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Open A Company of Day Care and Elderly Care

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Category : > New Business Setup
Posted On : Mon Sep 19th,2016

How To Start A Company of Day care and Elderly Care?



An Ultimate Guide To Open A Company of Day care and Elderly Care



Day care and elderly care needs have been on a rise in the USA. Many parents place their offspring in day care due to the need to work or educate themselves. Day care centers provide a safe and secure place for infants, toddlers and small children. The need for adult day care is growing, with the growing aging population in the United States, Adult day care is essentially the same as child day care, except that it's for adults. These centers provide specialized care for infants, toddlers and elderly adults and can provide these adults with the medical care they need and the supervision they need.



  • Do a thorough & proper research of the business you want to open. Make a visit to your area, assess your locality needs whether it would be feasible to open the day sand elderly care facilities there, needs and requirements of the area.
  • Contact your area State Health and Human Services Agency to know your locality need for adult care.
    Do competitors’ analysis: you can do so again by visiting the different day care centres and groups of people.

    You should also know the rules and regulations of your particular state to start business, and you can contact with the Secretary of State, Division of Corporations or your county clerk's office.
  • You should seek business training and courses in the area of business you want to operate. Both elderly and infants day care centres require the business owner to have proper training and skills to operate the same.
  • Write a business plan that contains the requirements of the business, contents of the business according to market.  A business plan contains market research that highlights population andf trends, other services in the area, financing sources, obstacles and barriers. Business plan also includes other services that will be offered like bath/ shower, maids for toddlers in case of day care and medical, rehabilitation services in case of elderly care.
  • Advertise your services: This can be done through advertisements, distributing brochures, newspaper ads, etc. “Set up a Social Media pages that says your business will be coming soon. Tell everyone you know. Make a website and get some pictures on it. You can also offer to register and pay online.

  • Choosing a location: The location of the building strongly influences a business, as well as potential service users. Major consideration must be given to the safety of the surroundings (traffic, crime) and the reputation of the building and the area.

  • Obtain Finance for your business: Now you have all prepared for the basic needs, its time to decide on the means to finance your business. You will be needing some form of capital either it comes from your personal savings or debt financing. A small term loan would serve the purpose. This is the type of loan that is generally used to finance day-to-day expenses such as inventory, payroll, and unexpected or emergency items. Short-term loans are usually for a one-year term or less, and can include revolving lines of credit or credit cards.


Further requirements relating to day care business:


  • Qualification of child care provider is an important thing.  Child care providers should meet training requirements and attend child care classes.
  • Inquire about how many children you can provide day care services for, meal requirements, nap time requirements, accident or injury reporting requirements, and if you want to care for special needs children, any additional licenses or training you will need.
  • Purchase indoor and outdoor toys, changing tables, cleaning supplies, storage equipment and decorative items. Purchase new items or find gently used items that pass safety requirements.

Further requirements relating to elderly care business:

  • National Association of Adult Day care NASDA provides the guidelines to start the elderly day care and requirements that need to be followed. NADSA recommends a minimum staff-to-participant ratio of one to six. This ratio can be even smaller, depending upon the level of participant impairment.





  • Business Name Registration- A company name should be registered to start a business, if you are using it  to advertise. You can incorporate the company as a Sole Proprietorship, Corporation, Limited Liability Company or a Partnership.

  • Certificate of Occupancy should apply with the building department.
  • License for commercial vehicle, if you offer transportation.
  • Elderly clearance certificate.
  • Sales tax license to collect sales tax from your customers, if you are selling taxable items. You can either consult with your CPA or call to the Department of Revenue of your state, if you need to obtain one for your new company.
  • Registration of unemployment and withholding numbers, if you are hiring employees.
    Employer Identification Number (EIN) to hire employees, If you are registering your company a Corporation, Limited Liability Cdompany, Partnerships or hiring employees for your Sole Proprietorship.
  • Workers' compensation and disability insurances, if you are hiring employees.
  • Health insurance for your employees
  • General child care license
  • Music license (If applicable)


Can a Non US Resident Open a Company?

Yes, A Non US resident can start a company for Day Care and Elderly Care in the United States.


The Author of this article is a CA (Chartered Accountant Finalist) and APFA (Associate Public Finance Accountant).

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