How to Start a Home Health or Hospice Agency in Utah: DHHS Licensing and Fees
How to Start a Home Health or Hospice Agency in Utah: DHHS Licensing and Fees
If you want to start a home health agency business in Utah, the state licensing step runs through the Utah Department of Health and Human Services (DHHS), specifically its Division of Licensing and Background Checks (DLBC). Hospice agencies are licensed through the same division. Your business entity, local business license, and tax registrations are separate filings with other agencies, and they need to happen in the right order. This guide walks through each step, lists the fees we could verify, and names the questions you need to put to DLBC before you budget.
This article is informational content, not legal, tax, or healthcare licensing advice. Entity choice, tax treatment, and agency compliance are complex. Talk with a qualified attorney and a CPA before you file, and confirm every fee and requirement with the agency named in each step.
What you need before you start
Gather these items before you file anything. Several of them take longer to get than the filings themselves.
- A clear agency type. Decide whether you will operate a home health agency, a hospice agency, or both. The two can carry different facility rules, so ask DLBC which rules apply to your type.
- A business name you have checked. Search the Division of Corporations and Commercial Code database at businessregistration.utah.gov before you commit to a name, including any trade name you plan to use.
- A Utah street address for your registered agent. Every registered entity must name a registered agent with a Utah street address. A PO box may be listed only in addition to a street address.
- A registered agent. The agent may be an individual or a business entity registered with the Division and in good standing, or a commercial registered agent. Commercial registered agent registration costs $52.
- A roster of people who need background checks. List every owner, administrator, and staff member who will need clearance through the Direct Access Clearance System (DACS). Ask DLBC which individuals must be cleared.
- Entity documents and banking. You will need an operating agreement (for an LLC) or bylaws (for a corporation), a federal Employer Identification Number (EIN) from the IRS, and a business bank account.
- A staffing and administration plan. Know who will serve as administrator and clinical manager, and ask DLBC what qualifications the facility rules require for those roles.
- A budget that accounts for the fees below. Plan for state entity fees, any name reservation or expedited fees, the DLBC licensing fees, and the cost of background checks.
Step-by-step: forming and licensing your agency
Work through these steps in order. The entity and local steps usually come first because DLBC and the banks will ask for those documents.
Step 1: Form your entity with the Division of Corporations and Commercial Code
Most owners form an LLC. The formation document is a Certificate of Organization, and the filing fee is $59. You file through the Utah Business Registration System at businessregistration.utah.gov, logging in with UtahID. Most online filings are processed and approved instantly. Filings that need manual review are stated as 2 to 4 business days from receipt, and the Division has posted processing times of 7 to 10 business days during backlogs. Expedited processing is $75 per filing.
The LLC name must contain “limited liability company,” “limited company,” or an abbreviation such as “LLC,” “L.L.C.,” “L.C.,” or “LC.” The name must be distinguishable from existing entity, reserved, registered, and assumed names on the Division’s records, and it may not imply that your company is a state agency or political subdivision. If you need to hold a name while you finish other paperwork, a name reservation costs $22 and lasts 120 days.
If you prefer a corporation, the formation document is Articles of Incorporation, with the same $59 filing fee. The Division’s annual report or renewal for both LLCs and corporations costs $18. An LLC files its first renewal one year from its registration date and every year after that, with the renewal window opening 60 days before the anniversary. A late renewal fee of $10 applies. Utah has no separate LLC franchise tax, so the $18 renewal is the only recurring state filing cost for an LLC taxed by default as a partnership or sole proprietorship. Ask a CPA how your entity will be taxed before you choose between an LLC and a corporation.
Step 2: Name a registered agent
Name your registered agent in the formation filing. The agent must have a Utah street address, and by appointing one, your entity affirms that the agent has agreed to serve. If you use a commercial registered agent, expect the $52 registration cost noted above. Choose an agent you can reach during business hours, because the agent receives legal papers on your behalf.
Step 3: Register an assumed name (DBA) if you will operate under a different name
If your agency will do business under a name other than its legal name, file an Assumed Name (DBA) registration, also called a Business Name Registration. It costs $22 to register for a three-year term, and the renewal fee is shown on the Division portal. Unlike some states, Utah files this with the Division of Corporations and Commercial Code at the state level, not with the county. Start at commerce.utah.gov/corporations/business-entities/dba/.
Step 4: Obtain your local business license
Utah issues no statewide general business license. Registering your entity with the Division is a registration, not a license. Once you are registered, get a business license from the city or town where your agency is located or operating. If your location is outside any city or town, the county issues it. A city license does not transfer between cities, so if you move your office across a city line, you will need a new license from the new city. Before you sign a lease, ask the city or county whether the address allows a healthcare office. That question is about local zoning, and only the local government can answer it.
Step 5: Register with the Utah State Tax Commission
Register with the Utah State Tax Commission at tax.utah.gov. A separate Utah Sales Tax License is required for any seller with an established presence in Utah. Whether your agency needs one depends on what you sell, so confirm this with the Tax Commission. If you will hire employees, ask the Tax Commission and the IRS which employer accounts you need before your first payroll. Utah’s individual income tax is a flat rate, but confirm the current rate with the Tax Commission rather than relying on an older figure.
Step 6: Contact DLBC and apply for the health facility license
Call the DLBC Office of Licensing at 801-273-2994 before you submit anything. Ask these questions and write down the answers with the date and the name of the person you spoke with:
- Which facility rules apply to a home health agency, a hospice agency, or both?
- Does the agency need any approval beyond licensure before it can open or admit patients?
- What are the current year’s fee amounts, and how do the line items combine?
- Which individuals must complete DACS background checks, and how do they enroll?
- What is the current processing time for an application?
DLBC’s most recent fee schedule we could confirm covers the fiscal year from July 1, 2025 to June 30, 2026. It lists these amounts for home health and hospice agencies:
| Fee item (July 1, 2025 to June 30, 2026 schedule) | Amount |
|---|---|
| Base fee | $743.84 |
| Agency fee | $2,138.52 |
| Per branch location | $371.92 |
| One-time new provider fee | $1,069.26 |
We could not find a schedule for July 1, 2026 to June 30, 2027. Do not budget from the table above until DLBC confirms the current year’s amounts and tells you how the items combine for your agency.
Step 7: Complete background checks through DACS
Home health and hospice agencies use the Direct Access Clearance System (DACS) for background checks. Start the clearances for your owners and staff early, because you will generally want clearances in place before people begin working with patients. Confirm the enrollment steps and the cost with DLBC, since this guide does not list a DACS fee.
Step 8: Confirm approvals beyond licensure, then open
Before you open, ask DLBC in writing or by email whether any approval beyond licensure is required. Do not assume the license alone lets you begin care. If you plan to serve Medicare patients, understand that Medicare certification is a separate federal process. A DLBC license does not make your agency Medicare certified, so plan that application as its own project and ask a healthcare attorney or consultant how the sequence should work.
Fees at a glance
| Item | Agency | Amount |
|---|---|---|
| Certificate of Organization (LLC) | Division of Corporations and Commercial Code | $59 |
| Articles of Incorporation (corporation) | Division of Corporations and Commercial Code | $59 |
| Expedited processing, per filing | Division of Corporations and Commercial Code | $75 |
| Name reservation (120 days) | Division of Corporations and Commercial Code | $22 |
| Annual report or renewal (LLC or corporation) | Division of Corporations and Commercial Code | $18 per year, $10 late fee |
| Assumed name (DBA) registration | Division of Corporations and Commercial Code | $22 to register for a three-year term; check the Division portal for the renewal fee |
| Commercial registered agent registration | Division of Corporations and Commercial Code | $52 |
| Home health and hospice agency fees (July 1, 2025 to June 30, 2026) | DLBC | $743.84 base, $2,138.52 agency, $371.92 per branch, $1,069.26 one-time new provider |
| Local business license | City, town, or county | Confirm with the local government |
| Sales tax license, if required | Utah State Tax Commission | Confirm with the Tax Commission |
| DACS background checks | DLBC | Confirm with DLBC |
Common mistakes to avoid
- Looking for a state business license. Utah has none. The license you need is the city, town, or county license, and it does not carry over if you move to another city.
- Signing a lease first. Confirm local zoning and the city or county license before you commit to an office.
- Budgeting from old fee numbers. The DLBC schedule we found covers July 2025 to June 2026. Get the current year’s amounts from DLBC.
- Treating a PO box as your address. Your registered agent needs a Utah street address, and a PO box can only be added in addition to it.
- Hiring before clearances are complete. Start DACS enrollment early, and do not assume a clearance is instant.
- Assuming Medicare comes with the state license. Medicare certification is separate and federal.
- Missing the renewal window. The LLC renewal window opens 60 days before your anniversary, and a late renewal costs $10 more.
- Filing the DBA with the county. Utah files assumed names with the state Division.
- Assuming a name check protects your brand. A name that is available on the Division’s records may still conflict with a trademark or another business’s rights. Ask an attorney to review your name before you invest in signage and marketing.
What to expect
A well-prepared application can help reduce back-and-forth with state offices, because the entity, tax, and local documents give DLBC and your bank a consistent set of facts about your agency. Results vary, though, and we cannot promise a specific timeline or approval outcome for DLBC. The Division’s posted processing times are the best published guide we have for entity filings, and DLBC has not confirmed a processing time for this guide. Ask for one when you call.
Be cautious with any marketing claim about outcomes for patients or families. Describe your services in plain terms, such as the care types you offer and the hours you cover, and avoid promises about health results. If you plan to publish claims about your care, have a healthcare attorney review them first.
Next steps and resources
- Utah Division of Corporations and Commercial Code: commerce.utah.gov/corporations, with filings at businessregistration.utah.gov
- Utah State Tax Commission: tax.utah.gov
- Sales tax account setup: Taxpayer Access Point (TAP)
- DLBC Office of Licensing: 801-273-2994
- Utah Small Business Development Center: utahsbdc.org
- U.S. Small Business Administration, Utah district: sba.gov/district/utah
Confirm every amount above on the agency page or by phone before you budget. If your structure involves multiple entities, a management company, or a hospice and home health combination, consult an attorney and a CPA before you file. Nothing in this article is legal or tax advice.