA license via the CDPH Initial Application Packet; FY 2025–26 fee schedule in effect. Requires Administrator + Director of Patient Care Services (RN), Title 22-aligned clinical policies, and survey readiness; Medicare certification is optional post-license.
Room to Grow
Despite California’s size, demand growth outpaces supply as the 65+ population expands; industry benchmarking shows California is not saturated relative to its senior population, leaving space for capable new providers to enter and scale.
Starting a home care agency in California is an excellent opportunity to make a positive impact on the lives of others while also generating income. If you want to learn more about how to start a home care agency in CA, don’t hesitate to get in touch with us for a free consultation.
How Much Does It Cost to Start My Home Care Business in California?
Starting a home care agency (HCO) in California — and, if you choose, a skilled Home Health Agency (HHA) — takes upfront setup plus ongoing compliance. Use these updated benchmarks to budget smartly:
- Home Care Organization (HCO) license (CDSS): $5,603 for a 2-year license. Home Care Aide (HCA) registration for each caregiver: $35 for 2 years.
- Required coverages for HCOs (by law): at least $1M/$3M general & professional liability, workers’ comp, and a $10,000 employee dishonesty bond. (Bond premiums typically ~$100–$150/year; varies by credit.)
- Optional/Skilled route — HHA license (CDPH): $2,946 statewide facility fee for FY 2025–26 (L.A. County facilities add a supplemental fee).
- California LLC filing (Articles of Organization): $70 (Secretary of State).
- California LLC annual franchise tax: $800 per year (the first-year waiver expired; now due in year one).
- State tax registration (CDTFA seller’s permit, if you sell taxable goods/DME): $0.
- Federal EIN (IRS): $0 (never pay a third party).
- City of Los Angeles Business Tax Registration Certificate (TRC): required; certificate itself no fee, but you must file/pay gross-receipts business tax unless you qualify for the Small Business Exemption (≤$100,000 worldwide receipts, file by Feb 28, 2025). Costs vary by activity and revenue.
- County business licenses: Some unincorporated areas require separate county licensing with fees set by category.
- General liability often runs ~$500–$1,600/year for small businesses; home-care E&O/professional liability adds to that. Your total will vary by headcount, limits, and claims history.
- Workers’ compensation depends on payroll and class codes; budget alongside California’s rising healthcare-worker wage floors over the decade.
- $10,000 employee dishonesty bond (HCO requirement): commonly ~$100–$150/year.
- Registered Nurse (RN) pay in CA: Recent sources show ~$60–$66/hour averages (≈$125k–$138k/year), highest in the U.S.; your local rate may vary by metro.
- Home care aides must be on the HCA Registry (2-year, $35) and pass Live Scan; plan TB screening timing and file retention.
- Office rent (1,000 sq ft, full-service gross): depends heavily on submarket:– Inland Empire ~ $2.2k/mo, Los Angeles ~ $3.6–$3.9k/mo, Silicon Valley ~ $5.6k/mo (based on current average asking rents $2.17–$5.61/sf/month).
- Marketing (launch): expect a practical range from a few hundred to several thousand per month (mix of local SEO, GBP, referral outreach, and targeted ads). National small-business data puts general liability around $40–$100+/mo; treat that as a proxy for budget sizing.
- Hospital beds (purchase): commonly $500–$5,000+ depending on features; renting and refurbished options can lower upfront costs.
- Manual wheelchairs: typically $100–$500 for standard models; higher for lightweight or specialty builds.
Client Success Story
A License, A Dream, and a New Beginning in Virginia
From Compassion to Career: Regina Mwangi’s Journey to Launching Her Home Care Agency in Washington
My Journey to Building My Healthcare Venture
Frequently Asked Questions
Yes. Non-medical home care businesses must be licensed as a Home Care Organization (HCO) by the California Department of Social Services (CDSS) – Home Care Services Branch. Caregivers must be registered Home Care Aides (HCAs).
An HCO provides non-medical services (ADLs, companionship, homemaker, respite) using registered HCAs. A Home Health Agency (HHA) provides skilled care (e.g., RN, PT/OT/ST, MSW) and is licensed by the California Department of Public Health (CDPH). Many startups begin as HCOs and add HHA later.
- Valid HCO license (2-year term)
- Caregivers on the HCA Registry with Live Scan background clearance
- TB screening/clearance kept on file for aides
- Insurance and bond: $1M/$3M liability, workers’ comp, and $10,000 employee dishonesty bond
- Written policies & procedures and inspection-ready records
- HCO (2-year license): $5,603
- HCA Registry (per aide, 2 years): $35
- HHA initial state fee (optional skilled route): $2,946 (statewide; some counties add small supplemental fees)
Timelines vary based on packet completeness and state volume. With a complete, compliant application, most delays come from missing documents. We reduce back-and-forth by pre-checking every form and attachment.
Active license posting, insurance/bond proof, caregiver files (registry, background/TB, training), client agreements/care plans, incident reporting, and required policies. Keep files current and organized.
No. HCOs provide non-medical services and do not require an RN. If you plan skilled services, you’ll need an HHA with an Administrator and a Director of Patient Care Services (RN).
Your HCO license is statewide, but you must follow all applicable local business rules (city/county registrations, taxes) and maintain compliant staffing, supervision, and records wherever you serve clients.
Each aide must: complete HCA registration, pass a Live Scan background check, meet TB requirements, and be associated with your HCO. Keep proof of registry/clearance and training in each personnel file.
Aides need TB clearance within the state’s required time window (pre-hire/shortly after hire per statute) and periodic follow-up if negative. Keep the clearance/medical evaluation on file.
California law requires at least $1M per occurrence / $3M aggregate general & professional liability, workers’ compensation, and an employee dishonesty bond of $10,000 for HCOs. Bring current certificates to licensing/inspections.
Most agencies maintain a small administrative office for records, hiring, and supervision. Choose a location zoned for business and keep protected records secure. Client services occur in the client’s home.
No. Medicare/Medi-Cal reimbursement is for skilled home health and related programs. If you want to serve Medicare patients, you’ll pursue HHA licensure first, then Medicare certification. Private-pay and long-term care insurance are common for HCOs.
Renew your HCO license and HCAs on time, keep insurance/bond current, maintain personnel/client files, update policies, complete required notices, and prepare for unannounced inspections.
Plan for: state fees (HCO $5,603 + $35 per aide), insurance/bond, entity & annual franchise tax, Live Scan/TB, basic office costs, and initial marketing. If pursuing HHA, add the $2,946 CDPH fee plus clinical manuals and survey prep.
Yes. We prepare your complete HCO/HHA application packet, write California-compliant policies, set up Guardian/HCA registry workflows, organize inspection binders, and (for HHA) build Title-22 clinical manuals and survey readiness—end-to-end, AI-assisted, nonprofit-priced.
We’re here to help you!
Consult Atlas Foundation is a non-profit consulting company that aims to solve the healthcare crisis by helping people like you start their own home care or home healthcare agencies. We provide you with everything you need to succeed, from business planning and licensing to training and marketing. We also offer ongoing support and guidance to help you grow and thrive in this rewarding and profitable field.
By starting your own home care or home healthcare agency, you can:
- Provide essential services to seniors, disabled, and chronically ill individuals who need assistance with daily living activities.
- Create jobs and opportunities for caregivers and nurses who share your passion and vision.
- Generate income and profits that you can reinvest in your business or donate to a cause of your choice.
- Make a positive impact on your community and the healthcare system.
