How to Start a Home Care Agency in Delaware: DHCQ Personal Assistance Services Agency License, $250 Application and $100 Annual Fee

A personal assistance services agency (PASA) in Delaware provides non-medical, hourly personal care services such as assistance with activities of daily living, companion care, and household support. If you plan to operate one, you will need a license from the Delaware Division of Health Care Quality (DHCQ) before you can legally provide these services. This guide walks you through the exact steps, costs, and timelines required to launch a compliant home care agency in Delaware.

Why Delaware Requires a PASA License

Delaware classifies personal assistance services as a regulated business under Title 16 of the Delaware Code, Section 122(3)x and the Delaware Administrative Code, Title 16, Section 3345. The license protects consumers by ensuring your agency meets minimum standards for liability insurance, staff screening, and operational compliance. Each office location requires its own separate license, so if you operate from multiple sites, plan for multiple applications.

Materials and Requirements You Will Need

Before you file your PASA application with DHCQ, gather these items and arrange these prerequisites:

• Business Entity Formation. You will need a registered Delaware business structure. An LLC typically costs $110 to form through the Delaware Division of Corporations, or a corporation costs $109. Both require a registered agent with a Delaware street address.
• Delaware Business License. Apply through Delaware One Stop (https://onestop.delaware.gov) for a Division of Revenue business license. The annual fee is $75 for most service categories.
• Gross Receipts Tax Registration. As part of your business license, you will owe gross receipts tax on revenue. For personal services, the rate is 0.3983%, filed monthly or quarterly depending on your volume. New businesses file quarterly.
• Trade Name (DBA) if applicable. If you do business under a name other than your LLC or corporation name, register the trade name for a one-time $25 fee with the Division of Revenue through Delaware One Stop. The registration does not expire.
• Liability Insurance. The rule text we read calls for comprehensive general liability insurance of $1 million per occurrence and $500,000 single limit coverage. Check with DHCQ for the current requirement before purchasing.
• Criminal Background Check and Drug Testing Policies. Prepare documentation showing you have policies in place for criminal background screening of staff and drug testing compliance. You personally and all employees must pass background checks and comply with any drug testing protocols required by state law.
• Registered Agent. Maintain a Delaware registered agent (an individual resident of Delaware or a business entity) with a physical Delaware street address. You cannot use a PO box.
• Office Location in Delaware. Secure a physical office address in Delaware. This becomes your primary business location for licensing purposes.

Step-by-Step Instructions to Launch Your PASA

Step 1: Form Your Delaware Business Entity

Visit the Delaware Division of Corporations website at https://corp.delaware.gov/ and choose to form either an LLC or corporation. The Division recommends using the online eCorp Document Upload Service at https://icis.corp.delaware.gov/ecorp2 for fast processing.

For an LLC, file a Certificate of Formation. The filing fee is $110. Processing time varies with volume; standard turnaround is not published, but expedited options run from $50 (next business day) to $1,000 (one hour). Once your entity is approved, you receive a Certificate of Formation. Record the Delaware file number and entity name exactly.

An LLC owes an annual flat tax of $400 (under the 2026 change; confirm the current amount at https://corp.delaware.gov/) due each June 1, starting in 2027. You do not file a separate annual report as an LLC.

Step 2: Obtain Your Registered Agent and Office Address

Before you apply for any licenses, you must have a registered agent with a Delaware street address. The agent can be you (if you live in Delaware), an employee, or a registered agent service. Registered agent service prices vary by provider. Confirm the address in writing, as it becomes your official service address for legal notices and regulatory correspondence.

Step 3: Apply for a Delaware Business License

Go to Delaware One Stop at https://onestop.delaware.gov and apply for a Division of Revenue business license. Select the service category that matches your PASA business. The annual fee is $75 for personal services. The application requires your Delaware entity formation number, your registered agent, and your physical office address. You will receive a license number and a certificate. Keep this certificate; you will need it when you apply to DHCQ.

Step 4: Register a Trade Name (DBA) if Needed

If your PASA operates under a name different from your LLC or corporation name, register a trade name (also called a DBA or fictitious name) through Delaware One Stop. The one-time registration fee is $25. The registration does not expire and requires an active business license. For example, if your LLC is named "Sunrise Care LLC" but you advertise as "Sunrise Home Services," register "Sunrise Home Services" as a trade name.

Step 5: Secure Liability Insurance

Contact a business insurance broker and request a commercial general liability policy for a home care services agency. The rule text we read calls for $1 million comprehensive general liability per occurrence and $500,000 single limit coverage. Confirm the current DHCQ requirement before you buy, as it may be updated. Keep a copy for your PASA files; you will reference it in your DHCQ application.

Step 6: Prepare Background Check and Drug Testing Policies

Draft written policies stating that you and all employees must pass a criminal background check and comply with drug testing requirements per Delaware law. The policy should specify who conducts the screening, what criminal offenses disqualify a person, and how often testing occurs. DHCQ will review this as part of your license application. Consult a Delaware employment attorney if you are uncertain about legal compliance.

Step 7: Prepare Your PASA License Application for DHCQ

Contact the Delaware Division of Health Care Quality at https://dhss.delaware.gov/dhcq/ and request the Personal Assistance Services Agency license application form. You will submit the form with supporting documents including:

• Copy of your Delaware Certificate of Formation or incorporation
• Copy of your Delaware business license
• Certificate of liability insurance
• Written background check and drug testing policy
• Proof of registered agent
• Your physical office address in Delaware
• A management structure showing who will oversee the PASA
• Proof that you have completed any required training or certifications (if applicable)

Step 8: Submit Your Application and Pay the $250 Application Fee

Mail or submit your completed application to DHCQ along with the nonrefundable $250 application fee. Make payment as instructed by DHCQ (check, credit card, or electronic transfer, depending on their current process). The application fee is nonrefundable even if DHCQ denies your application. Keep a copy of your submission for your records and note the date of submission.

DHCQ does not publish a standard review time here, so ask DHCQ for its current timing. If DHCQ has questions or requests additional information, they will contact you. Respond promptly to any requests to avoid delays.

Step 9: Receive Your PASA License and Pay the Annual $100 Fee

Once DHCQ approves your application, you receive a Personal Assistance Services Agency license. With the license comes the requirement to pay an annual licensure fee of $100 due each year to keep your license current. The fee is nonrefundable. Mark the renewal date on your calendar so you do not miss the deadline and risk operating without a valid license.

Step 10: Arrange Direct Care Worker Licensing (if applicable)

A direct care worker who is under contract to your agency (rather than employed by it) pays a $75 Division of Revenue direct care worker license, applied for through Delaware One Stop (30 Del. C. 2301(a)(26)); check with the Division of Revenue how your staffing model is treated. If a direct care worker has receipts under $10,000 in a year, the fee is reduced to one-fourth of the standard fee (approximately $19). Confirm current fee amounts with the Division of Revenue.

Tips to Avoid Common Mistakes

• Do not confuse PASA with home health agency licensing. Home health agencies (which provide skilled nursing or home health aide services) require a separate DHCQ license with different fees ($500 application, $300 annual) and requirements. A PASA license does not authorize nursing or medical services. Understand the distinction before you apply.
• Do not skip the liability insurance step. Required liability insurance is part of PASA licensing, so confirm the requirement with DHCQ and have coverage in place before you submit your application.
• Do not use a PO box as your registered agent address. Delaware law requires a physical street address. If you work from home, you may list your home address if you are a Delaware resident, but verify this with your registered agent service provider.
• Do not hire direct care workers without confirming they have or will obtain a direct care worker license. Operating with unlicensed workers exposes your agency to fines and legal liability. Build worker licensing costs into your startup budget.
• Do not operate a second office location without a second PASA license. Each office requires its own license, application fee, and annual fee. Attempting to run two locations under one license violates Delaware law.
• Do not miss your annual license renewal deadline. DHCQ will not automatically remind you. An expired license means you cannot legally operate. For a violation, DHCQ may seek a civil penalty or impose an administrative penalty up to $5,000, and under the PASA rule each day a violation continues counts separately.
• Do not overlook gross receipts tax filing deadlines. Even if your PASA is profitable, you must file gross receipts tax returns on the schedule required by the Division of Revenue (monthly or quarterly for new businesses). Failure to file incurs penalties and interest.

Expected Results and Timeline

A typical order of steps follows. The week ranges are illustrative planning estimates, not agency timelines.

• Week 1 to 2: Form your LLC or corporation ($110 fee; the Division of Corporations publishes no standard processing time).
• Week 2 to 3: Secure your registered agent and office location.
• Week 3 to 4: Apply for your Delaware business license and DBA if needed (check processing time with the Division of Revenue).
• Week 3 to 4: Obtain liability insurance.
• Week 4 to 5: Finalize your background check and drug testing policies with legal review if needed.
• Week 5 to 6: Submit your PASA application to DHCQ with the $250 application fee and all supporting documents.
• Week 6 to 10: DHCQ reviews your application.
• After DHCQ approval: You receive your PASA license, pay the $100 annual fee, and are cleared to begin operations.

Total upfront costs for licensing are approximately $250 (application) + $110 (LLC formation) + $75 (business license) + $25 (DBA if needed) + $100 (annual PASA fee) = $535 without the DBA or $560 with it in year one, plus the annual LLC tax and liability insurance (cost depends on your coverage and claims history). Direct care worker licenses are $75 each (see Step 10).

Additional Considerations

Delaware has no state sales tax, but your PASA owes gross receipts tax on all revenue from personal care services. The rate for services is 0.3983%. You file this tax monthly (with a $100,000 monthly exclusion) or quarterly (with a $300,000 quarterly exclusion for new businesses) to the Division of Revenue. Budget for this tax in your pricing.

If your PASA is located in an incorporated municipality, check with the town for any local business licenses or municipal permits required. Some towns in Delaware charge additional fees on top of the state business license.

Your LLC will owe an annual flat tax of $400 (due June 1 each year, starting in 2027, under the current 2026 law; confirm the amount at https://corp.delaware.gov/). This is separate from gross receipts tax and the PASA annual license fee.

Disclaimer and Professional Guidance

This article is informational and does not constitute legal, tax, or accounting advice. Delaware law and DHCQ regulations are complex and subject to change. Before you launch your PASA, consult with a Delaware business attorney to review your entity formation, insurance coverage, and regulatory compliance. A CPA or accountant familiar with Delaware gross receipts tax will help you understand your tax obligations and avoid costly mistakes.

For the most current PASA licensing requirements, fees, and application procedures, contact the Delaware Division of Health Care Quality directly at https://dhss.delaware.gov/dhcq/ or call their office. For business formation and gross receipts tax questions, contact the Delaware Division of Corporations at https://corp.delaware.gov/ and the Division of Revenue at https://revenue.delaware.gov/.

The Delaware Small Business Development Center (https://delawaresbdc.org/) also offers free consulting and resources to new business owners in Delaware and can help you with business planning, marketing, and regulatory navigation.