How to get a licence for home daycare: a step-by-step guide

Last updated 2026-07-09

What is a home daycare licence and do you actually need one?

A home daycare licence (sometimes called a family child care licence or certificate of registration) is the legal permission your state grants you to care for children who are not your own in your private residence for payment. Every U.S. state has some form of licensing or registration requirement for paid home child care. The threshold that triggers it varies a lot. ^[1]

Most states exempt you from licensing if you care for only one or two unrelated children, or if you care exclusively for relatives. The specifics depend entirely on your state. Pennsylvania requires registration once you care for four or more unrelated children under age 13. California requires a licence once you care for any unrelated child for pay. ^[1]

Operating without a required licence is more than a paperwork problem. Penalties range from fines to criminal charges in some states, and unlicensed providers are typically ineligible to receive child care subsidy payments funded through the federal Child Care and Development Fund (CCDF). ^[2] If you plan to accept families using subsidy, a licence is non-negotiable.

The Child Care Aware of America annual report found that licensed family child care homes make up a large share of regulated child care supply, and their numbers have been falling. ^[3] Getting licensed matters for the families you serve too: parents searching for subsidized care can only use licensed providers in most states.

How do you find your state's home daycare licensing office?

Your single starting point is the Child Care and Development Fund (CCDF) state contact list maintained by the Office of Child Care (OCC) at the U.S. Department of Health and Human Services. Every state and territory that receives CCDF block grant funding, which is all of them, must publish licensing rules and maintain a licensing agency. ^[2]

The OCC website at https://childcare.gov has a state-by-state licensing resource page that links directly to each state's licensing agency. Start there. State agency names are genuinely confusing: in some states it's the Department of Social Services, in others it's the Department of Early Childhood, and in others it sits inside the Department of Health. Searching your state name plus "family child care licensing" works too, but verify you've landed on a .gov or .state.us domain before trusting what you read.

Once you find your state agency, look for the family child care or family home section specifically. Most agencies run a separate licensing track for small family homes (typically up to 6 children) and large family or group homes (up to 10 to 12 children). Make sure you're reading the rules for the right category. ^[1]

Call the licensing office before you start any renovations or purchases. Licensing specialists will tell you exactly what your home needs, what training you must complete first, and how long the queue is for inspections in your county. That 20-minute phone call saves months of guesswork.

What are the core steps to get a home daycare licence?

The process looks roughly the same across states, even though the specifics vary. Here's what you actually do, in order.

Step 1: Check your zoning and lease or mortgage. Contact your local planning or zoning office to confirm a licensed child care home is a permitted use in your zone. Many residential zones allow it; some require a conditional use permit. If you rent, your lease may prohibit running a business from the property. Get written confirmation from your landlord. ^[4]

Step 2: Submit a pre-application or intent form. Many states want you to notify them before you open, not after. This triggers a pre-licensing visit or at minimum gets you into the queue for your inspection.

Step 3: Complete required pre-service training. Most states require you to finish specific training hours before you can be approved. Topics typically include child development, first aid and CPR, safe sleep, nutrition, and mandated reporter training. Required hours range from around 6 to 40 or more depending on the state. ^[1] You cannot skip this step; your certificate of completion is usually required with your application.

Step 4: Pass background checks. Every person living in or regularly present in your home who is 18 or older typically must pass a state criminal background check and, in most states, a federal FBI fingerprint check as well. The 2014 reauthorization of CCDBG (Child Care and Development Block Grant Act) requires states to conduct background checks on all licensed providers and household members. ^[5] This step can take several weeks, so start it early.

Step 5: Prepare your home. Your home must meet specific physical standards. These typically include fire extinguishers, working smoke and carbon monoxide detectors, secured medications and cleaning products, safe outdoor play space, proper bathroom ratios, and adequate indoor square footage per child. ^[1]

Step 6: Schedule and pass your licensing inspection. A state licensor comes to your home, walks through every room (more than the child care areas), and checks your environment against the licensing standards. Some states do two visits: an initial pre-licensing check and then a full inspection once you meet all requirements.

Step 7: Submit your application and fee. Once your training is complete, background checks are cleared, and your home passes inspection, you submit your formal application. Fees in most states range from $0 to $150 for initial licensure. ^[6] Your licence is then issued, usually for one to two years, after which you renew.

The whole process from first contact to licence in hand typically takes 60 to 180 days, with most of the delay coming from background check processing and inspection scheduling backlogs. Plan for the longer end if you're starting in a busy season.

What physical requirements does your home need to meet?

Licensing inspectors check your home against a written standard, and knowing that standard before the visit is the entire game. Most state standards address the same categories, even if the numbers differ.

Indoor space requirements typically run 35 square feet per child for the rooms children actually use, matching guidance from the American Academy of Pediatrics, American Public Health Association, and National Resource Center's "Caring for Our Children" national health and safety standards. ^[7] Some states set this lower (as little as 25 square feet) and others higher.

Outdoor play space is required in most states, usually 75 square feet per child in the outdoor area. If your yard doesn't qualify, some states let you use a nearby public park, though you'll need to document that arrangement.

Safety requirements almost universally include working smoke detectors on every level, a carbon monoxide detector if you have gas appliances or an attached garage, at least one ABC fire extinguisher inspected within the last year, outlet covers, cabinet locks on cabinets holding cleaning products or medicines, stair gates, and a working telephone.

Sleep environments for infants must meet safe sleep standards: a firm flat surface, no soft bedding, no bumper pads, babies placed on their backs. Many states have adopted the AAP safe sleep guidelines by reference into their regulations. ^[7]

Pets must be current on vaccinations and, depending on the state, may need to be secured away from children during care hours.

Make a checklist from your state's actual licensing standards document before the inspector arrives. Most state agencies post the standards PDF on their website. Go room by room. Inspectors are not trying to fail you; they want you to pass. But they cannot approve a home that has real hazards.

For ongoing cleaning and sanitation standards that inspectors check on renewal visits, the practical guide at daycare cleaning breaks down what inspectors typically look for and how to stay ahead of it.

What training and certifications do you need before you can open?

Training requirements before licensure differ substantially by state, but several categories show up in almost every state's rules.

Pediatric first aid and CPR certification is required in virtually every state, and it must be current (typically renewed every two years). The certification must cover infants and children specifically, more than adult CPR.

Mandated reporter training is required in most states and teaches you your legal obligation to report suspected child abuse or neglect. Many states offer this as a free online course.

Safe sleep training is now required in most states following increased attention to SIDS and sleep-related infant deaths. It's often a short course, but it's mandatory.

Beyond these near-universal requirements, states add their own. Some require formal early childhood education coursework. Others require a minimum number of hours of child development training. A few states require a Child Development Associate (CDA) credential or enrollment in a credential program before you can receive a licence. The CDA is a nationally recognized credential issued by the Council for Professional Recognition and typically takes 12 to 18 months to complete. ^[8]

Annual continuing education (CE) is also required after licensure. Most states require 12 to 24 hours of CE per year to renew your licence. Some have moved to a professional development registry system where you log all your training hours in a state database.

Do not assume online courses from random websites count. Your state will specify which training providers are approved. Some states accept only in-person training for certain topics like first aid. Confirm the format and provider requirements with your licensor before you spend money on courses.

How much does it cost to get a home daycare licence?

The application fee itself is a small part of your actual startup cost. Here's an honest breakdown of what you'll spend.

Application fees range from $0 in some states to about $150 in others. The fee is rarely the barrier. ^[6]

Background check fees are often separate and can add $30 to $100 per person depending on whether state-only or federal fingerprint checks are required, and how many household members need to be cleared.

Training costs vary. CPR and first aid certification typically runs $50 to $80 per person if you take a class in person. Online courses for mandated reporter training and safe sleep are usually free. If your state requires early childhood coursework, community college tuition applies.

Home modifications are the wildcard. If your home needs a fire extinguisher, outlet covers, and a few cabinet locks, you're looking at under $100. If you need to fence a yard, add a bathroom, or make structural changes, costs can run into the thousands. Most homes that are already safe for families need only minor purchases.

Insurance is not technically a licensing requirement in most states, but running a home daycare without business liability coverage is genuinely risky. Your homeowner's or renter's policy almost certainly excludes business activity. A home daycare liability policy runs roughly $400 to $700 per year. The full breakdown is at home daycare insurance.

Total realistic startup cost for most home daycare providers: $300 to $1,500, depending on your state's training requirements and your home's current condition. That's before any furniture, supplies, or curriculum materials.

To understand how licensing affects what you can charge families, the numbers at daycare cost put licensed versus unlicensed rates in context.

What are child-to-provider ratios for licensed home daycare?

Ratios are the number of children one provider can supervise at a time, and they are set by state law. Every state has them. They just vary. ^[1]

For a small family child care home with one provider, most states allow a maximum of 6 children total, often with a sub-limit on the number of infants (children under 2) you can care for at once. A common rule is no more than 2 infants in a group of 6. Some states are stricter: 4 total children with 1 infant, for example.

Your own children count in most states. If you have a 1-year-old and a 3-year-old at home during care hours, those two children count against your licensed capacity.

Large family child care homes (sometimes called group family homes) allow more children, usually 7 to 12, but require a second qualified caregiver present.

Here's a simplified comparison of how a few states set small family home limits:

State	Max children (small home)	Max infants	Own children counted?
California	6 (up to 8 with large home licence)	Varies by age mix	Yes, under 10
Texas	6 (unrelated)	4 under age 2 total	Yes
New York	6 total	2 under 2	Yes
Florida	10 (with assistant)	Varies	Yes
Illinois	8	3 under 18 months	Yes

These numbers come from state licensing standards and change when states update their rules, so verify with your state agency before planning your enrollment. ^[1]

Exceeding your licensed capacity, even by one child, can trigger suspension of your licence. Inspectors and licensing staff sometimes receive complaints from neighbors or parents and will investigate. It is not worth it.

How long does the home daycare licensing process take?

Realistically: 60 to 180 days from your first call to your licence in hand. ^[1] The range is that wide because of three things mostly outside your control: how long background checks take to process in your state, how backed up the inspection queue is, and how long it takes you to complete required training.

Background checks are the most common delay. FBI fingerprint checks can take 4 to 8 weeks. Some states have agreements with the FBI for faster turnaround, others do not.

Inspection scheduling depends on how many licensors your state has and how many applications are in front of yours. Rural areas sometimes have fewer licensors covering more ground, which means longer waits.

Training you control. Get your CPR and first aid done, complete your online courses, and gather your documents immediately, and you eliminate the only variable fully within your power.

Some states offer a provisional or temporary licence that lets you operate while your full application is being processed, usually conditional on a completed home inspection and cleared background checks. Ask your state office whether this is available.

Do not schedule your opening date based on the fastest possible scenario. Tell families your target date is 90 days out, not 45, so you have room if something in the process runs long.

What happens during the home daycare licensing inspection?

The inspection is a walk-through of your entire home, more than the rooms where you plan to care for children. The licensor is looking at safety, sanitation, and whether your environment matches your application.

Common inspection checkpoints include smoke and CO detector placement and function, fire extinguisher presence and inspection tag, outdoor play area safety and fencing, kitchen food safety and storage, bathroom cleanliness and accessibility, sleeping areas (particularly for infant care), hazardous materials storage, first aid kit contents, and your posted emergency procedures.

The licensor will also review your paperwork: your CPR and first aid certificates, completed training records, emergency contact and permission forms (if you already have enrolled children), pet vaccination records if applicable, and your liability insurance certificate.

If the inspector finds problems, they will typically give you a correction notice with a deadline to fix each item, then schedule a follow-up visit or ask for photographic proof of correction. A minor issue like a missing outlet cover does not fail your application outright; you fix it and move on. A serious safety hazard, like a swimming pool without required fencing, delays your licence until it's corrected.

ChildCareComp's compliance toolkit has printable self-inspection checklists modeled on common state standards, which help you walk through your home the same way a licensor would before the official visit.

After the inspection, your licensor writes a report, your background checks are verified, your training documents are reviewed, and the agency issues your licence. In most states you receive a physical licence certificate that you must post in a visible location in your home.

Can you run a home daycare without a licence?

You can, in some narrow circumstances. Most states exempt providers who care for only one unrelated child, or who care only for relatives' children, or who run a drop-in care arrangement for fewer than a set number of hours per week. The specific exemptions are in your state's child care licensing statute. ^[1]

But operating outside a genuine legal exemption is a bad idea for reasons beyond fines. You cannot accept CCDF subsidy payments. ^[2] You are not covered by your homeowner's insurance for business activity. If a child is injured in your care, you have no professional liability protection. And if something goes wrong, the fact that you were operating illegally will be front and center.

The consequences of unlicensed operation, when it falls outside an exemption, range from written warnings to cease-and-desist orders to misdemeanor charges in states that treat it as a criminal matter. The penalties vary by state but they are real.

If you're caring for children in a way you think might be exempt, get that in writing from your state agency before you rely on it. Verbal assurances from a licensing office staffer are not protection.

How do you renew a home daycare licence after you get it?

Licences are issued for one to two years in most states, and renewal is not automatic. You must apply for renewal before your current licence expires, typically 60 to 90 days in advance.

Renewal requirements usually include proof of completed continuing education hours, current CPR and first aid certification, updated background check (some states require this every renewal cycle, others every few years), any updated household member information, a renewal fee (again, usually $0 to $150), and in some states a renewal inspection.

The continuing education requirement is the piece providers most often scramble to complete. If your state requires 20 hours per year and your licence is due in March, you need all 20 hours documented before you submit your renewal. Don't wait until January to start looking for training.

Keep a running folder, physical or digital, with copies of every training certificate you earn, every CPR renewal card, every inspection report, and every licence you've held. Licensing history matters if you ever move to a larger facility, apply for a grant, or if your record is ever reviewed following a complaint.

For questions about how licensing intersects with specific state subsidy programs and CCDF rules, Child Care Aware of America publishes an annual state fact sheets report that breaks down each state's requirements and funding. ^[3]

What financial and business steps should you take alongside getting licensed?

Licensing is the legal permission to operate, but it's not the only business foundation you need.

Get an Employer Identification Number (EIN) from the IRS even if you have no employees. It lets you open a dedicated business bank account, which you should do, and it keeps your Social Security number off every tax form you hand to a client family. An EIN is free at irs.gov. ^[9]

Open a separate checking account for your daycare income and expenses. This makes tax preparation dramatically simpler and makes your records defensible if you're ever audited. The IRS allows home daycare providers to deduct the business-use percentage of their home's mortgage or rent, utilities, and supplies under the home office rules. IRS Publication 587 details the Time-Space method for calculating that percentage. ^[10]

Get liability insurance before your first child arrives, not after. Your homeowner's policy excludes business activity and will deny a claim if a child is injured in your care during paid hours. daycare liability insurance covers what policies typically include and what they exclude.

Create your parent handbook and enrollment contract before you open. These documents set your policies on late pickup fees, sick child exclusion, payment schedules, and termination of care. Having them in writing protects you and the families you serve.

Understand what subsidy payments look like if you plan to accept them. CCDF-funded subsidies are paid by the state on behalf of income-eligible families, but payment timelines, authorization processes, and attendance tracking requirements add administrative work. ^[2] Some providers choose not to participate; others build their entire enrollment model around subsidy families. Either approach works, but know what you're getting into before you commit.

For a full picture of what childcare actually costs families in your area, which directly informs what you can charge, see Daycare costs, licensing, and rules: the complete 2026 guide.

Frequently asked questions

How many children can I watch in my home without a licence?

It depends on your state. Most states exempt providers caring for one or two unrelated children from licensing requirements. Some states exempt relatives' children entirely. A few states require a licence the moment you accept any payment for caring for an unrelated child. Check your state's child care licensing statute directly or call your state licensing office to find out your specific threshold.

How much does it cost to get a home daycare licence?

Application fees typically run $0 to $150 depending on the state. But the total startup cost including background checks ($30 to $100 per household member), training ($50 to $80 for CPR/first aid), minor home modifications, and liability insurance realistically comes to $300 to $1,500 for most providers. Structural home changes can push that higher.

What background checks are required for a home daycare licence?

At minimum, every state requires a state criminal background check on the applicant. Most also require FBI fingerprint-based checks on all household members 18 and older. The 2014 CCDBG Act mandated that states conduct background checks on all licensed providers and their household members as a condition of receiving CCDF funding. Processing takes 4 to 8 weeks in many states.

Do I need a CPR certification to run a home daycare?

Yes, in virtually every state. The certification must cover pediatric (infant and child) CPR specifically, more than adult techniques. It must be current, typically renewed every two years. Most states require the provider to be certified before the licence is issued, and some also require any assistants to hold current certification.

Does my own child count toward my licensed capacity?

In most states, yes. Your own children who are under a certain age (often under 10 or under school age) count toward your capacity during care hours. This is one of the most commonly misunderstood ratio rules. Verify with your state licensing office exactly which of your children count and at what ages they stop being counted.

Can I watch children in my home while renting?

Possibly, but you need your landlord's written permission. Most standard residential leases prohibit using the property for business activity, and running a licensed daycare is a business. Some landlords agree; others don't. Even if your landlord agrees, your lease and any homeowner's association rules need checking. Get any landlord approval in writing before you submit a licensing application.

What zoning rules apply to home daycare?

Family child care homes are considered a residential use in many jurisdictions and permitted by right in residential zones, but not everywhere. Some areas require a conditional use permit or special use permit. Contact your city or county planning department to confirm your zone allows it. Some states have laws preempting local zoning restrictions on small family child care homes, so check both state law and local rules.

How long does it take to get a home daycare licence?

Plan for 60 to 180 days from your first contact with the licensing office to receiving your licence. The main delays are background check processing (4 to 8 weeks is common), inspection queue backlogs, and completing required training. Starting your background check and CPR certification immediately reduces the timeline under your control. Don't commit to opening families until your licence is in hand.

What training is required before I can get a home daycare licence?

Requirements vary by state but almost always include pediatric first aid and CPR certification, mandated reporter training, and safe sleep training. Many states add required hours of child development coursework. Some require a Child Development Associate (CDA) credential or enrollment in one. Confirm your state's specific required hours and approved training providers with your licensing office before spending money on courses.

Do I need special insurance to run a licensed home daycare?

Your homeowner's or renter's insurance policy almost certainly excludes claims arising from business activity. That means a child injury during paid care hours would likely be denied. You need a separate home daycare liability policy, which typically costs $400 to $700 per year. Some states strongly recommend it; a few require it. Either way, operating without it is a significant financial risk.

Can I accept childcare subsidy payments with a home daycare licence?

Yes, and licensing is the main gateway to accepting CCDF-funded subsidies. States that receive CCDF block grant funds are required to make subsidies available only through licensed or otherwise regulated providers. If you want to serve income-eligible families using state subsidy vouchers, you must hold a current licence. Contact your state's Child Care Resource and Referral agency to get on the provider list.

What happens if I operate a home daycare without a licence?

If you're outside a legal exemption, you risk fines, cease-and-desist orders, and in some states misdemeanor charges. Beyond legal penalties, you're ineligible for CCDF subsidy payments, your homeowner's insurance won't cover injury claims, and you have no professional liability protection. If you think you may qualify for an exemption, get it confirmed in writing from your state agency before relying on it.

How do I renew my home daycare licence?

Apply 60 to 90 days before your licence expires, not when it expires. Renewal typically requires proof of completed continuing education hours (usually 12 to 24 per year depending on the state), current CPR and first aid certification, updated household information, a renewal fee, and sometimes a renewal inspection. Keeping a folder with copies of all your training certificates throughout the year makes renewal straightforward.

What does a licensing inspector look for when they visit my home?

Inspectors check smoke and carbon monoxide detectors, fire extinguisher presence and tags, outdoor play space safety, safe sleep environments for infants, hazardous material storage, bathroom accessibility, kitchen food safety, your first aid kit, posted emergency procedures, and your paperwork (training certificates, insurance, pet vaccination records). Minor items get a correction notice; serious safety hazards delay your licence until fixed.

Sources

1. National Center on Early Childhood Quality Assurance (NCECQA) / Child Care State Capacity Building Center, "Licensing and Regulation of Child Care" resource: State licensing requirements, capacity limits, and ratio rules for family child care homes vary by state and are accessible through the childcare.gov state resource portal.
2. U.S. Office of Child Care, Child Care and Development Fund (CCDF) Program: CCDF-funded subsidies are generally available only through licensed or regulated providers; states receiving CCDF block grants must maintain licensing systems.
3. Child Care Aware of America, annual state child care report: Licensed family child care homes make up a large share of regulated child care supply and their numbers have been declining in recent years.
4. National Conference of State Legislatures (NCSL), Child Care Licensing overview: Zoning and land use regulations can restrict home daycare operation; some states have enacted laws limiting local governments' ability to zone out small family child care homes.
5. Child Care and Development Block Grant (CCDBG) Act of 2014, Public Law 113-186: The 2014 CCDBG reauthorization requires states to conduct criminal background checks on all licensed child care providers and household members as a condition of CCDF funding.
6. National Center on Early Childhood Quality Assurance, licensing fees data compilation: Home daycare initial licensing application fees range from $0 to approximately $150 across U.S. states.
7. American Academy of Pediatrics, American Public Health Association, and National Resource Center for Health and Safety in Child Care and Early Education, "Caring for Our Children: National Health and Safety Performance Standards," 4th edition: National standards recommend a minimum of 35 square feet of usable indoor space per child in family child care settings and specify safe sleep standards including firm flat sleep surfaces and placement on backs.
8. Council for Professional Recognition, Child Development Associate (CDA) Credential: The CDA is a nationally recognized early childhood credential that some states require for or as a pathway toward family child care licensure; it typically takes 12 to 18 months to complete.
9. Internal Revenue Service, Employer Identification Numbers (EINs): Home daycare providers can obtain a free EIN from the IRS to use instead of their Social Security number on business tax forms and to open dedicated business bank accounts.
10. Internal Revenue Service, Publication 587: Business Use of Your Home: Family child care providers may deduct the business-use percentage of home expenses including mortgage/rent and utilities using the Time-Space calculation method recognized by the IRS.
11. U.S. Department of Health and Human Services, Office of Child Care, State Licensing Requirements: All U.S. states and territories maintain child care licensing agencies and publish licensing standards as a requirement of CCDF participation.