Starting a care agency

[AlexTrial]

Hello Everyone. I'm quite new here, so I do apologize if I got it wrong, perhaps asking a question which does not fit in here.
I'd appreciate any guidance I could get, however, regarding where exactly and how to find out all about starting a care agency with two more partners, which I was offered to do.

Before I agree or disagree, I'd very much like to know all about legal requirements, about the most suitable company structure for this partnership, about financial obligations to meet, such as taxes, fees, insurances, etc.

Everything I can find out will help me to see a clearer picture through numbers, so I'd very much appreciate any help. Thank you!

 

[NickGrogan]

What do you know about care agencies?

What is each partner bring to the business?

 

[Deleted member 335660]

Hello Everyone. I'm quite new here, so I do apologize if I got it wrong, perhaps asking a question which does not fit in here.
I'd appreciate any guidance I could get, however, regarding where exactly and how to find out all about starting a care agency with two more partners, which I was offered to do.

Before I agree or disagree, I'd very much like to know all about legal requirements, about the most suitable company structure for this partnership, about financial obligations to meet, such as taxes, fees, insurances, etc.

Everything I can find out will help me to see a clearer picture through numbers, so I'd very much appreciate any help. Thank you!

Hi Alex,

Firstly I assume you already are in the care industry and have all the appropriate qualifications.

In terms of company structure you should look at making it a legal company structure and there is a “community interest “ form of company structure that may be best. Check out companies house.

Any company has to account for VAT, Employee taxes and Corporation Tax ( tax on profit) and you would do well to engage a professional accountant.

Depending on the care area you may well need to get approval from the Care Quality Commission.

You will need insurance like third party liability and may be employee insurance.

So you need to do some research yourself in these areas.

 

[Frank the Insurance guy]

You are right to seek out as much information as you can before agreeing to go ahead with this.

With regards to Insurance, there are specialist brokers that you can talk to to get a quotation, such as:
https://www.locktoninternational.com/gb/healthcare
https://www.towergateinsurance.co.uk/care-and-medical-insurance

They will need your financial forecasts (income for each type of service/work undertaken), wagerolls etc together with details of experience and qualifications in order to provide a quotation.

 

[AlexTrial]

What do you know about care agencies?

What is each partner bring to the business?

Well, personally, not much, above the basic principles and structures. One of the proposed partners claims to know all that is necessary, and presents it as "easy-peasy", has the required qualification, but has never actually worked as a manager at any agency. The other knows more or less as much as I do (or don't, depending how you take it).
The proposed contribution is money, in equal parts and work, but no talks about precise tasks or areas of expertise took place, so it is a bit unclear what do we expect from each other, except to "do our best"

 

[AlexTrial]

Hi Alex,

Firstly I assume you already are in the care industry and have all the appropriate qualifications.

In terms of company structure you should look at making it a legal company structure and there is a “community interest “ form of company structure that may be best. Check out companies house.

Any company has to account for VAT, Employee taxes and Corporation Tax ( tax on profit) and you would do well to engage a professional accountant.

Depending on the care area you may well need to get approval from the Care Quality Commission.

You will need insurance like third party liability and may be employee insurance.

So you need to do some research yourself in these areas.

Hello Trevor, thank you very much! I've never heard of a “community interest “ form, but I'll look it up, sounds interesting. As the plan is to offer domiciliary care, as well, besides live-in care, you are right, an approval from CQC is necessary. Also, would you have any suggestion regarding the choice of a professional accountant?

 

[AlexTrial]

You are right to seek out as much information as you can before agreeing to go ahead with this.

With regards to Insurance, there are specialist brokers that you can talk to to get a quotation, such as:


They will need your financial forecasts (income for each type of service/work undertaken), wagerolls etc together with details of experience and qualifications in order to provide a quotation.

Thank you very much Frank, for your answer and the links. These will certainly get me a step closer to the necessary information.

 

[Mark T Jones]

Well, personally, not much, above the basic principles and structures. One of the proposed partners claims to know all that is necessary, and presents it as "easy-peasy", has the required qualification, but has never actually worked as a manager at any agency. The other knows more or less as much as I do (or don't, depending how you take it).
The proposed contribution is money, in equal parts and work, but no talks about precise tasks or areas of expertise took place, so it is a bit unclear what do we expect from each other, except to "do our best"

Sorry, but this seems to have been written in red flag semaphore.

There is so much to pick up on!

First rest assured it is far from easy peasy - there is a hell of a lot involved the fact that you are being told its easy suggests that they are either clueless or dishonest.

What do you actually want your contribution/role to be?

Discussions at this point should be all about contributions, roles and responsibilities, culminating in a comprehensive shareholders' agreement if they don't want those discussions, put your running shoes on.

 

[MattRumbelow]

I talk to a lot of care companies (my company offers protection solutions and social care is a sector with a surprising amount of violence and injury) and I would say it is very difficult.

There is currently not a lot of money in the sector, and there is a huge hiring gap due to carers being worked into the ground. What I would suggest is how being a 'good' company to work for, and a successful company can go hand in hand. I wrote a case study on a care company that offers comprehensive training, shadowing periods, etc. and their staff stick around for the long term. The demand will always be high, so if you're one of the good ones, I'm told you can do well –but it's hard work.