Question about starting an LLC for caregiving/respite services
Colorado Jul 22, 2026
Location: Colorado, USA Hello! I work as a caregiver, and the family has asked me if I can provide overnight respite services. I am currently a W2 employee through an agency that allows the family to bill Medicaid for services. However, in order to provide overnight services (more than 16 hr/day), the agency requires that I get an LLC, business banking account and liability insurance and then become a contractor with them. The parents will be gone for 2-3 weeks. I am wondering if it's worthwhile to go through all of these processes just to be able to provide these services for that amount of time? Are there benefits of being a contractor in general that would make it worth it to make the change in general outside of this trip they're going on? I wouldn't change my status from a W2 employee to contractor if this didn't come up. I don't even know if I want to do caregiving work long-term into the future...if I do become a contractor and decide that I no longer want to after this trip, is that an easy process? If I do keep the LLC, are there significant fees/other admin stuff that I have to keep up with? TIA - I know nothing about this stuff besides being a contracted worker for less than a year with an already existing LLC. So the only thing I had to deal with there was a new way to file taxes.
