How to start a home care agency in Indiana

How to start a home care agency in Indiana

Indiana's senior population is booming, creating a surge in demand for home care services. Indiana has a growing senior population, with elderly adults (55 and older) being the fastest-growing demographic in central Indiana. In fact, projections suggest that by 2030, one out of every five residents in Indiana will be over 65 years old.[State of Aging, report

Now you might be thinking “What do I need to set up a home care business in the US?”, well don’t worry, you are at the right place! We are here to help you with the process of bringing your home care agency to life. With the right steps and instruction, you can own your home care agency in Indiana. So why waste time? Let’s get right into it and make you a successful home care owner in Indiana!

Step 1: Creating Your Business Plan

The first step to launch your Home Care Business in Indiana is to create a comprehensive business plan. This plan will act as your roadmap to success and will outline your goals, strategies, the type of services you plan to provide, and of course, your budget.

Here's what you should include in your Business Plan:

  • A quick overview of your business- Mission, Vision and what makes your agency unique.
  • Research the home care market in your area
  • Business Structure- Mention the legal structure of your business, whether it’s an LLC or S-Corp.
  • A detailed breakdown of the services you'll offer (e.g., companionship, meal prep, housekeeping).
  • Your marketing strategy to reach potential clients
  • Financial projections to show your forecasted revenue and expenses.

The U.S. Small Business Administration has a fantastic guide to writing a business plan, so be sure to check it out! If you don’t have enough time, or need some assistance with setting up your business plan, then have a look at this pre-made editable template, here.


Step 2: Register Your Business

Now, it’s time to make your Home Care Business official in Indiana. Let’s break down the registration process;

  • Pick a Business Name: This is your brand identity, so choose something memorable, professional, and relevant to home care services.
  • Check Availability: Before registering, verify the name isn't already in use by another business. You can do a business entity search on the Indiana Secretary of State's INBiz website
  • Registering Your Business Name: Once you have a unique name, register it with the Indiana Secretary of State through the INBiz portal to make it official.

Step 3: Obtaining Your Tax ID and EIN Number to Start Your Home Care Business

Think of your tax ID numbers as the green light to operate. Until you’ve got your tax ID numbers, you won’t be able to obtain your agency licenses, hire employees, or sell services.

  • Federal Employer Identification Number (EIN): This unique number identifies your business for tax purposes. Apply for it quickly and easily on the IRS website
  • Indiana Tax Identification Number: Obtain this through INBiz, the state's official business portal. 


Step 4: Insuring Your Home Care Business in Indiana

Having proper insurance is essential to protect your home care business from financial hardship in case of unexpected events. Without proper insurance, your business could be held financially responsible, potentially jeopardizing your entire operation.

Here's good news! The Indiana Department of Insurance offers resources to help you compare plans and choose the right coverage for your specific needs. So, make sure to go through every detail and choose the right plan for your home care agency. 


Step 5: Develop Indiana Home Care Policies and Procedures

Indiana has specific regulations for home care providers. Familiarize yourself well with these rules and regulations by reviewing the Indiana Department of Health website, particularly the Personal Services Agency Statute (IC-16-27-4). 

Your policies and procedures should cover crucial aspects like Caregiver Screening, Supervision and Training, Emergency Response Plan, Client Confidentiality and Complaint Procedures.

Stuck with drafting policies and procedures for your home care agency in Indiana? Don’t worry, we have got something for you! Take a look at this pre-made policy and procedure manual for a home care agency in Indiana, Here


Step 6: Obtaining an Indiana Home Care License

In Indiana, no matter what home care service you plan to provide, you will need to get a license before you start serving clients. Let’s take a look at the main types of licenses the state of Indiana provides:

  • Personal Services Agency License: This License allows you to provide non-medical care services such as Attendant care services, homemaker services (including housekeeping, shopping, laundry, meal planning and preparation, and cleaning) and Companion services such as fellowship, care and transportation. Apply by submitting the Application for License to Operate a Personal Services Agency to the Indiana Department of Health. Make sure to include your detailed policies and procedures in the application.
  • Home Health Agency License: If you plan to offer medical care services such as nursing services, physical therapy, occupational therapy, medical social worker, home health aide, and other medical/therapeutic services, you'll need this additional license of home health agency.

Before applying for your license, make sure you understand what kind of care services you provide and if it makes you a home health business or a non-medical home care business in Indiana.


Step 7: Hire Staff

Your home care agency is only as strong as the team behind it.  Since clients often require continuous support, having a reliable and skilled staff is paramount. As your client base grows, you can expand your team to meet their needs and potentially offer a wider range of services.  Before recruiting, make sure you have a solid financial plan, proper insurance coverage, and a well-structured training program in place.  By attracting and retaining top talent, you'll be well on your way to delivering exceptional care.


Step 8: Promote Your Home Health Care Agency

In today's digital age, a strong online presence is essential for every business. Here are key strategies to promote your home care agency:

  • Develop a User-Friendly Website: Create a website that showcases your services, team, and testimonials. Make sure it's easy to navigate and accessible on all devices.
  • Engage on social media: Build engaging social media profiles to connect with potential clients and share valuable content related to senior care.
  • Network and Collaborate: Connect with local healthcare providers, attend industry events, and participate in community activities to raise awareness about your agency.
  • The Power of Referrals: Encourage satisfied clients to recommend your services to others. Build strong referral relationships with healthcare professionals.

By following these steps, you'll be well on your way to establishing a thriving home care business in Indiana, providing high-quality care, and making a positive difference in the lives of others.


Indiana's growing senior population presents a tremendous opportunity for passionate and dedicated individuals to launch a successful home care business.  With a well-crafted business plan, a commitment to compliance, and a team of compassionate caregivers, you can build a rewarding venture that provides essential services and improves the lives of those in need.

So, are you ready to become a home care owner in Indiana? Reach out to us for any questions or assistance in launching your home care business in Indiana, here.

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