How to Start a Private PSW Business in Ontario

Starting a private PSW business can give you more control over your schedule, services and income. Instead of working only through an agency or care facility, you can provide personal support services directly to clients and families.

However, becoming a self-employed PSW involves more than finding clients. You must treat your work as a professional business, protect client information, stay within your role and maintain accurate records.

Here are the essential steps to starting a private PSW business in Ontario.

1. Decide Which PSW Services You Will Offer

Begin by creating a clear list of services you are qualified and prepared to provide. Your services may include:

Personal hygiene and grooming assistance
Dressing and toileting support
Meal preparation
Mobility assistance
Companionship
Light housekeeping
Respite support for family caregivers
Medication reminders
Shopping and appointment accompaniment
Overnight or live-in support

Your services should remain within your training, demonstrated competence and any applicable care plan. Avoid advertising medical, nursing or regulated services you are not legally authorized and qualified to perform.

Clearly explaining what you do—and what you do not do—helps families select the right caregiver and reduces misunderstandings.

2. Identify Your Ideal Clients

You do not need to serve every type of client. A defined area of focus can make your private PSW business easier to market.

For example, you might focus on:

Older adults living independently
Clients who need post-hospital support
Families requiring respite care
Adults with disabilities
Clients living with dementia
Overnight supervision
Palliative support under an established care team
Transportation and appointment assistance

Choose services that match your experience. If you specialize in dementia care, mobility support or another area, obtain appropriate training before presenting yourself as experienced in that service.

3. Choose a Business Structure and Name

Many independent PSWs begin as sole proprietors. A sole proprietorship is generally simpler to establish, but you and the business are not separate legal entities. Incorporation offers a different legal structure and may involve higher setup and administrative costs.

Ontario recommends that new business owners conduct market research, create a business plan, choose an ownership structure and register the business online. You can review the province’s official guide to starting a business in Ontario.

If you operate under a business name rather than your personal legal name, you may need to register that name through the Ontario Business Registry. Registration does not automatically give you exclusive trademark protection, so check whether your proposed name is already being used.

Consulting an accountant or business lawyer can help you decide whether a sole proprietorship or corporation is right for you.

4. Obtain Appropriate Business Insurance

Do not assume that a client’s home insurance or your personal policy protects you while providing paid care.

Speak with a licensed insurance professional about coverage designed for independent caregivers. Depending on your services, you may need:

Commercial general liability insurance
Professional liability or errors-and-omissions coverage
Business-use automobile insurance
Coverage for business equipment
Cyber or privacy-related protection

Ask the insurer to confirm that your specific PSW services are covered. Families may also request proof of insurance before hiring you.

Additional screening, including a Vulnerable Sector Check, First Aid and CPR certification, can strengthen your professional profile and may be required by clients or organizations.

5. Set Professional Rates and Policies

Research what private caregivers charge in your service area, but do not base your rate only on what an employee earns per hour. A self-employed PSW must account for unpaid administrative time, transportation, insurance, supplies, taxes and cancelled visits.

Create rates for the services you intend to offer, such as:

Standard hourly care
Short visits with a minimum charge
Overnight shifts
Weekend or statutory holiday care
Transportation and mileage
Last-minute bookings
Extended or live-in support

Prepare a written cancellation policy. It should explain how much notice a client must provide and whether a late cancellation fee applies.

Be transparent about prices before care begins. Hidden charges quickly damage trust.

6. Use a Written Service Agreement

A handshake is not enough for an ongoing private-care arrangement. Use a written agreement that identifies:

The client and service provider
Services included and excluded
Schedule and location
Hourly or visit rate
Minimum booking period
Payment method and due date
Mileage or transportation charges
Cancellation terms
Emergency contacts
Privacy expectations
Procedure for ending services

A service agreement is different from a care plan. The agreement defines the business relationship, while the care plan describes the client’s needs, routines, risks and approved support.

Have a qualified Ontario lawyer review your contract template before using it with clients.

7. Protect Personal Health Information

Private PSWs may handle sensitive details about a client’s health, medications, routines, address and family. Store this information securely and collect only what you genuinely need.

Ontario’s health privacy law, PHIPA, governs how personal health information is collected, used and disclosed by health information custodians and their agents. Whether and how PHIPA applies to your particular business can depend on your role and working arrangement. The Information and Privacy Commissioner of Ontario provides information about privacy rights and health information custodians.

Use secure systems for care notes and client documents. Do not keep confidential information in unsecured notebooks, personal messaging conversations or unprotected spreadsheets. Never post information, photographs or stories that could identify a client on social media.

8. Create a Documentation System

Every private PSW should maintain organized business and care records. Depending on your services, you may need:

Client intake forms
Emergency contact information
Service agreements
Care plans
Visit or progress notes
Incident reports
Consent forms
Schedules
Invoices and payment records
Mileage and expense logs

Complete progress notes promptly and objectively. Record relevant observations, care provided, the client’s response and any concerns reported to the family or healthcare team.

A secure PSW administration platform can help you separate professional records from personal information and reduce missed invoices or appointments.

9. Understand Taxes and Business Records

Self-employed PSWs are responsible for reporting business income and maintaining supporting records for eligible expenses.

The Canada Revenue Agency generally requires GST/HST registration when taxable supplies exceed the small-supplier threshold of $30,000. The timing rules differ depending on whether the threshold is exceeded in one calendar quarter or across four consecutive quarters. However, some healthcare-related services may receive different tax treatment, so do not automatically add or exclude HST without professional guidance. Review the CRA’s GST/HST registration rules and speak with an accountant about your particular services.

Keep invoices, receipts, mileage records and other business documents organized. CRA guidance indicates that many tax records generally need to be retained for six years.

10. Find Your First Private PSW Clients

Begin with a simple professional presence. Create a website or service page describing your qualifications, service area, availability and contact process.

Potential marketing channels include:

Referrals from former colleagues
Community and senior organizations
Local Facebook groups
Google Business Profile
Printed cards or brochures
Professional networking
Partnerships with related service providers
Referrals from satisfied clients

Never publish a client testimonial, photograph or personal story without appropriate written consent.

Run Your Private PSW Business Professionally

Starting a private PSW business can create greater independence, but success depends on organization and trust. Use written agreements, document each visit, protect client information and keep your scheduling, invoices, mileage and expenses up to date.

PSWPro gives independent Personal Support Workers one place to manage the administrative side of private care. Better organization can help you operate professionally while giving you more time to focus on your clients.

Frequently Asked Questions

Can a PSW work privately in Ontario?

PSWs can provide private support services directly to clients, but they must remain within their competence, follow applicable laws and avoid presenting themselves as regulated healthcare professionals.

Does a private PSW need insurance?

Business insurance is strongly recommended, and some clients may require proof of coverage. Ask an insurance professional for coverage that specifically includes your services.

Should a private PSW use a contract?

Yes. A written service agreement helps establish rates, schedules, responsibilities, cancellation terms and the limits of your services.

How should a private PSW accept payments?

You may accept electronic transfers, cheques, credit-card payments or another documented method. Provide a professional invoice or receipt and maintain accurate payment records.

This article provides general educational information and is not legal, accounting, insurance or tax advice. Requirements may vary according to your services and business structure.