How to Start a PAS Agency in Texas: 9 Licensing Steps

To start a PAS agency in Texas, you need a Home and Community Support Services Agency (HCSSA) license with the Personal Assistance Services (PAS) category. The Texas Health and Human Services Commission (HHSC) issues this license.

You must appoint a qualified administrator and alternate administrator. Both must complete the required training before you apply through the Texas Unified Licensure Information Portal (TULIP). The initial license costs $2,625 and lasts three years.

After your license is issued, you can begin serving clients. Within six months of its effective date, a PAS-only agency must admit at least one client, provide services and request its initial state survey.

This guide explains the nine licensing steps, how to prepare for your first client, and mistakes that can delay your launch. If you are comparing PAS with home health or hospice, start with our guide to starting a home care agency in Texas.

Texas PAS Licensing at a Glance

License	HCSSA license with the PAS service category
Regulator	Texas Health and Human Services Commission (HHSC)
Where you apply	TULIP, the state’s online licensing portal
State license fee	$2,625 for the initial three-year license
Application timing	Up to 45 days for review; up to 45 more for issuance once complete and requirements are met
Required training	Presurvey CBT for both administrators; required administrator training before appointment
After licensure	Serve at least one client and request the initial survey within six months of the license’s effective date
Renewal	Every three years; $2,625 for a three-year renewal

Source: Compiled by 123 Consulting Solutions from Texas licensing rules and HHSC’s licensing guidance.

What Is a PAS Agency in Texas?

A PAS agency is a licensed non-medical home care business. It helps people with personal care and daily tasks so they can live as independently as possible.

PAS stands for Personal Assistance Services. It is a service category under the Texas HCSSA license. Clients may include older adults and people with disabilities who need regular help at home.

What Services Can a Texas PAS Agency Provide?

A PAS agency can help with personal care tasks such as:

Bathing, dressing, and grooming.
Eating and using the toilet.
Walking and moving from a bed to a chair.

Care may also include meal preparation, light housekeeping, errands, transportation, companionship, and medication reminders, based on the client’s needs and service plan.

Your services should respect each client’s privacy, choices, and routines. A good service plan explains what help the client needs and how your staff will provide it.

Medication reminders differ from giving medication. Some health-related tasks require an RN’s assessment, delegation, or other specific safeguards. A PAS license alone does not authorize every nursing task.

Use Texas’s PAS service rules to check which tasks your staff may perform. Those rules also cover physician-delegated tasks and special requirements for feeding or giving medication through a permanently placed feeding tube.

Is a PAS License the Same as a Home Health License?

No. PAS and home health are different service categories under the HCSSA license. PAS focuses on personal assistance. Home health covers skilled care, such as nursing and therapy, with additional staffing and service rules.

A PAS-only agency does not need a supervising nurse to get licensed. It still needs qualified leaders and a qualified person to supervise its services.

What License Do You Need to Open a PAS Agency in Texas?

You apply to HHSC for an HCSSA license with the PAS service category. People often call this a “PAS license” or a “non-medical home care license.”

The initial state license fee is $2,625 for three years. A three-year renewal also costs $2,625. See 26 TAC §558.3 for the fee schedule.

Texas law lists limited licensing exemptions. Check the rules before assuming your business qualifies for one.

How Do PAS Agencies Get Paid in Texas?

PAS agencies may receive payment from clients and families, long-term care insurance, veterans’ programs, Medicaid, and other approved payers. Each option has its own approval, billing, and payment rules.

Choose your likely payers before you set rates or buy software. Your choices affect the contracts you need, how you bill, and how long you may wait for payment.

Payment Options for Texas PAS Agencies
Payer	How payment works	What to check before accepting clients
Private pay	Clients or families pay your agency directly.	Agree on rates, payment dates, deposits, and cancellation terms before care starts.
Veterans’ programs (VA)	VA may authorize care; some veterans use pension benefits to pay privately.	VA-authorized care needs separate provider approval and authorization. Pension benefits are a different payment path
Long-term care insurance	The insurer may reimburse the family or pay the agency, depending on the policy.	Check covered services, claim forms, waiting periods, and who is responsible for paying your invoices.
Medicaid fee-for-service	The agency bills under an approved Medicaid program and applicable HHSC contract.	Complete enrollment and required contracts. Check service authorizations, rates, EVV, and billing rules.
Medicaid managed care	Health plans, including those in STAR+PLUS, pay for authorized services for members.	Complete Medicaid enrollment and the plan’s contracting process. Check rates and service authorization rules.
Workers’ compensation	An insurer may authorize care for an injured worker.	Confirm approved services, rates, billing instructions, and payment terms with the insurer before taking the case.

Source: Compiled by 123 Consulting Solutions from Texas Medicaid enrollment guidance, VA provider information, and general payment arrangements. Confirm each payer’s terms.

For private-pay pricing, read our guide to what Texas home care agencies should charge.

Should a New PAS Agency Start With Private Pay or Medicaid?

Private-pay clients pay your agency directly at an agreed rate. You can serve them after licensure once your staff and care systems are ready.

Medicaid requires separate enrollment and any needed program or health plan contracts. It can help you reach more clients, but joining a network does not guarantee referrals.

At 123 Consulting Solutions, we recommend including Medicaid enrollment and contracting in your launch plan, even if your first clients will pay privately. Check payer rates against your costs before accepting a contract.

How Much Does It Cost to Start a PAS Agency in Texas?

At 123 Consulting Solutions, we recommend a total startup budget of $10,000–$15,000 for a lean, independent PAS agency. This includes setup costs, early marketing, and a payroll reserve.

Plan how you will divide that budget among licensing, business registration, training, policies, insurance, recruiting, marketing, and wages. You may need more if you rent an office, hire managers, or take longer to find clients.

For a full breakdown, read what it costs to start a home care business in Texas.

How to Start a PAS Agency in Texas in 9 Steps

The nine steps below take you from choosing your leaders to submitting your license application.

Choose your administrator and alternate administrator.
Choose your agency’s name.
Register your business.
Get your EIN.
Set up your office and business contact details.
Complete HHSC’s presurvey training.
Complete administrator training and appoint your leaders.
Prepare your application documents.
Apply through TULIP and pay the license fee.

You can work on several steps at the same time. First-time administrators must finish their eight hours of required training before formal appointment. Complete Steps 1–8 before submitting your application.

Step 1: Choose Your Administrator and Alternate Administrator

Every Texas PAS agency needs an administrator to manage the business and an alternate to take over when that person is away. The owner may fill either position if qualified.

For a PAS-only agency, each person must meet at least one of these routes under 26 TAC §558.244:

A high school diploma or GED, plus at least one year of experience or training caring for people with functional disabilities.
Two years of full-time study in a health-related field at an accredited college or university.
A license as a physician, RN, social worker, therapist, or nursing home administrator, plus at least one year of management or supervisory experience in a health-related setting.
A high school diploma or GED, plus at least two years of management or supervisory experience in a health-related setting.

Health-related settings include home care agencies, hospitals, nursing facilities, and hospices. “Functional disabilities” means limitations that affect a person’s ability to carry out daily tasks.

Both people must also meet the English, training, criminal-history, and other eligibility conditions in the rule. Keep records showing how each person qualifies.

Identify your two candidates now. Complete the required training in Steps 6 and 7 before you finish their appointments and apply.

Review HHSC’s administrator qualification guidance before choosing your leaders.

Step 2: Choose Your Agency’s Name

Choose a name that is easy to say, spell, and remember. Words such as “home care” or “personal care” can help clients understand your services.

Before filing, check state name availability, search for similar businesses online, and look for a suitable website address.

At 123 Consulting Solutions, we recommend waiting until your business registration is accepted before paying for a logo, signs, or printed materials. If the state rejects your name, you may have to pay to change those items.

The Texas Secretary of State explains that an early name check is not final approval. State approval also does not settle another business’s rights to a name.

Step 3: Register Your Business

Choose your business structure before applying for the license. Many owners choose a limited liability company (LLC), which can help protect personal assets from business debts and claims.

To form a Texas LLC, file a Certificate of Formation, Form 205, with the Secretary of State. The filing fee is $300. The form also requires a registered agent and a physical registered office in Texas to receive legal papers.

Corporations and sole proprietorships have different registration and tax rules. Ask an accountant or business attorney which structure fits your plans.

Keep the required Secretary of State and Comptroller records current. Complete state reports and pay any taxes due so registration problems do not hold up your license.

Use the same legal business name on your formation records, EIN, bank account, and TULIP application. If your LLC uses another agency name, check the state’s assumed-name filing requirements.

Step 4: Get Your EIN From the IRS

Get an Employer Identification Number (EIN) directly from the IRS. It is free and serves as your business’s federal tax ID.

You will use it for payroll, taxes, banking, and your application records. If you are forming an LLC or corporation, complete that registration before applying for the EIN. Save the IRS confirmation.

Step 5: Set Up Your Office and Business Contact Details

Your home care company needs a permanent physical place of business in Texas where you direct its services. A mailbox or virtual office does not qualify.

HHSC’s HCSSA FAQ allows a home address when you actually run the agency from there. Check zoning rules and any lease or homeowners association restrictions.

Whether you work from home or rent an office:

Keep client and personnel records secure.
Make paper and electronic records available to HHSC surveyors.
Provide a safe place for surveyors to work.

We also recommend a separate business phone number and an email address using your website domain. These help clients reach the agency and keep business messages separate from personal messages.

Step 6: Complete HHSC’s Presurvey Training

Your administrator and alternate must each complete HHSC’s presurvey computer-based training (CBT) before you apply.

For a PAS-only agency, each person takes Modules 1, 2, and 3. The modules cover the licensing process, general agency rules, and PAS requirements.

Each module takes about 30 minutes to an hour. After the quiz, print and sign the certificate. Keep copies and upload the signed certificates with your application.

Step 7: Complete Administrator Training and Appoint Your Leaders

A first-time administrator and alternate must each complete eight clock hours of required agency administration training before appointment. The training must fall within the 12 months before the appointment date.

Under 26 TAC §558.259, each must also complete 16 more hours by the end of the first 12 months after appointment. That makes 24 hours in total.

After the first year, each must complete 12 hours of continuing education in each following 12-month period. Keep certificates and records of course topics, dates, hours, and the training provider.

Once the candidates meet the qualifications and required pre-appointment training, formally appoint them. Name the alternate in writing.

Returning administrators may have different training requirements based on their history. Check HHSC’s qualification guidance and continuing education rules.

Complete Your Administrator Training With 123

Our online administrator courses cover the eight-hour initial course, the additional 16 hours, and annual continuing education. Choose the course that matches your stage.

Step 8: Prepare Your Application Documents

Use HHSC’s TULIP document checklist and the instructions in your application. For a PAS-only startup, gather the applicable documents, including:

Your tax ID document.
Signed presurvey CBT certificates for both administrators.
Required administrator training records.
An organizational chart showing names and responsibilities.
A plan for the orderly transfer of care if the agency closes or cannot continue services.
A management company agreement, if you use one.

TULIP may ask for more documents based on your application. Make sure names, addresses, ownership details, and leadership information match across your records.

Your chart should show each role your administrator and alternate will fill. Also identify who will supervise PAS services and check that person’s separate qualifications under 26 TAC §558.404(g).

A PAS supervisor must be a licensed nurse or have two years of full-time college study.

A person with a high school diploma or GED may substitute one year of full-time supervisory work in a health care facility, agency, or community-based agency for each year of college.

You can also prepare your full PAS policies during the application period. They must be ready and followed when you begin operating, not saved for survey day. Our Texas PAS policy manuals can help you put these documents together.

Step 9: Apply Through TULIP and Pay the License Fee

Create an account in TULIP, the Texas Unified Licensure Information Portal. Complete the HCSSA application, select PAS, upload your documents, and pay the $2,625 initial license fee.

Check every entry before submitting. HHSC fees are generally non-refundable.

Texas’s processing rules set out two stages:

Application review: Up to 45 days to check whether your paid submission is complete and accurate.
License issuance: Up to 45 days after the application is complete and licensing requirements are met.

If HHSC asks for missing or corrected information, send it through TULIP within 30 days of the notice date. Missing the deadline can lead to denial without a refund. See 26 TAC §558.12.

Preparation, corrections, and other issues can add time. These review windows do not promise a launch date.

What Should You Do While HHSC Reviews Your PAS Application?

Use the review period to prepare your staff, records, systems, and marketing. Complete these tasks before serving your first client.

Set Up Banking, Payroll, and Insurance

Open a business bank account and keep agency money separate from personal spending. You can use separate accounts or sub-accounts for payroll, taxes, and other expenses.

Set up payroll and confirm your tax duties before hiring. Get insurance quotes for the services you plan to offer, including any client transportation. Check payer contracts for required coverage before accepting those cases.

Finish Your PAS Policies and Client Forms

Prepare written procedures that match how your agency will operate. Your working documents should cover:

Client admission, service plans, rights, and complaints.
Staff hiring, screening, training, and supervision.
Emergency preparedness and infection control.
Secure client and personnel records.
Quality assessment and performance improvement (QAPI), which means checking care quality and fixing problems.

Recruit and Screen Your First Caregivers

Have caregivers ready for your first case, with a backup for absences. At 123 Consulting Solutions, we recommend preparing at least two suitable caregivers so one person’s availability does not stop your launch.

Complete the required criminal-history checks before assigning caregivers to clients. Keep the results and document any required review of a criminal record.

Follow HHSC’s current screening guidance: check the Search Engine for Multi-Agency Reportable Conduct (SEMARC) through TULIP and search the Nurse Aide Registry separately. Complete required checks before hire and repeat them at least annually. Save dated results.

Train caregivers on their assigned tasks, client safety, emergencies, infection control, and privacy. Check and document that each can perform the work before assigning a visit.

For hiring advice, read how to recruit caregivers for a home care business.

Choose Scheduling, Billing, and Payroll Systems

Choose tools that let you schedule visits, record staff time, send invoices, run payroll, and keep records secure. Check how the tools share information before paying for several separate systems.

If Medicaid is part of your plan, check the Texas Electronic Visit Verification (EVV) requirements. EVV records required visit details, such as who provided care and when the visit began and ended.

Confirm that your EVV setup supports the services and payers you plan to bill. Ordinary clock-in software may not meet those requirements.

Prepare Your Marketing and Referral Plan

Decide who you want to serve, which areas you can cover, and why a family should choose your agency. Then prepare your website, business cards, social pages, and a short explanation of your services.

List potential referral contacts, such as social workers, discharge planners, and senior living staff. Plan how you will introduce your agency once it is licensed.

For practical next steps, read how to market home care services and how to get home care clients.

What Happens After HHSC Issues Your PAS License?

Once your license is issued and your staff and systems are ready, announce your opening and begin enrolling clients. Tell your referral contacts which services and areas you cover.

Enroll Your First Client and Request the Initial Survey

For a PAS-only agency, 26 TAC §558.521 requires you to do all three within six months of your initial license’s effective date:

Admit at least one client.
Provide services to that client.
Request the initial survey using HHSC Form 2020, Notification of Readiness for Initial Survey.

Before care starts, arrange the required on-site visit to determine the client’s needs. Agree on a written service plan with the client or family, assign qualified staff, and open the client record.

After you have provided services, submit Form 2020 to the designated HHSC survey office. Follow HHSC’s initial-survey instructions.

Keep Your Agency Ready for the Survey

HHSC surveys are generally unannounced. Your records should show that you follow Texas rules and your own policies.

Keep these ready for review:

Your client list, admission records, signed service plans, and visit records.
Staff files, qualifications, screening results, and training records.
Administrator and alternate training records.
Agency policies, emergency plans, and QAPI records.

Check for missing signatures, unfinished forms, and gaps between the service plan and visit records. Fix problems as they arise so your records stay ready for an unannounced visit.

Complete Medicaid Enrollment and Payer Contracts

If you plan to accept Medicaid, complete Texas Medicaid enrollment and any program contracts you need. Managed care organizations, or MCOs, also have their own credentialing and contracting steps.

Prepare early and submit each application when you meet its prerequisites. Before serving an authorized Medicaid case, confirm that enrollment, contracts, staff, EVV, and billing systems are in place.

Our Medicaid and insurance contracting service can help you prepare for enrollment, credentialing, and payer requirements.

Common Mistakes When Starting a PAS Agency in Texas

Check these points before you submit your application or accept your first client:

Choosing an unqualified alternate: Check both leaders’ qualifications and training, even if the owner will manage most of the work.
Submitting mismatched or missing documents: Compare names, addresses, ownership details, charts, and signed training certificates before uploading.
Spending the whole budget on setup: Keep part of your total budget available for marketing and payroll.
Missing a TULIP correction notice: Check messages daily and respond within the 30-day deadline.
Treating the license as the final step: Finish client and staff records, begin services, and request your initial survey on time.

Frequently Asked Questions

The initial state license costs $2,625. At 123 Consulting Solutions, we recommend a total budget of $10,000–$15,000 for a lean, independent PAS startup, including setup costs, early marketing, and a payroll reserve. Office rent, staffing, and a slower launch can increase that amount.

Texas rules allow up to 45 days to review your paid application and up to 45 more days to issue the license once it is complete and requirements are met. Training and preparation come first. Missing documents or requested corrections can extend your timeline.

Yes. HHSC allows a home address if you actually direct the agency’s services from there. You must protect records and provide surveyors with access and a safe workspace. Check local zoning, your lease, and homeowners association rules before choosing the location.

No. A PAS-only agency does not need a supervising nurse to get licensed. Your administrator, alternate, and PAS supervisor must still meet their qualifications. An RN may be needed for certain health-related tasks, including deciding whether a task requires nursing delegation.

Yes. Your agency must complete Texas Medicaid enrollment and any required program or health plan contracts. For services subject to EVV, you also need an approved setup and the required visit records. An HCSSA license alone does not authorize Medicaid billing.

No. A PAS-only HCSSA license does not allow your agency to bill Original Medicare. Home health and hospice agencies follow separate Medicare certification and enrollment requirements. If Medicare is part of your business plan, compare those service categories before you apply.