Costs are Estimated
As of 3/11/2019. See fee schedule on DSS website for current application Fee. Link below.
Insurance Costs Estimates:
Note: Will be based on a percentage of Salaries and Wages. The amount will change
Employee dishonesty bond including third-party coverage, with a minimum limit of ten thousand dollars ($10,000)
General and professional liability insurance in the amount of at least one million dollars ($1,000,000) per occurrence and three million dollars ($3,000,000) in the aggregate;
1 Caregiver Aide ($50.00 per)
Fingerprinting ( Administrator and Designee $50/each)
Home Care Registry ($35 per)
Total Application Cost (Estimated)
Other required Costs:
Policy and Procedure:
There are many documents required during your application. Some of these include policies and procedure. The associated costs can vary greatly. If you hire a consultant, make sure they have their own policy and procedures for use on the application.
Other Suggested Costs
An office is not necessary to get apply for a Home Care Organization License. Applicants can operate out of a home.
Of course it is important to have marketing materials however it is not mandatory. This includes business cards, a logo, brochures, and website.
Having a contract is key for every client. Not just to outline the expectations and costs of service; but also to specify consequences if the client hires the caregiver.
If you have a few hundred hours a week and are a sole proprietorship, you may be able to get away with simply writing invoices in something like Microsoft word.
There are any companies that help with the processing of payroll for usually a fixed monthly fee and/or a percentage of total payroll.
Scheduling software: If you only have a few caregivers, you can get away with not having scheduling software but at some point you need to graduate from a booklet or spreadsheet to a fully-fledged home care scheduling software. These programs can be quite expensive so make sure you take the time to properly research the many options you have. Five full time employees can have more than 100 shifts a month.
You can get a license as a sole proprietorship. It’s easier and faster than a corporation. Even if you do apply as a sole proprietorship, you should reserve your name (Fictitious Business Name) with the city you operate out of. However in the long run, you should change your company to an LLC or some other corporation for the sake of taxes and liability.
Insurance companies can transfer insurance coverage as long as the ownership stays the same. Also the state (DSS) for a fee will transfer the license over to the newly founded corporation if the owners are the same.
There are many basic HR costs. Many specific to Home care including, home care training and finger printing. Many are simply the process of hiring such as getting an I-9. Caregivers cannot be hired as an independent contractor. They must be employees under your company.
Any other questions feel free to comment below or even call the state at (877) 424-5778.
Title 22 Code for Home Care Services in California
Application License instructions for Home Care Organization License