Your private practice foundation
Everything you need before your first client call.
Check off each item as you finish it. You don't need to do this in one day — but you do need all of it done before you start taking on private clients.
How to use this tool
Start here
Do the Legal and Financial sections first. The rest can happen in parallel. Do not start outreaching to referral sources until your service agreement is in your hands and your bank account is open.
Legal Setup
0 of 5 done
Get your EIN (Employer Identification Number) from the IRS
Free. Takes 5 minutes online. Go to irs.gov/ein-assistant. You'll use this instead of your Social Security Number when clients ask for payment info. Do this first.
Do this firstDecide your business structure — sole proprietor is fine to start
You do not need an LLC to begin private pay care. Operating as a sole proprietor under your own name costs nothing and has no registration. You can always form an LLC later once you have clients and steady income. Most private pay caregivers start as sole proprietors.
Check if your city or county requires a business license for home care services
Search "[your city] business license home care" or call your city clerk's office. Some cities require a general business license ($25–$75/year). Some require nothing. Know which one you are.
Fill in and sign your Service Agreement template
This is in your toolkit. Every client gets a signed copy before you start. No agreement, no shift. Non-negotiable.
Financial Setup
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Set up Zelle, CashApp, or Venmo Business for receiving payments
Zelle is the safest because funds go directly between bank accounts. Set it up on your business checking account. Tell clients: "I accept Zelle, check, or cash." Put it in your service agreement.
Open a separate savings account and label it "Taxes"
Every time a client pays you, move 25–30% into this account immediately. Private pay income is not withheld — the IRS will expect quarterly estimated payments. That money needs to be there. Ignoring this is the most common mistake new private pay caregivers make.
Complete IRS Form W-9 and keep a clean copy ready
Download at irs.gov. Fill it in with your name and EIN. Clients who pay you more than $600/year are required to send you a 1099 — they need your W-9 to do that. Have it ready before you're asked.
Get professional liability (general liability) insurance
Budget $30–$60/month. Try Hiscox, CoverWallet, or Next Insurance. Search "home care professional liability insurance." Do not skip this. One incident without coverage could end your practice.
Professional Documents
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Build your professional bio using the Bio Template in your toolkit
One page. Your credential, your years, what you specialize in, and what makes you the right person for the job. Discharge planners keep these on file. This is not a resume — it is a professional introduction.
Complete your Services Menu using the tool in your toolkit
Your services, your rates, your minimum hours, your contact info. This goes in your professional packet and gets handed to referral sources and potential clients. Have 10 printed copies ready before your first outreach conversation.
Set up your invoice template with your name, EIN, and payment terms
Every client gets an invoice. It creates a paper trail for you both. Your invoice should show your name, EIN, dates of service, hours, rate, total due, and payment due date. The template is in your toolkit.
Line up 3 professional references who will answer the phone
Former supervisors, doctors, nurses, social workers, or past clients (with permission). Text or call each one and ask if they're willing to speak on your behalf. Do not list anyone who hasn't said yes. Have their name, title, relationship to you, and phone number ready on one clean document.
Assemble your professional packet (printed or digital)
Packet contains: your bio, your services menu, your background check summary, your references page. This is what you hand or email to a discharge planner or potential client. It should look like it came from a professional, because it did.
Communications Setup
0 of 4 done
Create a professional email address using your name
Gmail is fine. Use firstname.lastname@gmail.com or firstnamelastname.care@gmail.com. Do not use an email address that includes numbers, nicknames, or anything that reads as casual. This address goes on your services menu, your packet, and your service agreement.
Record a professional voicemail greeting
Script: "You've reached [your name], certified home care professional. I'm unable to take your call right now. Please leave your name, number, and the best time to reach you, and I'll return your call within 24 hours." Record it fresh — not the carrier default.
Decide how clients will schedule and pay you, and write it down
Example: "New clients call or text me first. I schedule a free 20-minute phone call. If it's a match, I do a paid in-home assessment at $[X]. Service agreement signed before shift 1. Payment due by 5pm on day of service via Zelle or check." Know this before your first inquiry.
Set up a simple calendar system for scheduling shifts
Google Calendar with a separate calendar for "Work" is enough. The point is that when a client asks your availability, you can answer in under 30 seconds. Do not try to hold your schedule in your head when you have more than one client.
Record Keeping
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Create a client folder system — paper or digital
One folder per client. Contains: signed service agreement, care plan, health history form, shift notes, and invoices. You do not want to be searching through texts and emails when a family calls with a question. Google Drive with one folder per client works. So does a physical binder.
Start tracking every mile you drive for work
Client home, supply runs, outreach visits — all of it is deductible. The IRS mileage rate for 2026 is 70 cents per mile. Use your Mileage Tracker in the toolkit. 100 miles a week = $3,640/year in deductions. Don't leave it on the table.
Track every business expense from day one
Gloves, gait belts, scrubs, background check fee, insurance premiums, continuing education, professional development — all deductible. Keep the receipts. A simple spreadsheet works. The Expense Tracker in your toolkit has the categories pre-built.
Mark the quarterly estimated tax due dates on your calendar
2026 due dates: April 15, June 16, September 15, January 15, 2027. Missing these results in a penalty. If you move 25% of every payment into your tax savings account the day you receive it, you'll have the money ready when these dates arrive.