How to Start an Adult Residential Care Home in Hawaii: DOH ARCH Type I and II, Expanded ARCH, Nurse Aide Operator with 1 Year of Experience, Free Application

If you want to run a small, home-based care setting for adults who need help with daily living, the Adult Residential Care Home (ARCH) license from the state Department of Health is the core permit you need. This guide walks through how to start an adult residential care home business in Hawaii, from checking your own qualifications to filing your business entity and preparing to take residents. Rules and fees change, so confirm every figure with the Department of Health before you spend money or sign a lease.

Disclaimer: This article is informational content only. It is not legal or tax advice. Licensing, zoning, tax and employment questions can get complicated quickly, so talk with a Hawaii attorney and a CPA before you sign a lease or choose a business structure.

What the ARCH License Covers

The Department of Health's Office of Health Care Assurance (OHCA) licenses adult residential care homes under Hawaii Revised Statutes (HRS) 321-15.6 and 321-15.62. The operating rules are in Hawaii Administrative Rules (HAR) 11-100.1. There are two basic types:

• Type I ARCH: Five or fewer residents. DOH may allow up to six at its discretion. The primary caregiver or operator must be a certified nurse aide with state-approved training.
• Type II ARCH: Six or more residents.

Expanded ARCH is a separate category for homes that take residents certified as needing nursing facility level of care. A Type I home may have no more than two of these residents. A Type II home may have no more than 20 percent of its licensed capacity in this group, though DOH may allow more at its discretion. Higher-acuity residents mean more staffing, more training and more liability, so decide on this category before you market your home.

A community care foster family home is a different DOH license with its own requirements and application. If that is your plan, do not assume the ARCH steps below apply to you.

Hawaii does not issue a general business license at the state or county level. Registering a business entity or a trade name is a filing, not a license. The one universal state registration is the General Excise Tax (GET) license. Beyond that, licensing depends on your activity and may come from DOH, the DCCA professional and vocational licensing boards, or county planning departments.

Materials and Information You Need Before You Start

• Proof of Hawaii residency
• Your nurse aide certification and employment records showing at least one year of full-time direct nurse aide care
• Certificates from the DOH-approved ARCH training modules taught at a University of Hawaii community college
• A residence you own or a lease that allows a residential care use, plus a floor plan showing bedrooms, bathrooms, exits and common areas
• An LLC or corporation filing, and a trade name registration if you will operate under a name other than your entity name
• A registered agent with a physical street address in Hawaii
• A one-time $20 GET license
• Written resident admission agreements, care policies, emergency plans and a staffing schedule
• A startup budget that includes the state annual report fee, insurance, furnishings and accessibility upgrades

Step-by-Step: How to Start Your ARCH Business

Step 1: Confirm You Meet the Minimum Qualifications

OHCA's qualification sheet (revised 2019) sets these minimums. You must:

• Be a Hawaii resident
• Be 21 years old or older
• Hold at least a nurse aide credential
• Complete the DOH-approved ARCH training modules at a University of Hawaii community college
• Have at least one year of full-time direct nurse aide care as an employee of a licensed ICF, skilled nursing facility, home health agency or hospital
• Have a home that meets HAR 11-100.1

The one-year experience requirement trips up many applicants. Experience at an employer type not on that list may not count. Confirm with OHCA before you assume your past work qualifies. Keep pay stubs, employer letters and job descriptions that show full-time, direct care duties.

Step 2: Complete the ARCH Training Modules

The training modules are DOH-approved and offered through a University of Hawaii community college. If your completion is more than five years old, you must retake them. Save your certificates in a dated file. Check with OHCA for the current course schedule, enrollment steps and any course costs, since those are not set out in this guide.

Step 3: Get the Application and Request a Courtesy Plan Review

The ARCH application is free. OHCA issues it after you complete the training modules. OHCA also offers a courtesy plan review of your floor plan. Use it before you buy furniture, remodel or change the layout. Ask about bedroom count, bathroom access, exit routes and how your plan meets HAR 11-100.1. Get any feedback in writing.

Step 4: Choose Your Type and Resident Mix

Decide between Type I (five or fewer residents, up to six at DOH discretion) and Type II (six or more). Then decide whether to seek Expanded ARCH status. Your licensed capacity drives your staffing plan, your floor plan and your revenue, so make this decision before you sign a lease. If you are unsure, talk with OHCA and a CPA about the tradeoffs.

Step 5: Confirm Zoning and Local Approvals

Hawaii has four counties (Honolulu, Hawaii, Maui and Kauai) and no incorporated cities. Land use is handled at the county level. Check with your county planning department whether a residential care use is allowed where you plan to operate, and whether you need any county permit. If you rent, get written permission from your landlord. If you live in a condominium or planned community, review the governing documents for home business or care use restrictions.

Step 6: Form Your Business Entity

Most ARCH operators form a Hawaii LLC. The Articles of Organization (Form LLC-1) carry a $50 filing fee plus a $1 State Archives fee. Your name must include Limited Liability Company, L.L.C. or LLC. Limited may be shortened to Ltd. and Company to Co. You can check availability for free through the BREG business name search at hbe.dcca.hawaii.gov/search-and-buy. You can reserve a name for 120 days for $10.

Your LLC must name a registered agent. The agent must be a Hawaii individual or an entity authorized to do business in Hawaii, and must be physically present in the state. An LLC cannot be its own registered agent. The Articles must list the agent's complete Hawaii street address. Commercial registered agents file a listing statement with BREG for $100. Corporations file Articles of Incorporation (Form DC-1) with the same $50 filing fee.

File through Hawaii Business Express at hbe.dcca.hawaii.gov. The division describes online filing as the most efficient method. Expedited review normally costs an extra $25.00 per document, but BREG states that expedited processing is not available at this time because of the transition to its new registration portal, which went live July 6, 2026. Plan for routine processing and no published turnaround time.

Your entity must file an annual report for $12.50. The report is due by the end of the calendar quarter in which you registered. If you registered January 1 to March 31, it is due March 31. April 1 to June 30 is due June 30. July 1 to September 30 is due September 30. October 1 to December 31 is due December 31. No report is due in the year you registered. An entity registered in October 2026, for example, first files in 2027, by December 31, 2027.

Step 7: Register a Trade Name if You Need One

If your home will operate under a name different from your LLC or corporation, file a Trade Name Registration (Form T-1) with BREG. The fee is $50.00 plus a $1.00 State Archives preservation fee. A $20.00 expedited fee exists, but expedited processing is currently not available. Registration is valid for five years, and BREG does not send renewal notices, so calendar the expiration date. Hawaii has no county-level DBA filing. Details are at cca.hawaii.gov/breg/registration/trade.

Step 8: Register for GET and Set Up Your Tax Accounts

Hawaii has no sales tax. Instead, the General Excise Tax applies to the seller's gross income or receipts. The state rate is 4.0 percent. Each county adds a 0.5 percent surcharge, for 4.5 percent on most retail and service activity. Confirm with the Department of Taxation which rate and classification apply to your resident fees, because the answer affects your pricing. Apply for the one-time $20 GET license on Form BB-1 or through Hawaii Tax Online at tax.hawaii.gov/get. Online processing takes 5 to 7 business days. Mail processing takes 4 to 6 weeks. Every license holder must file returns, even in a period with no income. Hawaii has no franchise tax on LLCs.

Step 9: Set Up Employment and Insurance

If you hire staff, you must follow the Prepaid Health Care Act. Confirm your obligations with the Department of Labor and Industrial Relations. Talk with an insurance agent about liability coverage and workers' compensation before your first resident moves in. Ask OHCA which insurance documentation, if any, it expects with your application.

Step 10: Submit Your ARCH Application and Plan for Fees

Submit the completed application to OHCA with the documents it asks for, which may include your training certificates and floor plan. The application is free, but OHCA's license fees are not set out in this guide. Check with the OHCA State Licensing Section for the current license fee, inspection steps and expected timeline. Do not admit residents until your license is issued.

Common Mistakes to Avoid

• Assuming any nursing job counts toward the one-year requirement. The employer must be a licensed ICF, skilled nursing facility, home health agency or hospital.
• Remodeling before the floor plan review. Changes made without OHCA feedback can force costly rework.
• Accepting higher-acuity residents without checking Expanded ARCH limits. Type I allows two such residents, and Type II is capped at 20 percent of licensed capacity unless DOH allows more.
• Operating under a trade name without registering it. Your LLC filing does not register a DBA.
• Missing the first annual report. The deadline is tied to your registration quarter, and no report is due in the year you registered.
• Counting on expedited filing. BREG states that expedited processing is not available at this time, so build routine processing time into your opening date.
• Confusing ARCH with a community care foster family home. These are separate DOH licenses with separate requirements.
• Assuming no state business license means no requirements. Your activity may still require agency licensing, county approvals or industry permits.

Expected Results

Completing these steps may put your home in a position to be reviewed for licensure. It can also help you avoid the delays that come from missing filings or unverified experience. Outcomes depend on OHCA approving your application, your home meeting HAR 11-100.1, your county approvals, and your staffing and operations. This guide does not promise approval, a specific timeline or any level of income.

Helpful Official and Support Resources

• Hawaii Department of Commerce and Consumer Affairs, Business Registration Division: cca.hawaii.gov/breg
• Hawaii Business Express (online filing): hbe.dcca.hawaii.gov
• Hawaii Department of Taxation: tax.hawaii.gov
• Hawaii Small Business Development Center: hisbdc.org
• U.S. Small Business Administration, Hawaii district: sba.gov/district/hawaii

OHCA's contact details are not listed in this guide. Confirm the current address, phone number and web page for the Office of Health Care Assurance before you submit anything.

Disclaimer: This article is informational only and is not legal, tax, financial or healthcare regulatory advice. Requirements, fees and deadlines can change. Verify every item with the named agency, and consult a qualified Hawaii attorney and CPA for your situation.