How to Start a Home Care Agency in Texas: Non-Medical Personal Assistance Services

If you want to know how to start a home care agency in Texas, the work breaks into two tracks. The first is ordinary business formation: choosing an entity, filing with the Texas Secretary of State, and setting up tax accounts. The second is licensing: a non-medical home care agency is licensed by the Texas Health and Human Services Commission (HHSC) as a Home and Community Support Services Agency (HCSSA) in the Personal Assistance Services (PAS) category. This guide covers both tracks in the order most owners find easiest to manage. It also explains how to start a home care business in Texas that serves private-pay clients now and may take on Medicaid waiver work later.

Disclaimer: This article is informational content, not legal or tax advice. Licensing rules, fees, and enrollment steps change. Confirm every figure with the agency named before you spend money, and talk with a Texas attorney and a CPA before you choose a structure or sign client contracts.

What You Need Before You Start

• A written plan that defines your service area, the non-medical services you will provide, your target clients, and your staffing model
• A name you want to use, checked for availability with the Texas Secretary of State
• A Texas registered agent with a physical street address in Texas
• Enough cash for state fees: $300 for an LLC Certificate of Formation and $2,625 for the initial 3-year HHSC license for a parent agency or branch, plus any name reservation, expedite, or assumed-name fees
• An administrator and an alternate administrator, both of whom must complete HHSC presurvey training
• Access to SOSDirect, the Texas Comptroller website, and TULIP, the HHSC online system used for licensing applications
• Draft versions of your client service agreement, employee handbook, policies, and care documentation forms
• Quotes from an insurance agent for business coverage

Step 1: Choose Your Business Structure

Your structure determines your paperwork, your liability exposure, and what HHSC will accept as the licensed entity. Ask HHSC which entity types it accepts for the license and what documents it needs to see before you commit to one.

A sole proprietorship is the simplest option. If you operate under a name other than your own, you file an assumed name certificate with the county clerk in each county where you conduct business. County clerk fees vary by county. Texas counties license nothing else for this purpose.

Most agency owners choose a limited liability company (LLC) because it separates the business from your personal assets. The Certificate of Formation (Form 205) costs $300. A corporation files a Certificate of Formation (Form 201), also at $300. Texas has no personal income tax and no corporate income tax. Instead, businesses pay the state franchise tax, covered in Step 4.

Ask an attorney and a CPA which structure fits your plans for ownership, investors, and future growth before you file.

Step 2: Check and Reserve Your Name

An LLC name must be distinguishable from every existing filing entity, name reservation, or registration on the Secretary of State records. It must include an organizational designation such as Limited Liability Company, LLC, L.L.C., Limited Company, LC, or L.C. It also cannot imply a purpose the company is not authorized to pursue, and it cannot falsely suggest an affiliation with a government entity.

Search the records at the Texas Secretary of State business search. For a preliminary availability check, call (512) 463-5555. If you need time to finish your paperwork, file a name reservation for $40. It holds the name for 120 days. The form is available at the Secretary of State website.

Choose a name that matches the non-medical services you actually provide. Words that suggest skilled nursing can confuse clients, referral sources, and HHSC reviewers, and they can create problems if you later add services under a different license.

Step 3: File the Certificate of Formation

File through SOSDirect, the Secretary of State online portal, at direct.sos.state.tx.us. The filing fee for the LLC Certificate of Formation is $300. Electronic filing is the fastest route. Mailed or hand-delivered documents must first be entered, and they show a status of Received for at least one business day.

The Secretary of State does not publish a guaranteed standard turnaround. If you need a guaranteed date, use the paid Texas Express expedite options. Standard Expedite is $50 per document and is typically processed within two to three business days. Next Day Expedite is $500 per document and requires filing by 12:00 p.m. Same Day Expedite is $750 per document and also requires filing by 12:00 p.m. These fees come on top of the filing fee.

Your filing must name a registered agent. The agent must be a Texas resident individual or a qualified entity, the company cannot serve as its own agent, and the registered office must be a physical Texas street address where the agent can be personally served during business hours. A post office box, mail forwarding service, or answering service alone does not meet the requirement. Changing the agent or office later costs $15.

If you use a trade name that differs from your legal name, file an assumed name certificate (Form 503) with the Secretary of State for $25. LLCs and corporations file it there, not with the county clerk.

Step 4: Set Up Your Tax Accounts

Texas levies no state income tax and no corporate income tax. The state's main business tax is the franchise tax, administered by the Texas Comptroller of Public Accounts at comptroller.texas.gov/taxes.

For the 2026 and 2027 report years, the no tax due threshold is $2,650,000 in total revenue. An entity at or below that amount owes no franchise tax, but it must still file a Public Information Report (PIR) with the Comptroller by May 15 each year. The PIR is filed with the Comptroller, not the Secretary of State, and there is no Secretary of State annual report fee. Above the threshold, the rate is 0.375 percent for retail and wholesale businesses and 0.75 percent for all other entities. A 0.331 percent EZ Computation rate applies to entities with less than $20 million in total revenue. Home care agencies generally fall outside the retail and wholesale categories, but confirm with the Comptroller which rate and computation method apply to you.

Next, check with the Comptroller whether you need a sales and use tax permit. The permit is issued at no charge and typically takes two to three weeks to process. Whether your services are taxable depends on what you sell and how you bill, so confirm this before you open for business.

Finally, register as an employer with the Texas Workforce Commission and set up federal payroll accounts with the IRS. Ask your CPA which employer registrations and payroll filings apply to your staffing model, including whether caregivers are employees or independent contractors.

Step 5: Apply for the HHSC Home and Community Support Services Agency License

Non-medical home care in Texas falls under Texas Health and Safety Code chapter 142 and 26 Texas Administrative Code chapter 558. HHSC lists Personal Assistance Services as its own license category, so select PAS when you apply. Visit the HHSC website and search for Home and Community Support Services Agency licensing to find the current application packet.

Before you apply, the administrator and the alternate administrator must each complete the HHSC presurvey training. The applicant must apply through TULIP. The entity, its administrator, and its alternate must be in good standing with the Texas Comptroller and the Secretary of State. If you are not in good standing on either side, the application will stall, so check both accounts before submitting.

The initial license fee for a parent agency or branch is $2,625 for a 3-year license, according to the HHSC HCSSA page as of 2026. Confirm this amount on the HHSC site at the time you apply, because fee schedules change.

HHSC has up to 45 days to process a complete application. The clock depends on a complete application, so an application with missing documents will not move forward on the same timeline. Ask HHSC what inspection, survey, or onboarding steps follow approval before you schedule clients or caregivers.

Also confirm that PAS fits your services. Skilled nursing and other medical care fall under different licensing categories. If your plans include those services, ask HHSC which license you need before you file.

Step 6: Decide Whether to Pursue Medicaid Waiver Work

Many agency owners start with private-pay clients because it keeps the first phase of the business simple. If you want to serve Medicaid waiver clients, such as those in STAR+PLUS home and community-based services (HCBS) or the Community-Based Alternatives (CBA) program, expect separate steps. Waiver work requires a contract or enrollment through HHSC or the managed care organizations (MCOs) that administer these programs.

The current provider enrollment steps and requirements can change. Contact HHSC and each MCO in your service area to confirm what they require, what documents they need, and how long enrollment takes before you plan your revenue around waiver clients.

Step 7: Build a Hiring and Background Check Process

Your caregivers are your largest compliance risk. Before you hire anyone, check with HHSC for the current rules on the Employee Misconduct Registry and background checks. Do not extend an offer or allow a caregiver to start until you know exactly what checks are required and how to complete them.

Review 26 TAC chapter 558 for the training, supervision, and personnel record requirements that apply to PAS agencies. Keep a personnel file for every employee that includes application records, background check results, training certificates, and any notes on registry checks. Build the same checklist for every hire so that you can show HHSC a consistent process.

Step 8: Put Your Contracts, Insurance, and Records in Place

A client service agreement should define the non-medical services you provide, what you do not provide, how you bill, how clients give notice, and how disputes are handled. Have an attorney review it, because the terms affect your liability and your ability to enforce payment.

Ask an insurance agent to quote general liability coverage and the other business coverage your attorney and CPA recommend. Confirm which policies your caregivers and your clients will expect you to carry. Do not begin serving clients until the coverage is bound.

Build your care documentation and record-keeping system before the first client starts. HHSC will expect your policies and records to match what you actually do in the field.

Step 9: Check Local Requirements

Texas does not issue or require a general state business license. Counties license nothing beyond the assumed name filing for sole proprietors. Cities may have their own rules on signage, zoning for an office, or permits, so call the city permit office where your office will be located. The Texas Business Licenses and Permits Guide, published by the Business Permit Office within the Texas Economic Development and Tourism Office, is the state's reference for identifying the licenses that apply to your activity.

Tips and Common Mistakes to Avoid

• Forming the company before you clear the name. A name conflict can cost you a rebrand after you have printed signs and contracts. Check availability first, and reserve the name if you need time.
• Treating the $300 as the whole cost. Add the HHSC license fee, name reservation, expedite fees, assumed name fees, insurance, and any local permits to your startup budget.
• Using a mailbox as the registered office. A post office box or mail forwarding address does not satisfy the physical street address requirement.
• Naming the company as its own registered agent. The entity cannot serve as its own agent.
• Forgetting the May 15 PIR. An entity under the $2,650,000 threshold owes no franchise tax but still files the Public Information Report with the Comptroller by May 15.
• Letting the 120-day name reservation lapse. If you reserve a name and do not file within 120 days, the reservation expires.
• Submitting an incomplete TULIP application. The 45-day processing window applies to a complete application, so missing items cost you time.
• Letting a good standing lapse. The administrator, alternate, and entity must remain in good standing with the Comptroller and the Secretary of State.
• Hiring before you check the registry. Verify the Employee Misconduct Registry and background check requirements with HHSC before a caregiver starts work.
• Promising medical services under a non-medical license. Confirm your license category matches what your staff will actually do.

Expected Results

A properly prepared application may move through each stage without major delays, but the timing depends on your agency's completeness, state workload, and your own follow-up. Once licensed, a PAS agency may be able to accept private-pay clients right away. Some agencies pursue Medicaid waiver enrollment later, which can add time before those clients can be served. Revenue depends on local demand, your pricing, your staffing, and your marketing. No licensing step guarantees client volume or profitability.

The table below lists the key figures and processing details from this guide. Confirm each one with the agency named before you rely on it.

Item	Figure or timing	Confirm with
LLC Certificate of Formation (Form 205)	$300	Texas Secretary of State
Name reservation	$40 for 120 days	Texas Secretary of State
Assumed name certificate for an LLC (Form 503)	$25	Texas Secretary of State
Standard Expedite	$50 per document, typically two to three business days	Texas Secretary of State
Registered agent or office change	$15	Texas Secretary of State
Franchise tax no tax due threshold	$2,650,000 for the 2026 and 2027 report years	Texas Comptroller
Public Information Report	Due May 15 each year, required even when no tax is due	Texas Comptroller
Sales and use tax permit	No charge, typically two to three weeks	Texas Comptroller
HHSC initial 3-year PAS license (parent or branch)	$2,625, as of 2026	Texas HHSC
HHSC application processing	Up to 45 days for a complete application	Texas HHSC

Where to Get Help

The Texas Small Business Development Center Network offers business advising through sbdctexas.org. Use it to test your plan and budget before you file. For licensing questions, go directly to HHSC, and for entity and tax questions, use the Secretary of State and the Comptroller. Bring a written list of questions to each call and save the name of every person you speak with.

Starting a home care agency in Texas is manageable when you handle the paperwork in order and verify every requirement with the agency that controls it. Before you sign a lease, hire a caregiver, or accept a client, confirm your license category, your entity status, and your tax obligations with the appropriate agency and with a qualified attorney and CPA.