How to start a daycare in 2026

First decide: a home daycare or a center. A family child care home runs in the home you live in, with one adult (sometimes two) and a small group — Pennsylvania's definition is four to six unrelated children, with a group home for seven to twelve, and a center is any facility caring for seven or more unrelated children (Pennsylvania OCDEL toolkit); Texas draws the center line at seven children in premises that are not the operator's home. A center is a commercial space — leased or built — with rooms by age, a director, staff at the state's ratio for every room, zoning, a certificate of occupancy and fire clearance, and far more capital. Most first-time providers start at home and some grow into a center later; the rules, the costs and the money below cover both, and where they differ we say which.

Do you need a daycare license? In the US, for a child care center, yes: a center needs its state's license before it opens. For a home daycare, yes once you pass your state's threshold — and the states below draw it very differently: California exempts only your own children plus one other family's, Michigan's rules describe no license-free tier for regular care of unrelated children, Washington licenses any ongoing care of unrelated children run as a business and Massachusetts any regular care in your home, paid or not, while New Jersey licenses only centers — six or more children — and lets a smaller home register voluntarily; Missouri lets a home care for six children, no more than three of them under 2, before any license, Iowa five (six when one is school-age) before registration, and Georgia's rules begin at the third unrelated child. The exceptions are programs a state may choose to exempt, such as those run by public schools, some faith-based or part-day programs and military child care (childcare.gov). A center license costs more than a home's: California charges $484 to apply and $242 a year for a center licensed for up to 30 children, rising to $2,420 and $1,210 above 120, plus $50 for the center orientation — against $73 for a small family home (Cal. Health & Safety Code §1596.803); Florida charges a center $1 per child of licensed capacity, at least $25 and at most $100, and a family home $25 to register or $50 for a license — except in the counties that license child care themselves (Fla. Stat. §402.315). Check your own state's fee schedule with its licensing agency. Some states tie insurance to the license too: California requires a family day care home to carry at least $100,000 per occurrence and $300,000 a year of liability insurance or a $300,000 bond, or to keep a signed affidavit from each parent saying they've been told it has neither (Cal. Health & Safety Code §1597.531).

Every US state regulates child care; the words differ. States set minimum health and safety rules for child care to operate legally, and a few use the word “registered” instead of “licensed” (childcare.gov) — Arizona says “certified” for a home. The question every new provider asks first — how many children can I watch without a license? — has a different answer in each state, and so do the capacity of a licensed home and the staff-to-child ratios a center must keep. Here are the biggest states, each number read from the state's own regulation:

• California: No license while you care only for your own children (or a relative's) plus children from one other family. Licensed, a small family child care home is licensed for up to 8 children and a large one for up to 14, counting your own children under 10. Ratios: centers run 1 teacher to 4 infants and 1 to 12 preschoolers, with at least 35 sq ft of indoor and 75 sq ft of outdoor activity space per child. Training: a $25 orientation before you apply, a $73 license fee for a small home, and at least 15 hours of health and safety training — pediatric CPR and first aid and preventive health — plus an hour of childhood nutrition for licenses issued since 2016. (CDSS, Do I need a license?, Health & Safety Code §1596.866, Title 22 §102416.5, §101416.5, §101216.3, §101238.2–3, application steps)
• Texas: Up to 3 unrelated children as a listed family home — you list with the state rather than hold a permit. Licensed, a registered child-care home takes up to 6 children 13 or younger plus 6 more school-age children after school, never more than 12 in all including your own; a licensed child-care home takes 7 to 12. Ratios: centers run 1 caregiver to 4 infants (0–11 months) and 1 to 18 four-year-olds. Training: a pre-application course certificate from the year before you apply, and pediatric first aid and CPR before the home is registered or licensed. (Texas HHS, types of operations, 26 TAC ch. 747 (homes), 26 TAC §746.1601 (centers))
• Florida: A home becomes a regulated family child care home once it regularly cares, for pay, for children from at least two unrelated families. Licensed, a family child care home registers each year (four counties license instead) and may take, for example, 6 children with no more than 3 infants, or 10 children if no more than 5 are preschool age — household children under 13 count; a large family child care home is licensed for up to 12. Ratios: centers run 1 to 4 for children under 1 and 1 to 20 for four-year-olds. Training: a 30-hour family child care home course with a competency exam before you register. (Fla. Stat. §402.302, §402.305, §402.313, Florida DCF)
• Georgia: Up to 2 unrelated children — a family child care learning home begins at three children under 13 who aren't related to you, cared for in your home for pay. Licensed, a family child care learning home is licensed by Bright from the Start (the Department of Early Care and Learning) for three to six unrelated children under 13 at one time (the six-child cap counts children you care for unpaid too); seven or more children for pay is a child care learning center. Ratios: centers run 1 to 6 for infants under 1 (group of 12), 1 to 10 for two-year-olds and 1 to 18 for four-year-olds (group of 36). (O.C.G.A. §20-1A-2 (FindLaw), Ga. Comp. R. & Regs. 591-1-1-.02, 591-1-1-.32)
• New York: Up to 2 children — a family day care home starts at 3 children for more than three hours a day. Licensed, a family day care home is registered for 3 to 6 children (8 when at least two are school-age); a group family day care home is licensed for 7 to 12; centers in New York City answer to the city's health department instead. Ratios: centers run 1 to 4 for infants from 6 weeks to 18 months and 1 to 8 for four-year-olds. Training: a pre-application orientation and an approved health and safety course before registration, then 30 hours of training every two years. (Social Services Law §390, 18 NYCRR §417.8, §418-1.8, §417.14)
• Pennsylvania: Up to 3 unrelated children — the rules begin at four, five or six unrelated children, and care for your relatives doesn't count. Licensed, a family child care home holds a certificate of compliance (Pennsylvania's word for the license) for 4 to 6 unrelated children; a group child care home for 7 to 12; a center is 7 or more. Ratios: centers run 1 to 4 for infants (group of 8) and 1 to 10 for preschoolers, age 3 to kindergarten (group of 20). Training: the state's orientation within the 12 months before you open; the operator must be 18 with a high school diploma or GED, and staff take 12 clock hours of training a year. (55 Pa. Code §3290.3, §3290.4, §3270.51, §3290.31, OCDEL toolkit)
• Illinois: Up to 3 children — a day care home starts at more than 3, and your own children under 12 count toward that number; care for one household's children alone is exempt. Licensed, a day care home run by one caregiver takes up to 8 children under 12 including your own, with limits on how many are under 5 and under 2; a group day care home with an assistant takes 12 — and since 1 July 2026 the Illinois Department of Early Childhood issues the license, not DCFS. Ratios: centers run 1 to 4 for infants (6 weeks to 14 months, group of 12) and 1 to 10 for four-year-olds (group of 20). Training: 15 hours of pre-service training in the year before you apply, then 15 clock hours a year. (89 Ill. Adm. Code 406, Part 407, Part 408, Illinois Department of Early Childhood)
• Missouri: Up to 6 children at one address, no more than three of them under 2 — the license starts at a seventh child or a fourth under 2, and school-age children who live with you aren't counted. Licensed, a family child care home is licensed for up to 10 children and a group child care home for up to 20; a center is care outside the provider's own home, and the license comes from the Department of Elementary and Secondary Education's Office of Childhood. Ratios: centers run 1 to 4 from birth to 36 months (group of 8), 1 to 8 for a room of two-year-olds, 1 to 10 for three- and four-year-olds (group of 20) and 1 to 16 from age 5 (group of 32). (RSMo §210.211, DESE child care licensing, 5 CSR 25-400.010, 5 CSR 25-500.112)
• Iowa: Up to 5 children (6 when at least one is school-age) as an unregistered child care home — the count is per home, not per adult in it; registering as a child development home is optional below that line and required above it. Licensed, a registered child development home comes in three categories, each allowing more children as the training and standards rise; the rules describe a registered home as one that may care for seven or more children at a time, under Iowa Health and Human Services. Ratios: centers run 1 to 4 from two weeks to two years, 1 to 7 for two-year-olds, 1 to 10 for three-year-olds and 1 to 12 for four-year-olds. Training: first aid, CPR and mandatory child abuse reporter training before a home registers (Iowa HHS lists the three for every child care provider), plus the state's approved pre-service or orientation training. (Iowa Code §237A.1, Iowa Admin. Code ch. 441-110, ch. 441-109, Iowa HHS, Iowa Child Care Resource and Referral)
• North Carolina: Up to 2 children — the state regulates care for three or more children under 13 who don't live with you, for more than four hours a day at least once a week. Licensed, a family child care home is licensed for more than two and fewer than eleven children in the operator's own residence (the state's overview page still says fewer than nine — the rule was amended in 2025). Ratios: centers run 1 to 5 for infants up to 12 months (group of 10) and 1 to 20 for four-year-olds (group of 25). Training: the state's pre-licensing workshop before the first license is issued. (NC DCDEE, Getting a License, 10A NCAC 09 (Chapter 9 rules), license overview)
• Michigan: No license-free tier for unrelated children in regular care that the rules describe — the statute's exemptions aren't on a page we can link, so check them with the licensing bureau. Licensed, a family child care home is licensed for up to 6 unrelated children and a group child care home for up to 12; related children don't count toward the cap, though related children under 6 count in the home's 1-to-6 ratio. Ratios: centers run 1 to 4 for infants and toddlers up to 30 months (group of 12) and 1 to 12 for four-year-olds (group of 40). Training: 10 clock hours of training a year for the licensee, with CPR, first aid and infectious-disease training on top. (Mich. Admin. Code R 400.1908, R 400.1910, R 400.8222, R 400.1905)
• Nevada: The smallest licensed tier, a family home, begins at five children, so a home with four or fewer sits below the regulated tiers — the statute's exact exemption isn't on a page we can link, so confirm it with the licensing program before you open. Licensed, a family home is licensed for 5 to 6 children (no more than two under 1 or four under 2) and a group home for 7 to 12. Ratios: centers run 1 to 4 for babies under 9 months (group of 8), 1 to 6 from 9 months to 2 years, and 1 to 13 for four-year-olds (group of 26). Training: a written and oral orientation in the first two weeks of work, then set hours of training within 90 days — shaken-baby prevention, medication, building safety, emergencies. (NAC 432A.100, 432A.110, 432A.534, 432A.5205, 432A.320, 432A.323, Nevada Child Care Licensing)
• Virginia: Up to 4 children, not counting your own or any child who lives with you — a family day home serving five through twelve must be licensed, and one caring for more than four children under 2 (your own included) must be licensed or voluntarily registered. Licensed, a family day home is a program in the provider's residence for one through twelve children under 13, exclusive of the provider's own and resident children. Ratios: centers run 1 to 4 from birth to 16 months (group of 12) and 1 to 10 from age 3 to school age (group of 30). (8VAC20-800-10, 8VAC20-780-350)
• Washington: No head count — a license is needed for any ongoing, regularly scheduled care of unrelated children run as a business; caring for a neighbor's or friend's child now and then, paid or not, is exempt, as is care by relatives. Licensed, a family home license covers up to 12 children in the provider's own living quarters, counting children related to the licensee. Ratios: centers run 1 to 4 for infants through 11 months (group of 8) and 1 to 10 for preschoolers from 30 months to 6 years (group of 20). Training: the department's orientation for every applicant, and the Child Care Basics training before a license is granted. (RCW 43.216.010, WAC 110-300-0355, 110-300-0356, 110-300-0105, 110-300-0106, DCYF)
• Arizona: Up to 4 unrelated children — a child care facility is one that regularly cares, for pay, for five or more children not related to the proprietor. Licensed, a child care group home is certified by the Department of Health Services for five to ten children through age 12 in a residence; five or more anywhere else is a licensed child care facility. Ratios: centers run 1 to 5 for infants (or 2 to 11) and 1 to 15 for four-year-olds. (A.R.S. §36-881, §36-897, A.A.C. R9-5-404)
• Massachusetts: No head count — regular care of children in your home, paid or not, up to ten, is family child care and needs a license from the Department of Early Education and Care; informal arrangements among neighbors or relatives and occasional care are exempt. Licensed, family child care is 6 or fewer children with one educator (no more than three under 2), or 7 or 8 when the extra children are school-age; large family child care is 7 to 10 children with two educators. Ratios: centers run 1 to 3 for infants up to 15 months (group of 7) and 1 to 10 for preschoolers from 33 months to school age (group of 20, full day). (606 CMR 7.02, 606 CMR 7.10)
• New Jersey: Up to 5 children — only a child care center, which is six or more children under 13, must be licensed; a home with three to five children is a family child care home that registers voluntarily through a sponsoring organization. Licensed, a registered family child care home takes three to five children at a time for at least 15 hours a week, or up to eight when the extra children live with the provider and are under six; six or more children, not counting those who live in the home, is a licensed center. Ratios: centers run 1 to 4 for children under 18 months and 1 to 12 for four-year-olds. Training: eight hours of pre-service training from the sponsoring organization before registration. (N.J.A.C. 3A:52-1.2, 3A:54-1.2, 3A:54-6.1, 3A:52-4.3, 3A:54-5.2)

Not your state? childcare.gov's state-by-state resources list every state's child care licensing agency; start there and read the rules for your type before you spend anything. Ratios also have a national yardstick: the Caring for Our Children standard recommends that one caregiver in a small family home care for up to six children when none is under two, and for fewer as babies join the group — your own young children counted (standard 1.1.1.1, via Minnesota DHS). Read the thresholds carefully: several states count your own young children toward the limit, and “unrelated” usually means not your child, grandchild, sibling, niece or nephew.

From there the order is the same everywhere. Go to your state's orientation (Pennsylvania requires it within the 12 months before you open and issues a provisional certificate for up to six months, then a regular one for twelve; a complete application takes about 100 days to a certificate — OCDEL toolkit); check that your city, landlord or homeowners' association allows it, in writing; complete the training and background checks; prepare the space and pass the inspection; set your tuition and policies; then fill your spots. Our free daycare business plan lays out every startup line with typical costs, and Zarla's daycare website builder is how you get found once you're licensed. If you are the one becoming the provider — the checks for everyone in the house, the training hours, the pay — read how to become a daycare provider, which reads the same state rules from the provider's side.

Outside the US the shape is the same, with one regulator each. In England you register with Ofsted or a childminder agency to be paid to look after children under 8 for more than two hours a day (GOV.UK); the Early Years Register costs £35 a year (Ofsted fees, September 2026), and a childminder may care for at most six children under eight at once — no more than three of them young children, meaning under five until the 31st of August after their fifth birthday, and only one under one — own children included (EYFS framework for childminders, effective 1 September 2026). In Australia a new service needs provider approval and then service approval from the state regulatory authority under the National Quality Framework — New South Wales decides a complete service application within 90 days (NSW Department of Planning, 2022) — and a family day care educator may have up to seven children at a time, no more than four of them preschool age or under (WA Department of Communities, December 2021). In Ireland childminders working in their own home register with Tusla under the 2024 regulations, which took effect on 30 September 2024 with a three-year transition before registration becomes compulsory (Early Childhood Ireland, January 2026, Tusla); a registered childminder may have no more than six children, and no more than two under 15 months (S.I. No. 494/2024). In Canada the provinces regulate: in Ontario an unlicensed home provider may care for at most five children under 13, counting their own children under 4, with no more than three under two, and must tell parents in writing that the program is unlicensed; a home provider contracted to a licensed agency may take six (Ontario, May 2025). Wherever you are, confirm the current rules with your regulator before you enroll anyone.

Two sheets to have ready before the first family: our free daycare daily report template is the sheet that goes home in the cubby every day — bottles and meals with the times and amounts, naps, diapers and potty, the mood and a note for the family, the lines the infant rules in Texas and Ohio ask for — and the what-to-pack list on the same page is what a new family gets at the tour.