What Type of Business is a Non-Medical Home Care?

A non-medical home care company is a healthcare service business that offers assistance with daily tasks to sustain living and socialization for elderly and disabled people. Their services might involve aiding with daily shopping, house cleaning, bathing, cooking, and transportation.

Non-medical care may also include companionship and supervision. Assistance with medication is an area that coddles the line between medical and non-medical care. The services offered by non-medical home care businesses play a very important role in assisting seniors to live an easier life, allowing them to enjoy the rest of their life in the comfort of their own homes.

Although this type of service and care might be temporary, such as during recovery from an illness or injury, it can also be indefinite due to the natural process of aging. Most times, without Non-medical care assistance, these seniors might need to move in with a family member or relocate to an assisted living residence.

Have it in mind that this type of care is most times provided by friends, spouses, and other family members. However, there is still a whole industry of dedicated private caregivers and even public employees who offer these services, mainly on an hourly basis. Although a good number of people believe that non-medical care can only be provided at home, howbeit some facilities like adult day care offer nonmedical care assistance during daytime hours.

Also, note that assisted living communities act as live-in residences that provide 24-hour non-medical care to the elderly and disabled. Non-medical care can also be offered in skilled nursing homes, although the line between medical and non-medical care is often grey at that level. Medication reminders for taking pills are considered non-medical, but medication administration, by nebulizer or with hypodermic needles, for example, is more or less medical care.

According to reports, a non-medical home care business generates income by offering the necessary assistance clients need to live safely at home. These caregivers are mostly paid by the hour and are engaged with for weeks or months at a time. Unlike other home health providers, who tend to earn through insurance companies, most non-medical care providers are paid by families directly.

In the United States, these businesses charge an hourly rate of $15-$27. Note that the exact amount will vary depending on your location and the services offered. A caregiver contracted to assist with bathing, cooking, and housework will notably charge more than a caregiver hired to keep clients company or transport clients to appointments. Owing to that, non-medical home care businesses earn around $40,000 to $56,000 annually.

Steps to Start a Non-Medical Home Care Business

First, you have to understand that some states in the United States mandate non-medical caregivers to have background checks and licenses, while many other states do not. Even in states that have regulations, caregivers often work privately and receive payment under the table. To properly start a non-medical home care business in the United States, here are steps to consider;

1. Establish a Business Entity

The first step when starting a non-medical home care business in the United States is to create a business entity. There are numerous types of business structures in the United States: ‌Sole Proprietorship, ‌Partnership, ‌Corporation, ‌and‌ ‌Limited-Liability‌ ‌Company‌ (LLC). However, have it in mind that the type of business you form will always determine how much tax you pay, the sort of organizational structure your business will have, and the personal obligations you take up as a result.

2. Obtain an Employer ID Number (EIN)

In the United States, an Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number given by the Internal Revenue Service (IRS) to business entities operating in the United States for identification purposes.

An EIN is also required when opening a business bank account. Businesses in the United States can easily request an EIN by filling out the IRS’s online form. In addition, also note that your EIN is for federal taxes—but you’ll have state and local tax obligations too. This might involve setting up an account with the state’s Department of Revenue, and you may need to apply for a state tax ID or a sales tax license as well.

3. Register with the Secretary of State

This will vary depending on your business location and the business structure you choose. Most times, registering your business can be as simple as filing your business name with state and local governments. Nonetheless, it is advisable you visit the Secretary of State’s website in your area for business name availability, and also check if the domain name is available for your website. Once your business name and entity are approved, you can then go ahead and get it printed on your company vehicle, business cards, and business cards.

4. Get Adequate Funding

The cost of starting a non-medical home care business can be low; though they might stretch into the thousands depending on your state’s licensing requirements. Many states require you to obtain a license to provide care at clients’ homes, even if it’s non-medical. Licenses and certifications aside, you may have to get a reliable mode of transportation.

Without a reliable mode of transportation, it can be quite tough to succeed in this business, as you can be tasked with running errands and driving your clients to appointments. Normally, starting a well grounded non-medical home care business will cost around $50,000 – $75,000.  However, you can fund your business by seeking a personal loan, applying for a personal grant, or fund yourself to get started.

5. Create Internal Policies and Procedures

Lots of things are involved with starting and managing a successful non-medical home care business. Owing to that, it’s important to put your company’s internal policies and procedures in a written document, especially if you’re starting your business with others. Partnerships always have partnership agreements. LLCs come with operating agreements. Corporations have bylaws.

Note that these documents and their content will vary for each kind of business, but they serve more or less the same aim. They establish a clear path of handling any critical issue that may arise, from changes in ownership to closing the business. In addition, LLCs and corporations are expected to present an operating agreement or bylaws in order to open a bank account.

6. Open a Bank Account

Even though this might not be necessary, it helps to keep your personal finances separate from your business finances. For LLCs and corporations, doing this is very vital for maintaining liability protection. To open an account, LLCs and corporations more or less need to provide g to the bank a copy of their articles, their operating agreement or bylaws, and their EIN.

7. Acquire Required Licenses and Permits

Almost every business in the United States needs some sort of business license to operate. Licensing information— coupled with any zoning requirements or other permits—can easily be assessed on the city or county website. However, note that Requirements for non-medical home care licensing will vary from state to state.

In the United States, everything is varied, from the name of the service, to the cost of licensing, to the time it takes to obtain a license. For instance, a good number of states even place moratoriums on home care licenses from time to time. Staying current and knowing the demands of your state will be imperative in order to get your business up and running in a legal and timely manner.

8. Get Business Insurance

Even though business structures like LLCs and corporations protect you from personal liability, you don’t want your business to go bankrupt in the face of an accident, injury, or other disasters. Basically, it is vital to consider general liability insurance.

For your non-medical home care business, it is also ideal to look into Errors and Omissions insurance. Note that it will safeguard you against claims concerning inadequate or negligent work. For instance, a client can choose to sue you if they get injured while you help them bathe. E&O insurance costs most small businesses around $500 and $1,000 a year.

Conclusion

Agreeably, providing non-medical care lets people live in the comfort of their homes for longer than they otherwise would’ve, it can also put them in a vulnerable and challenging state. Have it in mind that no one likes admitting that they need outside help to do things they used to handle themselves, or those family members used to help them with. Empathy will be your superpower when it comes to being good at this job.