1.A.2.a. Business entity

Rule

Documentation of legal business entity (e.g. incorporation, LLC documents or business license).

Levels

I	II	III	IV
✔	✔	✔	✔

This rule applies to all levels of support.

Guidance

Accredited recovery residence providers must be a legal business entity (e.g., partnership, corporation, limited liability companies). Business entities are registered with the Secretary of State. A single provider may operate one or more properties, meaning multiple properties can operate under a single entity. However, some providers choose to establish a separate entity for each property.

Frequently Asked Questions (FAQs):

Can Affiliates suggest what type of legal entity a provider should be? No. Affiliates can provide education, but should NOT provide legal or tax advice. The type of legal business entity most commonly used can greatly differ across levels. Providers should consult legal and tax professionals to determine which structure is most appropriate. Incorporation occurs at the state level, and laws can differ from state-to-state. Refer providers to state laws and rules.
Can an accredited recovery residence operate using a doing business as (DBA) name? Yes, but the Affiliate will require the provider to be transparent and submit corresponding documents.
Can an accredited recovery residence be owned by an organization based in another state? Yes, as long as required documents have been filed or registered with the state where the recovery residence is located. Laws about out-of-state entities doing business within a state differ from state to state.

Evaluation

Is there documentation that confirms the recovery residence is being operated as a legal business entity?
Does the entity name on the document match the entity name on the:
- Accreditation application?
- Resident agreement?
- Insurance policy?

Evidence

Policy and procedure
Business entity document(s), which can include:
- Incorporation documents from the Secretary of State OR
- IRS determination letter OR
- Business license
Resident agreement
Insurance policy

References

NARR Standard 3.0
NARR Standard 3.0 Compendium
What business entity is right for me?
How is this rule relevant to my accreditation application?

Course Syllabus

Not Enrolled

Measure Up: A Guide to the NARR Standard and Code of Ethics

	1. 1. ADMINISTRATIVE AND OPERATIONAL
	2. 1.A. Operate with Integrity
	2.1. 1.A.1. Use mission and vision as guides for decision making
	2.1.1. 1.A.1.a. Mission
	2.1.2. 1.A.1.b. Vision
	2.2. 1.A.2. Adhere to legal and ethical codes and use best business practices
	2.2.1. 1.A.2.a. Business entity
	2.2.2. 1.A.2.b. Insurance
	2.2.3. 1.A.2.c. Property permission
	2.2.4. 1.A.2.d. Legal compliance
	2.2.5. 1.A.2.e. Ethical marketing
	2.2.6. 1.A.2.f. Background checks
	2.2.7. 1.A.2.g. Paying residents
	2.2.8. 1.A.2.h. Financial boundaries
	2.2.9. 1.A.2.i. Code of Ethics
	2.3. 1.A.3. Financial accounting
	2.3.1. 1.A.3.a. Fee transparency
	2.3.2. 1.A.3.b. Accounting system
	2.3.3. 1.A.3.c. Refund policies
	2.3.4. 1.A.3.d. 3rd party payments
	2.4. 1.A.4. Data collection
	2.4.1. 1.A.4.a. Resident information
	3. 1.B. Uphold Residents’ Rights
	3.1. 1.B.5. Rights and Requirements
	3.1.1. 1.B.5.a. Applicant orientation
	3.2. 1.B.6. Resident information
	3.2.1. 1.B.6.a. Secured records
	3.2.2. 1.B.6.b. Confidentiality
	3.2.3. 1.B.6.c. Social media policy
	4. 1.C. Culture of Empowerment
	4.1. 1.C.7. Peer governance
	4.1.1. 1.C.7.a. Resident driven
	4.1.2. 1.C.7.b. Grievance policy
	4.1.3. 1.C.7.c. Community posts
	4.1.4. 1.C.7.d. Length of stay
	4.1.5. 1.C.7.e. Resident voice
	4.2. 1.C.8. Resident involvement
	4.2.1. 1.C.8.a. Reciprocal responsibility
	4.2.2. 1.C.8.b. Leadership roles
	4.2.3. 1.C.8.c. Recovery process
	5. 1.D. Develop Staff Abilities
	5.1. 1.D.9. Role modeling
	5.1.1. 1.D.9.a. Self-care
	5.1.2. 1.D.9.b. Boundaries
	5.1.3. 1.D.9.c. Staff support
	5.1.4. 1.D.9.d. Positive regard
	5.2. 1.D.10. Staff qualifications
	5.2.1. 1.D.10.a. Social model skills
	5.2.2. 1.D.10.b. Credentials
	5.2.3. 1.D.10.c. Staff development
	5.3. 1.D.11. Culturally responsive
	5.3.1. 1.D.11.a. Priority population
	5.3.2. 1.D.11.b. Cultural training
	5.4. 1.D.12. Job descriptions
	5.4.1. 1.D.12.a. Roles and qualifications
	5.4.2. 1.D.12.b. Resource linkage
	5.4.3. 1.D.12.c. KSA
	5.5. 1.D.13. Staff supervision
	5.5.1. 1.D.13.a. Performance development
	5.5.2. 1.D.13.b. Acknowledgements
	5.5.3. 1.D.13.c. Work environment
	6. 2. PHYSICAL ENVIRONMENT
	7. 2.E. Home-like Environment
	7.1. 2.E.14. Individual needs
	7.1.1. 2.E.14.a. Clean and maintained
	7.1.2. 2.E.14.b. Home-like furnishings
	7.1.3. 2.E.14.c. Entrances and exits
	7.1.4. 2.E.14.d. 50+ sq. ft. per bed
	7.1.5. 2.E.14.e. Sink-toilet-shower
	7.1.6. 2.E.14.f. Personal storage
	7.1.7. 2.E.14.g. Food Storage
	7.1.8. 2.E.14.h. Laundry
	7.1.9. 2.E.14.i. Appliances
	7.2. 2.E.15. Community building
	7.2.1. 2.E.15.a. Meeting space
	7.2.2. 2.E.15.b. Group space
	7.2.3. 2.E.15.c. Dining area
	7.2.4. 2.E.15.d. Recreational area
	8. 2.F. Safe Healthy Environment
	8.1. 2.F.16. Sober living
	8.1.1. 2.F.16.a. Prohibited substances
	8.1.2. 2.F.16.b. Prohibited items
	8.1.3. 2.F.16.c. Drug screening
	8.1.4. 2.F.16.d. Medication storage
	8.1.5. 2.F.16.e. Peer accountability
	8.2. 2.F.17. Home safety
	8.2.1. 2.F.17.a. Functional and hazard free
	8.2.2. 2.F.17.b. Health & safety codes
	8.2.3. 2.F.17.c. Inspections & drills
	8.3. 2.F.18. Promote health
	8.3.1. 2.F.18.a. Smoking
	8.3.2. 2.F.18.b. Universal precautions
	8.4. 2.F.19. Emergency plan
	8.4.1. 2.F.19.a. Procedures & postings
	8.4.2. 2.F.19.b. Emergency contacts
	8.4.3. 2.F.19.c. Emergency orientation
	8.4.4. 2.F.19.d. Overdose readiness
	9. 3. RECOVERY SUPPORT
	10. 3.G. Facilitate Recovery
	10.1. 3.G.20. Promote purpose
	10.1.1. 3.G.20.a. Meaningful activities
	10.2. 3.G.21. Recovery planning
	10.2.1. 3.G.21.a. Person-centered plan
	10.2.2. 3.G.21.b. Recovery capital
	10.2.3. 3.G.21.c. Peer roles
	10.3. 3.G.22. Community supports
	10.3.1. 3.G.22.a. Resource directory
	10.3.2. 3.G.22.b. Resource linkage
	10.4. 3.G.23. Mutual support
	10.4.1. 3.G.23.a. Weekly schedule
	10.4.2. 3.G.23.b. Mutual aid
	10.5. 3.G.24. Recovery support services
	10.5.1. 3.G.24.a. RSS
	10.5.2. 3.G.24.b. RSS Staff
	10.6. 3.G.25. Clinical services
	10.6.1. 3.G.25.a. Clinical services
	11. 3.H. Model Prosocial Behaviors
	11.1. 3.H.26. Respectful environment
	11.1.1. 3.H.26.a. Model recovery
	11.1.2. 3.H.26.b. Trauma informed
	11.1.3. 3.H.26.c. Resident input
	12. 3.I. Sense of Community
	12.1. 3.I.27. Family-like
	12.1.1. 3.I.27.a. Food preparation
	12.1.2. 3.I.27.b. Housing choice
	12.1.3. 3.I.27.c. Chores
	12.1.4. 3.I.27.d. Household expenses
	12.1.5. 3.I.27.e. Household meetings
	12.1.6. 3.I.27.f. Common areas
	12.2. 3.I.28. Internal community
	12.2.1. 3.I.28.a. Informal activities
	12.2.2. 3.I.28.b. Formal activities
	12.2.3. 3.I.28.c. Social activities
	12.2.4. 3.I.28.d. Milestone rituals
	12.3. 3.I.29. External community
	12.3.1. 3.I.29.a. Recovery linkage
	12.3.2. 3.I.29.b. Recovery mentor
	12.3.3. 3.I.29.c. Mutual aid meetings
	12.3.4. 3.I.29.d. Resource linkage
	12.3.5. 3.I.29.e. Multi-membership
	12.3.6. 3.I.29.f. Social bonds
	13. 4. GOOD NEIGHBOR
	14. 4.J. Be a Good Neighbor
	14.1. 4.J.30. Responsive neighbor
	14.1.1. 4.J.30.a. Contact information
	14.1.2. 4.J.30.b. Complaint response
	14.1.3. 4.J.30.c. Neighbor interaction
	14.2. 4.J.31. Courtesy rules
	14.2.1. 4.J.31.a. Preemptive policies
	14.2.2. 4.J.31.b. Parking