How to Start a Home Care Agency in Maine: Personal Care Agency License Required Since July 1, 2024, $500 Initial Fee, $200 to $2,000 Renewal and a 6 to 9 Month DHHS Backlog
How to Start a Home Care Agency in Maine: Personal Care Agency License Required Since July 1, 2024, $500 Initial Fee, $200 to $2,000 Renewal and a 6 to 9 Month DHHS Backlog
Since July 1, 2024, no entity in Maine may provide home care services without a Department of Health and Human Services (DHHS) personal care agency license. The requirement comes from 22 MRSA 1717(2-A) and the rules in 10-144 CMR ch. 129, adopted August 20, 2024. If you plan to open a home care business, the maine home care license is the first permit to build your timeline around, not something you add after the company exists. This guide covers the order to follow: entity formation, insurance, background checks, staffing, the DHHS application and the ongoing costs.
Disclaimer: This article is informational content, not legal or tax advice. Talk with a Maine attorney and a certified public accountant (CPA) before you choose a legal structure, sign a lease, or set up payroll.
What the License Covers and What It Does Not
The personal care agency license applies to an entity that provides home care services. Home health and hospice are separate licenses. If you plan to offer skilled nursing visits or hospice care, confirm which license applies to each service line before you file. Do not assume one license covers everything.
Maine has no general statewide business license. Registering an LLC or corporation and filing an assumed name are filings with the Secretary of State, not permits to operate. The DHHS personal care agency license is the operating permit that matters for this business, and it sits on top of ordinary registration. Maine does not require a general license at the town level either, but municipal officers license certain named activities by ordinance, so you still need to check with your town.
Materials and Information You Need Before You Start
- A proposed business name, checked against the Secretary of State’s business search.
- Formation documents: the Certificate of Formation (Form MLLC-6) for an LLC, or the Articles of Incorporation (Form MBCA-6) for a corporation. Maine does not accept online formation filings, so these are fillable PDFs you print and mail or deliver with payment.
- A registered agent with a Maine street address, or a commercial registered agent listed with the Secretary of State.
- Quotes or certificates for general liability and professional liability insurance.
- The names of your administrator and every owner, plus the identifying information each person needs for the background checks.
- Credential files for direct care staff: CNA certificates, Personal Support Specialist training records or proof of completion of a DHHS-approved program, and a training schedule for anyone who is still enrolling.
- About $500 set aside for the nonrefundable DHHS initial application fee.
- A cash reserve sized for a DHHS backlog that can run 6 to 9 months.
Step 1: Choose a Legal Structure
Most owners start with an LLC or a corporation because either one separates business debts from personal assets, though neither protects you from your own professional negligence. An LLC is taxed by default as a pass-through entity, so members report income on Maine individual income tax returns at graduated rates of 5.8% to 7.15%. Maine has no LLC franchise tax and no separate LLC annual tax. An LLC that elects corporate treatment pays Maine corporate income tax at 3.5% to 8.93%. A corporation is formed under Title 13-C, the Maine Business Corporation Act.
Structure affects liability, taxes, and how you bring in partners or investors. Treat this as a question for a CPA and an attorney, not a default you pick on a formation website.
Step 2: Reserve Your Name and File Formation Documents
An LLC name must include the words “limited liability company” or “limited company,” or an abbreviation such as LLC, L.L.C., LC or L.C., under 31 MRSA 1508. You can reserve a name for 120 days on Form MLLC-1 for $20.
File the Certificate of Formation (Form MLLC-6) for $175, or the Articles of Incorporation (Form MBCA-6) for $145. The Secretary of State’s corporations pages read on 2026-10-28 state a processing time of 2 to 7 business days, but earlier snapshots showed longer waits, so treat any figure as variable. Expedited options are available: 24 Hour Service is $50 per request, and Immediate Service, completed at the time the request is made, is $100 per request. Availability depends on staffing, and the Bureau notes delays during high volume.
Every LLC and corporation must appoint and continuously maintain a registered agent. A noncommercial agent must provide a physical street address in Maine, not a P.O. Box. Changes to the agent are filed on Form CLKRA-3 for $35.
Step 3: Get Your Federal and State Tax Registrations
Apply for a federal employer identification number (EIN) from the IRS before you hire staff, since payroll and bank accounts usually require it. Once you have employees, register for Maine withholding with Maine Revenue Services at maine.gov/revenue. Maine’s sales tax covers sales of tangible goods and a closed list of taxable services (36 MRSA 1752(17-B)), so ask Maine Revenue Services whether any part of your business falls on that list before you apply for a sales tax permit.
Step 4: Check Local Rules and Any Assumed Name
Maine has 482 organized municipalities, and fees and rules for licensed activities vary by town. Call your city or town office and ask whether any ordinance affects a home care office, signage, or a home-based location. The state’s free Business Answers assistant at maine.gov/businessanswers can help identify other state permits you may need.
If you will operate under a name other than your legal name, the LLC or corporation files a Statement of Intention to do Business under an Assumed Name (Form ASUM-5) with the Secretary of State for $125. Sole proprietors and general partnerships file a sworn assumed-name certificate with the municipal clerk instead. Because the DHHS license applies to an entity, confirm with DHHS whether a sole proprietor can hold it before you choose that structure.
Step 5: Bind Liability Insurance Before You Apply
The application requires both general liability and professional liability coverage. Ask your broker for policies that name the exact legal entity, its Maine address, and the services you will deliver. Confirm in writing that the limits and forms meet the application requirements before you pay the premium. Keep the certificates in your application folder so you can submit them without delay.
Step 6: Name an Administrator and Run Background Checks
The application requires a named administrator. Choose someone who can manage the agency day to day and who will be listed on the license. That person, along with every owner and staff member, goes through the Maine Background Check Center check.
Each owner also needs a State Bureau of Identification (SBI) check completed within 30 days before you apply. Timing is the most common scheduling problem here. Order the SBI check once your filing date is close, not months early, because a check older than 30 days will not satisfy the rule.
Step 7: Build a Qualified Direct Care Staff Plan
Direct care staff must meet one of three conditions:
- Hold a Certified Nursing Assistant (CNA) credential.
- Have finished Personal Support Specialist training or a DHHS-approved program.
- Enroll within 60 days of hire and finish within nine months.
Every new direct care employee must be observed on site by a supervisor every 30 days for the first three months. Build those observation visits into your staffing schedule and budget the supervisor’s time, because it is a recurring cost from the first day of hire.
Step 8: File the DHHS Application and Pay the $500 Fee
The initial application fee is $500, and it is nonrefundable. Assemble the entity documents, insurance certificates, administrator designation, background check results and staff credential files into one organized packet before you submit. Incomplete packets slow the review.
Plan around the backlog. DHHS licensing reports that it is 6 to 9 months behind, which means your application may sit for most of a year before a decision. Do not take on clients, accept referrals, or begin care in the meantime. The rule is not a suggestion: operating without a license is a civil violation with a fine of at least $500 per day and at most $10,000.
A new agency receives a provisional license that runs 3 to 12 months. A full license can run up to 2 years. Confirm with DHHS what conditions must be met to move from provisional to full status.
Step 9: Plan Your Renewal and Recurring Costs
Your renewal fee depends on how many employees the agency has. Confirm with DHHS how it counts staff, including part-time employees, before you set your budget.
| Employee count | Renewal fee |
|---|---|
| 1 to 5 | $200 |
| 6 to 10 | $500 |
| 11 to 20 | $1,000 |
| 21 to 50 | $1,500 |
| 51 or more | $2,000 |
Separately, your LLC or corporation must file an annual report with the Secretary of State. The fee is $85, and it is due June 1 each year. The first report is due between January 1 and June 1 of the year after formation. File it through Annual Report Online (InforME) at the Annual Report portal.
Costs at a Glance
| Item | Amount | Agency |
|---|---|---|
| LLC Certificate of Formation (MLLC-6) | $175 | Secretary of State |
| Corporation Articles of Incorporation (MBCA-6) | $145 | Secretary of State |
| Name reservation (MLLC-1, 120 days) | $20 | Secretary of State |
| Expedited 24 Hour Service | $50 per request | Secretary of State |
| Immediate Service | $100 per request | Secretary of State |
| Assumed name (ASUM-5) | $125 | Secretary of State |
| Registered agent change (CLKRA-3) | $35 | Secretary of State |
| Annual report (MLLC-13 or MBCA-13) | $85 per year | Secretary of State |
| Personal care agency initial application | $500, nonrefundable | DHHS |
| Personal care agency renewal | $200 to $2,000, by employee count | DHHS |
Municipal fees, insurance premiums, background check charges, and training costs are not listed here because the state does not publish a single figure for them. Confirm each with the town, insurer, or training provider before you finalize your budget.
Common Mistakes to Avoid
- Starting care during the backlog. A filed application is not a license. Operating before approval exposes you to fines of at least $500 per day.
- Treating formation as licensing. The Secretary of State filing creates your entity. It does not authorize home care.
- Letting the SBI check go stale. A check run more than 30 days before you apply does not count, so you pay for it twice.
- Hiring first and training later without tracking deadlines. Enrollment must happen within 60 days of hire, and completion within nine months.
- Skipping the supervisor observations. The 30-day on-site observation for the first three months is a rule, and it needs to be scheduled and documented.
- Using a P.O. box for the registered agent. A noncommercial agent needs a physical Maine street address.
- Budgeting renewal as a flat fee. Renewal rises with headcount, so a fast-growing agency can move into a higher tier quickly.
- Confusing service lines. Home health and hospice are separate licenses. Check each one before you advertise the service.
Expected Results
Following these steps may help you file a complete application on the first submission, which can reduce delays caused by missing documents. It can also help you line up staff, insurance and supervision so you are ready to start the day the provisional license arrives. The timing of that license depends on the DHHS backlog, which currently runs 6 to 9 months, so the timeline in your business plan should allow for a long wait. Results vary with the completeness of your packet, your staffing plan, and DHHS processing time.
Where to Get Help
- Secretary of State, Bureau of Corporations, Elections and Commissions: maine.gov/sos/corporations-commissions
- Maine Revenue Services: maine.gov/revenue
- Business Answers licensing assistant: maine.gov/businessanswers
- Maine Small Business Development Centers: mainesbdc.org
- SBA resources for Maine: sba.gov/district/maine
Because this business touches licensing, employment, insurance, and tax, plan a consultation with a Maine attorney and a CPA before you sign contracts or hire staff. This article is informational content, not legal or tax advice.