How to Start a Home Care Agency in Indiana (2026 Guide)
Last updated:
Indiana Licensing at a Glance
- License type: Personal Services Agency license
- Licensing agency: Indiana Department of Health (IDOH)
- Application fee: $250 (Personal Services Agency; per Indiana administrative guidance).
- Estimated timeline: Typically 30–90 days (application + review).
- Estimated startup cost: $35,000 – $65,000 (estimate your own with the startup cost calculator)
- Senior population: 1,100,106 (19.1%)
Insurance Requirements
- General liability: $1,000,000 per occurrence / $3,000,000 aggregate (industry standard; verify if state specifies different).
- Surety bond: Not state-specified for private-pay in most states; if handling client funds/property, consider a dishonesty/fidelity bond (commonly $10,000+) to reduce risk.
- Workers' comp: Required when you have employees (verify state rules; exemptions/thresholds vary).
Unique Indiana Requirements
- Expanded/national criminal history check current within 3 months, lifetime search required for all owners, manager, alternate managers
- PSAs prohibited from using 'HEALTH' or 'NURSING' in name or advertising as home health agency
- Physical location within Indiana required (can be residential)
- Branch offices must be within 120-mile radius of parent
- Document-intensive application—incomplete/improperly formatted policy documents cause delays
- Employees cannot serve as client's guardian, conservator, or POA
- Specific training required for lift services
Insider Tips
- Indianapolis metro has significant demand with reasonable competition
- Lower costs than neighboring Illinois
- Check includes all Indiana counties of residence, other states, U.S. district court records, sex offender registries (all states), multistate criminal database
Common Mistakes to Avoid
- Using 'Health' or 'Nursing' in business name—this is prohibited for PSAs
- Submitting incomplete or improperly formatted policy documents
- Not having employees complete competency evaluation for each attendant care task before unsupervised work
- Opening branch offices beyond 120-mile radius of parent location
Frequently Asked Questions
Do you need a license to start a home care agency in Indiana?
Yes. Indiana requires a Personal Services Agency license issued by Indiana Department of Health (IDOH).
How much does a home care license cost in Indiana?
Application fee: $250 (Personal Services Agency; per Indiana administrative guidance).
How long does it take to get licensed in Indiana?
Estimated timeline: Typically 30–90 days (application + review).
How much does it cost to start a home care agency in Indiana?
Typical startup costs range from $35,000 to $65,000.
Not sure you're ready? Take the free home care agency readiness quiz.