HomeCareAtlas Team · Updated November 2026
Researched from primary state regulatory sources.
How to Start a Home Care Agency in Minnesota
Starting a home care agency in Minnesota costs roughly $45,000 - $85,000 (our estimate) and takes 3-5 Months. Here's every step, fee, and deadline — sourced directly from Minnesota Department of Health (MDH).
In Minnesota, you need a license from the Minnesota Department of Health (MDH) to give home care. You cannot offer or advertise home care without one, unless the law exempts you (Minn. Stat. §144A.471). There are two license types: Basic and Comprehensive. Basic covers help with bathing, dressing, grooming, self-feeding, and toileting, plus standby help and reminders. Basic does not cover hands-on help with transfers or getting around. That needs a Comprehensive license, which also adds nursing, delegated tasks, and medication management (Minn. Stat. §144A.471, subds. 6-7). The first license is a temporary license. A Basic one costs $2,100. It lasts up to one year.
To start a non-medical home care agency in Minnesota, you need a Basic Home Care Provider License from the Minnesota Department of Health (MDH). The application fee is $2,100 (temporary license fee (basic)), the process takes approximately 3-5 months, and total startup costs range from $45,000 - $85,000 (our estimate). Two license types are available (Basic and Comprehensive), background studies are mandatory, and you must deliver qualifying services to maintain your license.
- License Required
- Yes — Basic Home Care Provider License
- Regulatory Body
- Minnesota Department of Health (MDH)
- Application Fee
- $2,100 (temporary license fee (basic))
- Timeline
- 3-5 Months (full licensing timeline (our estimate))
- Total Startup Cost
- $45,000 - $85,000 (our estimate)
- Key Requirement
- Two license types are available (Basic and Comprehensive), background studies are mandatory, and you must deliver qualifying services to maintain your license.
- Last Verified
- November 2026 against Minnesota Department of Health (MDH) regulations
Temporary License Fee (Basic)
Source: Minn. Stat. §144A.472, subd. 7(a) · Checked Oct 2026
Full Licensing Timeline (Our Estimate)
This is our best guess. Check with the Minnesota Department of Health (MDH).
Residents Age 70+
Moderate Opportunity
How Minnesota compares to neighboring states
| State | License Fee | Timeline | Startup Cost |
|---|---|---|---|
| Minnesota ← | $2,100 | 3-5 Months | $45,000 - $85,000 (our estimate) |
| Wisconsin | $0 (no license) | 2-6 Weeks (Private Pay) | 6-12 Months (Medicaid PCA) | $40,000 - $75,000 |
| Iowa | $0 (no license) | No timeline | $18,000 - $40,000 |
| North Dakota | $0 (no license) | 4-8 Weeks | $25,000 - $50,000 |
| South Dakota | $0 (no license) | 4-8 Weeks | $25,000 - $50,000 |
Minnesota Licensing Overview
The Minnesota Department of Health (MDH) oversees all non-medical agencies.In Minnesota, you need a license from the Minnesota Department of Health (MDH) to give home care. You cannot offer or advertise home care without one, unless the law exempts you (Minn. Stat. §144A.471). There are two license types: Basic and Comprehensive. Basic covers help with bathing, dressing, grooming, self-feeding, and toileting, plus standby help and reminders. Basic does not cover hands-on help with transfers or getting around. That needs a Comprehensive license, which also adds nursing, delegated tasks, and medication management (Minn. Stat. §144A.471, subds. 6-7). The first license is a temporary license. A Basic one costs $2,100. It lasts up to one year.
Two License Types
A Basic license covers help with bathing, dressing, grooming, self-feeding, and toileting. It also covers standby help, reminders, and chores done with that care (Minn. Stat. §144A.471, subd. 6). It does not cover hands-on help with transfers and mobility. A Comprehensive license adds that, plus nursing, therapy, RN-delegated tasks, and medication management (subd. 7). Pick the one that fits your services.
Background Studies Required
Owners and managerial officials must pass a DHS background study before MDH issues a license (Minn. Stat. §144A.476). MDH says the named RN or licensed health professional must pass one, too. Staff with direct client contact need one, too (Minn. Stat. §144.057). Ask DHS when the study must be done.
Temporary License First
MDH issues a temporary license after it reviews a complete application. Once the application is complete, MDH has 90 days to issue or deny it (Minn. Stat. §144A.473). The temporary license lasts up to one year. MDH surveys you within 90 days after it learns you are serving clients. Pass the survey and you get a full license.
Must Deliver Services Each Year
To maintain a license, providers must deliver qualifying home care services directly in a client's home for a fee during each 12-month license period (Minn. Stat. §144A.472, subd. 3).
Insurance and Bonds
The home care law does not require liability insurance. You only send proof of it if you have it (Minn. Stat. §144A.472, subd. 1). You must send proof of workers' comp. No surety bond is required.
Estimated Startup Costs (2026)
Budget for $45,000 - $85,000 (our estimate) to ensure 3-6 months of runway.
| Category | Low Est. | High Est. |
|---|---|---|
| MDH Application Fee (Basic License) | $2,100 | $2,100 |
| MDH Application Fee (Comprehensive) | $4,200 | $4,200 |
| Business Formation (LLC/Corp + MN SOS) | $200 | $600 |
| NETStudy 2.0 Background Studies (x5; study + fingerprint fees set by DHS) | $250 | $300 |
| General Liability Insurance (optional, but common) | $2,500 | $5,000 |
| Workers' Compensation (proof required with application) | $3,000 | $8,000 |
| Professional Liability / E&O Insurance | $1,500 | $3,500 |
| Policies & Procedures Manual | $1,000 | $3,500 |
| Office Setup & Equipment | $2,000 | $5,000 |
| Initial Marketing & Website | $2,500 | $6,000 |
| Working Capital (3-6 Months) | $25,000 | $50,000 |
We map every cost and file your Minnesota license for you.
MDH Home Care Licensing Roadmap
1-2 Weeks
Business Entity & EIN Formation
Register your LLC or corporation with the Minnesota Secretary of State. Get an EIN from the IRS. Register with the Minnesota Department of Revenue for payroll taxes.
2-4 Weeks
Develop Policies & Procedures
Write policies that fit your agency and meet Chapter 144A. The law lists what you need. That includes maltreatment reporting, background studies, training, complaints, client checks, the bill of rights, infection control, and TB screening (Minn. Stat. §144A.472, subd. 1). MDH reviews them with your application.
1-2 Weeks
Obtain Insurance
Get workers' comp. MDH needs proof with your application. General and professional liability are not required by the home care law, but most agencies carry them.
2-4 Weeks
Complete Background Studies
Owners, managerial officials, and the named RN or licensed health professional must pass NETStudy 2.0 background studies through the Department of Human Services (DHS). Each study has a fee plus a fingerprint and photo fee. Check DHS for current amounts. Staff with a valid health-related licensing board (HLB) license and a §214.075 check do not need a separate study (Minn. Stat. §144.057). That does not apply to owners, managerial officials, or license applicants.
1 Week to Prepare
Submit MDH Application
Fill out the MDH home care license application. Include your policies, background study proof, workers' comp proof, and the fee ($2,100 Basic or $4,200 Comprehensive). Read the checklist closely. Missing items slow you down.
Up to 90 Days (after complete)
MDH Review & Possible Meeting
MDH checks that you know and follow the home care rules. It may ask for more papers, a call, a meeting, or an on-site visit. MDH confirms receipt within 14 days. Once your file is complete, the law gives MDH 90 days to issue or deny the temporary license (Minn. Stat. §144A.473).
Ongoing
Receive Temporary License & Begin Operations
Once approved, MDH issues a temporary license. It lasts up to one year. You can start serving clients. Tell MDH within 5 days of your first client. MDH will survey you within 90 days after that. Pass and you get a full license. If you serve no clients during the year, the temporary license ends and you must reapply.
We can do all of them for you in Minnesota.
New 2026 Legal Mandates
HLB Background Study Exemption
Ongoing - Staff who hold a valid license from a health-related licensing board (HLB) and had a background check under Minn. Stat. §214.075 do not need a separate NETStudy 2.0 study (Minn. Stat. §144.057). This speeds up hiring for licensed nurses and therapists. It does not cover owners, managerial officials, or license applicants.
Annual Service Delivery Requirement
Ongoing - To renew a Basic or Comprehensive license, you must have given home care in the past 12 months (Minn. Stat. §144A.472, subd. 3). If not, MDH can refuse to renew.
HCBS Integrated License Option
Ongoing - You can add an HCBS designation to your home care license (Minn. Stat. §144A.484). This is called an integrated license. It lets you give basic support services under Minn. Stat. §245D.03. You must still meet all Chapter 144A home care rules. MDH says each client must get at least one home care service. If not, the integrated license can be denied or revoked.
Home Care Bill of Rights
Ongoing - All licensed and exempt home care providers must comply with the Home Care Bill of Rights (Minn. Stat. §144A.44). This includes informing clients of their rights and maintaining policies that protect client dignity, privacy, and autonomy.
Orientation and Annual Training (Minn. Stat. §144A.4796)
Ongoing - Every staff member who gives or supervises direct care must finish an orientation before seeing clients. It covers emergency steps, maltreatment reporting, the Home Care Bill of Rights, complaints, and your policies. After that, each direct care worker must complete at least 8 hours of training every 12 months.
Our Minnesota licensing team tracks the law so you do not have to.
Caregiver Mandates
Important Warning
Minnesota's license is built around care given by you or your employees, not by contract (Minn. Stat. §144A.471, subd. 2). Treat aides as W-2 employees. Calling employees contractors can cause tax and wage problems.
- Background Study (NETStudy 2.0): Staff with direct client contact need a DHS background study through NETStudy 2.0 (Minn. Stat. §144.057). It uses fingerprints and a photo (Minn. Stat. §245C.10, subd. 1c). Check DHS for current fees. HLB-licensed staff with a §214.075 check are exempt.
- Training Requirements: Aides must finish an orientation before they see clients (Minn. Stat. §144A.4796). Unlicensed aides also need training and a skills check on their tasks (§144A.4795). Then they need at least 8 hours of training every 12 months. Topics include maltreatment reporting, the bill of rights, infection control, and your policies.
- RN or Licensed Health Professional (Comprehensive): Comprehensive agencies give nursing, therapy, and delegated tasks. They need an RN or other licensed health professional to do and oversee that work.
- TB Screening: You must run a tuberculosis infection control program that follows current CDC guidelines (Minn. Stat. §144A.4798). It covers all staff, contractors, and volunteers. Keep written proof.
Regional Billing Snapshots
*Regional rates vary by specialized care needs (Dementia, Parkinson's) and local competition.*
We launch Minnesota home care agencies start to finish.
Regional Market Opportunities
Minnesota has about 1.11 million adults 65 and older (19.1%, Census 2025 estimate). Many live in the Twin Cities area. Rural areas have less competition. Faith-based senior care groups like Ebenezer, Benedictine, and Presbyterian Homes can be good referral partners. Note: the billing rates below are our estimates, not official numbers.
Minneapolis-St. Paul Metro
Home to the majority of the state's senior market. Dense concentration of hospitals, clinics, senior living communities, and referral sources.
Key: Big health systems like Allina Health, M Health Fairview, HealthPartners, and Hennepin Healthcare send patients home every day. Get to know their discharge planners.
Rochester / Southeast MN
Mayo Clinic is based here. That means many patients going home after care.
Key: Some patients may need short-term help at home after a procedure.
Duluth / Northeast MN
Aging population with limited facility options. Growing demand for in-home services.
Key: Rural areas have fewer competitors — opportunity for agencies willing to cover wider geography.
St. Cloud / Central MN
Moderate market with steady demand from retirees and agricultural community.
Key: CentraCare Health System is a key referral partner in the region.
Cost of care in Minnesota
What agencies charge clients vs. what caregivers earn in Minnesota. The difference is the agency's gross margin per billable hour — before overhead like insurance, admin, marketing, and compliance costs.
$42
Avg. hourly rate charged to clients
$23.10
Avg. caregiver hourly wage
$18.90
Gross margin per hour
45%
Gross margin %
What this means for agency owners
In Minnesota, agencies keep roughly $18.90 per billable hour after paying the caregiver. That's a 45% gross margin.
This is a strong margin that gives you room to cover overhead costs (insurance, admin, marketing, compliance) and still run a profitable agency.
Sources: Avg. hourly rate from CareYaya and CareScout 2025 surveys (averaged). Caregiver wage from Care.com. Gross margin is before overhead costs like insurance, admin, marketing, and compliance.
Minnesota Medicaid Programs
Medical Assistance (MA) Home Care(Low-income seniors and individuals with disabilities recipients)
Medical Assistance is Minnesota's Medicaid program. It covers some home care, like home health aide and skilled nursing visits.
Agency Angle: Enroll with DHS as a Medical Assistance provider. Nursing and home health aide visits need a Comprehensive license.
PCA and CFSS (Community First Services and Supports)(Individuals of all ages with qualifying conditions recipients)
PCA pays for hands-on help with daily tasks for people with a medical need. State law says CFSS replaces PCA once the federal government approves it (Minn. Stat. §256B.85). Check DHS for where the switch stands.
Agency Angle: This is a DHS program, not an MDH license. PCA agencies are exempt from the home care license (Minn. Stat. §144A.471, subd. 8). CFSS supports are not counted as home care services. You enroll with DHS and follow its rules.
Elderly Waiver (EW)(Seniors 65+ who qualify for nursing facility level of care recipients)
Provides home and community-based services to seniors 65+ who would otherwise require nursing facility care. Covers homemaker, companion, chore, and personal care services.
Agency Angle: Can fit both Basic and Comprehensive licensees. Waiver clients often need long-term help. You enroll with DHS to serve them.
Community Alternative Care (CAC) Waiver(Individuals of all ages requiring hospital-level care recipients)
Serves individuals who require hospital-level care but can be safely maintained at home with appropriate support services.
Agency Angle: These clients have high medical needs. Nursing services need a Comprehensive license.
Becoming a Provider
Essential 2026 Tech Stack for Owners
Tiles outlined in teal are areas HomeCareAtlas covers in our platform.
Minnesota Licensing FAQ
What is the difference between a Basic and Comprehensive Home Care license in Minnesota?
A Basic license covers help with bathing, dressing, grooming, self-feeding, and toileting. It also covers standby help, medication and exercise reminders, and chores done along with that care (Minn. Stat. §144A.471, subd. 6). A Basic licensee cannot give hands-on help with transfers or mobility. A Comprehensive license adds that, plus nursing, therapy, medication management, and tasks an RN delegates (subd. 7). If you only do chores like cleaning, cooking, and shopping, you need a home management registration instead (Minn. Stat. §144A.482). Download the MDH Statement of Services for each license to see the full list.
How long does it take to get a home care license in Minnesota?
It depends on how complete your application is. Once your file is complete, the law gives MDH 90 days to issue or deny the temporary license (Minn. Stat. §144A.473). MDH's website says 60 days. We suggest planning 3-5 months from start to first client. Missing papers are the main cause of delays.
Do I need a license just to provide housekeeping and meal prep?
No. If you only do housekeeping, meals, and shopping for people who cannot do them due to illness or disability, you need a Home Management Registration with MDH (Minn. Stat. §144A.482). It costs $50 a year for an organization. If you offer any other home care service, you need a license.
What is the HCBS integrated license?
An integrated license adds an HCBS designation to your home care license (Minn. Stat. §144A.484). It lets you give 245D basic support services along with home care. You must still give real home care services. MDH says giving only HCBS basic support services can lead to denial or revocation.
Are licensed nurses exempt from NETStudy 2.0 background studies?
Often, yes. Staff with a valid license from a health-related licensing board (HLB) who had a background check under Minn. Stat. §214.075 do not need a separate NETStudy 2.0 study (Minn. Stat. §144.057). This covers RNs, LPNs, and other HLB-licensed staff. It does not cover owners or managerial officials.
Can I get Medicare certified with a Basic Home Care license?
No. MDH says you need a Comprehensive license and a passed initial full survey. Temporary licensees cannot get Medicare certified either.
Who is exempt or excluded from home care licensure?
Some are exempt but must still follow the Home Care Bill of Rights. Examples: PCA agencies under Medical Assistance, home-management-only providers who register, and nurses or therapists working on their own. Others are excluded, like referral-only services and staffing agencies that only supply licensed providers. See Minn. Stat. §144A.471, subdivisions 8 and 9.
What happens if I don't provide services during my license period?
To renew, you must have given home care in the past 12 months (Minn. Stat. §144A.472, subd. 3). If you serve no clients during a temporary license, it ends and you must reapply.
How much does it cost to start a home care agency in Minnesota?
The MDH temporary license fee is $2,100 for Basic and $4,200 for Comprehensive. Yearly renewal fees are based on your home care revenue, from $231 to $7,651 (Minn. Stat. §144A.472, subd. 7). We estimate total startup costs at $45,000 to $85,000. That covers fees, insurance, workers' comp, policies, marketing, and 3-6 months of working capital. No surety bond is required.
What insurance do I need for a Minnesota home care agency?
You must have workers' comp and send proof with your application. The home care law does not require liability insurance. You only send proof if you have it (Minn. Stat. §144A.472, subd. 1). Most agencies still carry general and professional liability. No surety bond is required.
Is Minnesota a good market for home care agencies?
Yes. Minnesota has about 1.11 million adults 65 and older (19.1%, Census 2025 estimate). Medicaid programs like the Elderly Waiver and CFSS pay for care at home. Many seniors live in the Twin Cities area. Faith-based senior care groups can be good referral partners.
Starting in a Nearby State?
Licensing requirements vary a lot between states. Compare your options:
Wisconsin
No state license required · 2-6 Weeks (Private Pay) | 6-12 Months (Medicaid PCA)
Iowa
No state license required · N/A
North Dakota
No state license required · 4-8 Weeks
South Dakota
No state license required · 4-8 Weeks
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Home care agencies in Minnesota
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- Home care agencies in Minneapolis
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Where our numbers come from
We check each fact against Minnesota's own rules. Tap a source to read it yourself.
- License needed?YesMinn. Stat. §144A.471, subd. 1· Oct 2026
- Who oversees itMinnesota Department of Health (MDH)Minn. Stat. §144A.471, subd. 1· Oct 2026
- License nameBasic Home Care Provider LicenseMinn. Stat. §144A.471, subd. 6· Oct 2026
- The rulesMinn. Stat. §§ 144A.43–144A.4799 (Home Care Licensing)Minn. Stat. ch. 144A· Oct 2026
- First license fee$2,100Minn. Stat. §144A.472, subd. 7(a)· Oct 2026
- License lasts1 yearMinn. Stat. §144A.473, subds. 1-2· Oct 2026
- BondNoneMinn. Stat. §144A.472, subd. 1· Oct 2026
- Owner/manager trainingNo state minimumMinn. Stat. §144A.472, subd. 1(11)· Oct 2026
- Caregiver trainingNo state minimumMinn. Stat. §§144A.4795, subd. 7; 144A.4796· Oct 2026
- Background checksDHS background study (NETStudy 2.0) for owners, managerial officials, employees, contractors, and volunteersMinn. Stat. §144A.476; §144.057; ch. 245C· Oct 2026
- How long it takes3-5 MonthsBest guess — not confirmed yet
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This guide is for informational purposes only and does not constitute legal, regulatory, or business advice. Licensing requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing agency before making business decisions. HomeCareAtlas is not responsible for the accuracy or completeness of this information.
Researched and reviewed by
John Helmy, Founder of HomeCareAtlasBuilding tools and resources to help home care agency owners navigate licensing, compliance, and growth.