In Colorado, non-medical home care agencies are regulated by the Colorado Department of Public Health and Environment (CDPHE). These agencies are classified based on the services they provide:​

• Class A License: For agencies providing skilled healthcare services.​ Colorado Secretary of State

• Class B License: For agencies offering only personal care services, such as assistance with daily living activities, housekeeping, and companionship.​

For a non-medical home care agency, you will need to obtain a Class B License. Detailed regulations governing home care agencies can be found in the 

2. Choose a Business Structure

Select a legal structure for your agency, such as a Limited Liability Company (LLC) or Corporation, to provide liability protection and operational flexibility.​

Steps:

• Register with the Colorado Secretary of State: File the necessary formation documents.​

• **Obtain an Employer Identification Number (EIN): Apply through the IRS for tax purposes.

3. Register for Tax IDs

Ensure compliance with tax obligations by obtaining the appropriate identification numbers.​

Steps:

• Federal EIN: Apply via the IRS.​

• State Tax Registration: Register with the Colorado Department of Revenue for state tax responsibilities.​

4. Apply for a Class B Home Care Agency License

To legally operate a non-medical home care agency in Colorado, you must obtain a Class B License from the CDPHE.​

Process:

• Application Submission: Complete and submit the application form available on the CDPHE website.​

• Documentation: Provide required documents, including:​

  • Policies and Procedures Manual: Detailing agency operations.​

  • Staff Qualifications: Evidence of appropriate training and credentials.​

  • Proof of Insurance: Liability and workers’ compensation coverage.​

  • Background Checks: Criminal history records for all staff.​

  • Emergency Preparedness Plans: Protocols for various emergencies.​

• Fees: Pay the applicable licensing fees as specified by the CDPHE.​ CHAP​

5. Develop Your Policies and Procedures

Create comprehensive policies and procedures to guide your agency’s operations and ensure compliance with state regulations.​

Key Components:

• Admission/Discharge Policies: Criteria for accepting and releasing clients.​

• Caregiver Qualifications and Supervision: Standards for hiring and overseeing staff.​

• Infection Control: Protocols to prevent and manage infections.​

• Abuse Reporting: Procedures for identifying and reporting abuse.​

• Complaint Resolution: Processes for addressing client grievances.​

6. Hire and Train Staff

Recruit qualified personnel and provide necessary training to ensure high-quality care.​

Requirements:

• Age: Staff must be at least 18 years old.​

• Training: Colorado mandates a minimum of 20 hours of training for non-medical home care aides, covering areas such as infection control, client safety, and basic caregiving skills.​

• Background Checks: Conduct thorough criminal background checks.​

• References: Obtain and verify professional references.​

7. Obtain Insurance

Protect your agency by securing appropriate insurance coverage.​

Types of Insurance:

• General Liability Insurance: Covers claims of bodily injury or property damage.​

• Workers’ Compensation Insurance: Provides benefits to employees injured on the job.​

• Professional Liability Insurance: Optional but recommended to cover claims related to professional services.​

8. Set Up Office and Begin Marketing

Establish your business presence and attract clients through effective marketing strategies.​

Steps:

• Office Setup: Secure a physical or virtual office space equipped to manage operations. **It can be in your home**​

• Branding: Develop a professional brand, including a logo and marketing materials.​

• Online Presence: Create a user-friendly website and maintain active social media profiles.​

• Networking: Build relationships with local healthcare providers and community organizations.​

• Advertising: Utilize local media, online advertising, and community events to promote your service

Your home can be your office for a Class B non-medical home care agency, as long as you meet the following conditions: