How to Start a Home Care Agency in Kentucky: Personal Services Agency Certification, $500 Initial, $350 Renewal and the Three Client Exclusion

If you want to start a home care agency business in Kentucky, the first thing to understand is that a non-medical personal services agency is certified, not licensed. The Cabinet for Health and Family Services (CHFS), through its Office of Inspector General, certifies these agencies under KRS 216.710 to 216.714 and 906 KAR 1:180. The initial application fee is $500, annual recertification is $350, and the review does not require an on-site visit. This guide walks through the full sequence, from deciding whether you need certification to forming your entity, setting up tax accounts and screening staff.

This article is informational content, not legal or tax advice. Fees, forms and processing practices can change, so confirm every figure with the agency named before you file. If your situation is complex, such as Medicaid enrollment, mixed skilled and personal services, or multiple owners, talk to a qualified Kentucky attorney and a CPA.

Kentucky Fees at a Glance

Item	Amount	Who receives it or where it is filed
Personal services agency initial application	$500	Paid to the Kentucky State Treasurer; reviewed by CHFS Office of Inspector General
Personal services agency recertification	$350 per year	Paid to the Kentucky State Treasurer; filed at least 60 days before expiry
LLC Articles of Organization (Form KLC)	$40	Secretary of State, through the Kentucky One Stop Business Portal
Corporation Articles of Incorporation (Form PAI)	$50	Secretary of State
Annual report (LLC or corporation)	$15	Secretary of State; due June 30 every year
Name reservation	$15	Secretary of State; holds the name for 120 days
Assumed name certificate (Form ASN)	$20	Secretary of State; effective for five years and renewable
Change of registered agent or registered office	$10	Secretary of State
Limited Liability Entity Tax (LLET) minimum	$175	Kentucky Department of Revenue; applies when Kentucky gross receipts or gross profits are $3 million or less

What You Need Before You Start

Gather these items before you open any portal. Most delays come from missing information, not from the filings themselves.

• A written list of the services you plan to offer, so you can show which fall under personal services and which do not
• Your proposed business name, checked in the Secretary of State’s business search at sosbes.sos.ky.gov
• A Kentucky street address for your registered office (a post office box is not accepted)
• A registered agent: either a Kentucky resident whose business address matches the registered office, or a qualified entity with the same address
• Names and addresses of all owners, members or officers
• A staff roster with screening records for each caregiver
• A payment method for the $500 application fee, payable to the Kentucky State Treasurer
• Access to the Kentucky One Stop Business Portal and to MyTaxes.ky.gov

Step 1: Confirm That Your Services Require Certification

Certification applies to agencies that provide personal services. Under Kentucky’s framework, personal services include help with daily living, medication reminders, attendant care, companion services, sitter services, respite care and homemaker services.

Several activities fall outside the certification requirement:

• House cleaning, laundry, shopping or transport only. If that is your entire service menu, certification is not triggered.
• Services provided by the client’s family.
• Services provided by individuals serving no more than 3 clients at once. This is the three client exclusion, and it is the provision most often misunderstood. The exclusion describes individual caregivers. It does not give a business a blanket exemption. If you employ several caregivers who each serve more than three clients at once, or if your staffing model is built around that, confirm with the CHFS Office of Inspector General how the exclusion applies before you rely on it.
• All-volunteer services.
• Services that require an order from a licensed health professional.

Skilled home health is a different matter. It is a separate license under the certificate of need process, and it is not covered by the personal services certificate. If you plan to offer skilled nursing or therapy, confirm the requirements with CHFS before you file anything.

Step 2: Form Your Business Entity

Most home care operators form a limited liability company, and the process is straightforward. File Articles of Organization (Form KLC, Profit Limited Liability Company) with the Secretary of State for a $40 filing fee. Online filing through the One Stop portal is the practical route. Standard processing is usually the same day, but it can take up to three business days. Online filings take effect at the date and time of filing.

Your name must contain “limited liability company,” “limited company,” “LLC” or “LC.” If you abbreviate “limited company,” you must use “LTD CO.” The name must also be distinguishable from any name already on record with the Secretary of State. Kentucky has no expedited filing tier or expedited fee, so online filing is the fastest path.

If you want to lock in a name while you prepare your documents, a name reservation costs $15 and holds the name for 120 days.

A corporation is also an option. Articles of Incorporation (Form PAI, Profit Corporation) carry a $50 filing fee. Ask an attorney or CPA which structure fits your ownership and tax situation, since the choice affects how income is taxed.

Step 3: Appoint a Registered Agent and Confirm Your Registered Office

Every Kentucky entity must maintain a registered office and a registered agent at all times (KRS 14A.4-010). The registered office must be a Kentucky street address. Unless the agent signs the formation document, the appointment does not take effect until the agent delivers a written statement of acceptance to the Secretary of State. Missing this step can leave your entity without a valid agent on paper, so confirm it before you consider the filing complete. Changing the agent or office later costs $10.

Step 4: Register an Assumed Name If You Will Trade Under Another Name

If you will operate under a name different from your legal entity name, file a Certificate of Assumed Name (Form ASN). For corporations, LLCs and other registered entities, the filing goes to the Secretary of State for $20. The registration is effective for five years and is renewable. A sole proprietor files with the county clerk in the county where the individual resides under KRS 365.015(3). Entity filings also have a copy recorded with the county clerk of the registered office county, and county recording fees are set locally, so check with the clerk.

Step 5: Set Up Tax Accounts and Local Obligations

Kentucky has no statewide general business license. Registering your entity or an assumed name is a filing, not a license. You still need to register with the Kentucky Department of Revenue, which uses Form 10A100 through MyTaxes.ky.gov. Plan for these ongoing obligations:

• Sales tax. Kentucky’s state sales tax rate is 6%, and there are no local sales taxes. The tax reaches about 50 services, so you should confirm with the Department of Revenue whether any service you plan to sell is taxable. Do not assume that personal care services are exempt or taxable without checking. The sales tax permit page is at revenue.ky.gov.
• Limited Liability Entity Tax. LLCs and corporations owe LLET, with a $175 minimum if Kentucky gross receipts or gross profits are $3 million or less. A sliding scale applies between $3 million and $6 million. Above $6 million, the tax is the lesser of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits.
• Income tax. An LLC’s income passes through to its members and is taxed at the 3.5% flat individual rate for 2026. A corporation pays a 5% flat rate on its income, plus LLET.
• Annual report. Your $15 annual report is due June 30 every year. The filing window opens January 1. A domestic entity that misses June 30 is administratively dissolved.
• Local occupational license tax. Kentucky has 120 counties and about 420 cities. Cities, counties and school districts may levy occupational license taxes on payroll, net profits or gross receipts. Because a home care agency has employees, check the occupational license tax district for the city and county where you operate. Each one runs its own forms and revenue office.

Step 6: Build a Staff Screening and Training Process

Staff screening is where many new agencies run into trouble, because the requirements apply before a caregiver sees a client. Under KRS 216.713, every staff member needs:

• A criminal background check
• An abuse and misconduct registry check
• A tuberculosis risk assessment

Staff who care for clients with dementia symptoms also need dementia training. That means 6 hours of approved dementia training within the first 60 days, followed by 3 hours of training each year. Confirm with CHFS exactly when the 60 day period starts for each caregiver and which trainings qualify as approved.

Track every screening result and training date in one spreadsheet, with a column for expiration or due dates. Auditors and surveyors look for records, not verbal assurances.

Step 7: File Your Certification Application

Submit your application to the CHFS Office of Inspector General and pay the $500 initial fee to the Kentucky State Treasurer. The review does not require an on-site visit under KRS 216.712(4). Because the processing timeline is not a fixed figure you can plan around, ask the Office of Inspector General for its current turnaround before you commit to a launch date. Keep copies of everything you submit.

If your business will have Kentucky branch offices, you need only one certificate for the parent agency under KRS 216.712(1). Do not file a separate certificate for each branch. Confirm with CHFS how branch offices should be listed on the application.

Step 8: Maintain Your Certification with Annual Recertification

Recertification costs $350 each year and must be filed at least 60 days before your certificate expires. Put the expiration date and the 60 day filing deadline on your calendar as soon as the certificate is issued. A lapsed certificate can stop your operations, so treat this date like a payroll deadline.

Common Mistakes to Avoid

• Treating the certificate as a business license. It is a personal services certification, and you still have to handle entity filings, tax registration and local licenses.
• Relying on the three client exclusion without checking. The exclusion is tied to individual caregivers and their client counts. Confirm it with CHFS before you structure your staffing around it.
• Using a post office box for the registered office. Kentucky requires a street address.
• Using the wrong form or name. An LLC name must include an approved designation, and the formation form must match your entity type.
• Skipping the local occupational license check. Many cities and counties tax payroll or net profits, and each one has its own process.
• Letting screening or training lapse. Dementia training and registry checks are tied to specific deadlines, so track them as carefully as payroll.
• Missing the June 30 annual report. A missed filing can lead to administrative dissolution, even if you are otherwise compliant.
• Assuming sales tax does not apply. Confirm with the Department of Revenue which of your services are taxable.

What Results to Expect

Completing these steps may help position your agency to operate within Kentucky’s personal services framework. Certification does not guarantee client volume, reimbursement or any specific business outcome. Results will depend on your local market, your staffing, your service mix and how consistently you keep your filings current. Many new agencies find that their first year is shaped more by staffing and scheduling than by paperwork.

Where to Get Help

These official and public resources cover most of the filings in this guide:

• Kentucky Secretary of State, Division of Business Filings: sos.ky.gov
• Kentucky One Stop Business Portal for new formations: onestop.ky.gov
• Kentucky Department of Revenue: revenue.ky.gov
• Kentucky Small Business Development Center: kentuckysbdc.com
• U.S. Small Business Administration, Kentucky district: sba.gov

For the CHFS certification process, contact the Office of Inspector General directly. For anything involving Medicaid, skilled care, multiple owners or a mixed service model, a Kentucky attorney and a CPA can review your plan before you file. This article is informational only and is not legal or tax advice.