How to Start a Home Care Agency in Minnesota: MDH Basic vs Comprehensive Home Care License

Starting a home care agency in Minnesota means getting a home care license from the Minnesota Department of Health (MDH) before you deliver care in a client's home. The license is governed by Minnesota Statutes 144A.471 to 144A.4799 and comes in two levels, basic and comprehensive. Choosing the wrong level, or assuming that filing your company with the Secretary of State is the same as being licensed, is one of the most common ways new agencies lose months. This guide covers the level decision, the paperwork and fees we can confirm, and the points you need to check with the agency before you commit money.

This article is informational content, not legal or tax advice. Home care rules are detailed and change over time. Check the current statute and MDH guidance, and talk with a Minnesota health care attorney and a CPA before you sign a lease, hire staff, or buy an existing agency.

Minnesota has no general business license, so know which license you need

Minnesota does not issue a general statewide business license. Licensing is organized by trade or activity, so the agency that regulates your work is the one that matters. For home care, that agency is MDH. Two other steps are often mistaken for a license. Filing your company with the Minnesota Secretary of State creates the entity, but it is a filing, not a license. Registering with the Minnesota Department of Revenue gets you a Minnesota Tax ID and, where needed, a sales and use tax account. That registration is also not a license. Local zoning and city licenses may apply on top of the state license, and they are covered in step 9 below.

Basic vs comprehensive: how to choose the level

MDH licenses home care at two levels. Pick the level based on the services you will actually deliver, not on the lower fee. Minnesota has no separate home health agency license, so skilled home health services fall under the comprehensive home care license. Use the table below as a starting point, then confirm the details with MDH.

Item	Basic home care license	Comprehensive home care license
Initial application fee	$2,100	$4,200
Fee for change of ownership	$2,100	$4,200
Can the license be transferred?	No. A buyer must apply for a new license	No. A buyer must apply for a new license
Annual renewal fee	Scales with annual home care revenue. Schedule is in Minn. Stat. 144A.472, subd. 7; confirm the current amount with MDH	Scales with annual home care revenue. Schedule is in Minn. Stat. 144A.472, subd. 7; confirm the current amount with MDH
Skilled home health services	Not the level that covers skilled home health	Covered under this license
Medicare or Medicaid certification	A separate federal layer. Check with the MDH Health Regulation Division	A separate federal layer. Check with the MDH Health Regulation Division

If your plan is limited to non-skilled services, ask MDH in writing whether the basic license fits that plan before you file. Getting the level wrong means you either pay for a license you do not need or apply for one that does not cover your work. Neither outcome is worth guessing about.

Materials and documents to gather before you start

Missing paperwork is an easy way to stall an application, so collect these items before you file anything.

• A business entity. For an LLC, you need Articles of Organization. For a corporation, you need Articles of Incorporation under Minnesota Statutes Chapter 302A.
• A Minnesota registered office. This must be a Minnesota street address. A PO box alone is not accepted, and it does not have to match your principal place of business.
• Tax identifiers. A federal Employer Identification Number from the IRS and a Minnesota Tax ID from the Department of Revenue.
• The MDH initial fee. $2,100 for basic or $4,200 for comprehensive.
• A named list of owners, managers and staff who will need background studies.
• Written policies and procedures that match the services on your list.
• A designated managerial official who will run day-to-day operations.
• Workers' compensation coverage, which a home care license requires. Confirm the policy type with your insurer and with the Department of Labor and Industry (DLI).
• A DBA certificate, if needed. If you will operate under a name other than your entity's legal name, you must file a Certificate of Assumed Name. See the DBA note in step 2.

Step-by-step: getting your Minnesota home care license

1. Write your service list and choose a level. List every service you plan to offer, including any skilled services, and the type of client you will serve. Compare that list against the table above. Then confirm the level with MDH in writing. Your application will be judged against the services you describe, so an accurate list at this stage prevents rework later.
2. Form your business entity. If you choose a limited liability company, file Articles of Organization with the Minnesota Secretary of State through Business Filings Online at mblsportal.sos.mn.gov. The filing costs $155 online or in person, which is expedited service, or $135 by mail, which is not expedited. The name must contain the words limited liability company or the abbreviation LLC. It may not contain corporation or incorporated, or their abbreviations, and it must be distinguishable from every entity already on file in Minnesota. Forming an LLC does not require newspaper publication. The yearly Annual Renewal costs $0 and is due December 31 every calendar year. If you miss it, the LLC is terminated or revoked without further notice under Minn. Stat. 322C.0705. The current Secretary of State fee schedule lists reinstatement at $65 by mail or $85 online or in person, but confirm that figure before you rely on it. If you form a corporation instead, the filing fee is also $155, the annual renewal is also $0 and due December 31, and a missed renewal dissolves the corporation under Minn. Stat. 302A.821. If you will operate under a different name, file a Certificate of Assumed Name for $50 online or in person, or $30 by mail. Assumed names must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business, and failure to publish may render the certificate invalid.
3. Register for taxes. Get your federal EIN from the IRS, then register with the Minnesota Department of Revenue for a Minnesota Tax ID. If your services are taxable, you also need a sales and use tax account before your first taxable sale. The state sales tax rate is 6.875 percent, with local taxes added on top. Whether your home care services are taxable, and what withholding accounts you need once you hire employees, are questions to confirm with the Department of Revenue or a CPA.
4. Name your managerial official. A home care license requires a managerial official. Document who holds that role, what authority they have over operations, and how they will oversee staff and client care. Confirm the qualifications and responsibilities in the statute and with MDH before you name someone, because a change later means paperwork and possibly a fresh review.
5. Write your policies. Your written policies must cover the services you deliver. Avoid generic templates that describe services you do not offer. Reviewers compare your policies with the services on your application, so every policy should describe what your staff actually does.
6. Arrange workers' compensation. Get a policy in place that covers your employees before you apply. Ask the insurer to confirm the coverage meets the license requirement, and confirm the policy questions with DLI, which regulates workers' compensation in Minnesota.
7. Start the background studies. Owners, managers and staff must complete background studies. Build this into your hiring process so that no one begins work before their study is complete. Confirm the current study process, and whether clearance is required before a person works in a client's home, with MDH.
8. File the MDH application and pay the fee. Submit the application to MDH with the initial fee: $2,100 for basic or $4,200 for comprehensive. Confirm the current application form, the submission method and the processing time with the MDH Health Regulation Division. Ask MDH for its current turnaround estimate before you schedule your opening date.
9. Check local requirements. Minneapolis and Saint Paul license by category, and neither city issues a general business license. Minnesota has 87 counties, about 853 cities and about 1,780 townships. Zoning and local rules vary by location, so ask the city, county or township planning office whether your office address, or any home-based space you plan to use, needs a zoning approval or a local license for your category.
10. Plan for Medicare and Medicaid separately. Medicare or Medicaid certification is a separate federal layer that sits on top of your state license. A state license does not automatically qualify you for either program. Check with the MDH Health Regulation Division about how certification works and how it relates to your state license before you build your revenue plan around either program.
11. Calendar your renewals and any ownership change. The home care license is renewed every year, and the renewal fee scales with your annual home care revenue. The schedule is in Minn. Stat. 144A.472, subd. 7, so confirm the amount for your revenue band with MDH. If ownership changes, the license cannot be transferred. The buyer must apply for a new license, with the same fee as the initial application.

Expected results

A complete application, with accurate policies, a named managerial official, background studies in progress and your entity and tax registrations in place, is the kind of file that MDH review is designed to assess. Nothing in this guide guarantees approval, a specific timeline or a particular revenue outcome. Once licensed, an agency may be able to accept clients for the services its license covers, and it will need to renew each year on a fee schedule tied to revenue. Treat every figure here as a planning estimate until you confirm it with the agency.

Common mistakes to avoid

• Treating the Secretary of State filing as the license. Your LLC or corporation is a filing. The home care license still has to be issued by MDH.
• Choosing the level by price. The basic fee is lower, but the comprehensive license is the one that covers skilled home health. Pick the level based on the services you will deliver.
• Buying an agency to get its license. Home care licenses cannot be transferred. A buyer applies for a new license and pays the change of ownership fee.
• Hiring before background studies are complete. Build the study into your hiring timeline so you do not have to pause operations or rewrite schedules later.
• Missing the December 31 LLC renewal. The Annual Renewal costs $0, but a missed filing can terminate or revoke the LLC without further notice, and reinstatement adds cost and delay.
• Using a DBA without publishing it. A Certificate of Assumed Name must be published for two consecutive issues in a qualified legal newspaper, and failure to publish may make it invalid. The certificate also needs annual renewal at no charge.
• Assuming a state license covers Medicare or Medicaid. Certification is a separate federal layer with its own requirements. Check with MDH before you plan around either program.
• Budgeting from old fee figures. The figures in this guide were verified on October 23, 2026. Agencies change fees and forms, so confirm every number before you file or sign a contract.

Next steps and official resources

Start with the agency that controls your license, then confirm your entity and tax details. Use these official and public resources:

• Minnesota Secretary of State: https://www.sos.mn.gov/
• Secretary of State business search and Business Filings Online: https://mblsportal.sos.mn.gov/Business/Search
• Minnesota Department of Revenue: https://www.revenue.state.mn.us/
• Minnesota Small Business Development Center Network, administered by DEED: https://mn.gov/deed/business/help/sbdc/
• Minnesota Department of Health, Health Regulation Division: search the MDH website for home care licensing and confirm current forms there
• License Minnesota, the state's central lookup for licenses by topic and agency: mn.gov/elicense

Because home care involves licensing, employment, tax and federal program rules at the same time, consult a qualified Minnesota attorney and a CPA before you form the entity, sign a lease or hire staff. This article is informational content, not legal or tax advice.