How to start a home daycare: the steps, in order
Updated
The short answer
Start with your state's licensing agency, because the rules for a home daycare differ by state: how many children you may care for before you must be licensed, the training and background checks you need, the home inspection, and the written policies you must give parents. Once you know the rules, set up your business, pass the inspection, write your policies and contract, and enroll your first family.
The steps, in order
- Find your state's child care licensing agency and read the rules for family or home-based child care. Note the home types (for example registered or licensed, small or large) and the number of children each allows.
- Check local limits. City or county zoning, a homeowners association, or a lease may restrict child care in your home. Ask before you spend money.
- Complete the required steps. Typically an application, background checks, training such as first aid and CPR, and a home inspection. The list and the order are your state's, not ours.
- Insurance and business basics. Ask your own insurance agent whether your homeowners policy covers child care, and set up a separate bank account and a simple record of income and expenses. A tax adviser can tell you what applies to you.
- Set your rates and hours. Look at what nearby providers charge, decide on weekly or monthly tuition, and decide which days you close.
- Write your policies and contract. A parent handbook for how you run the program, and an enrollment contract for each family. See the guides below.
- Enroll your first family. Give them the handbook and contract, answer their questions, and keep a signed acknowledgment before the child's first day.
Where the rules are
Search for your state's name with "child care licensing" and look for the agency's page for family child care homes. Some states have an online rule book; others have a handbook for providers. Daycare Handbook and Contract Builder cites the rules for Texas, California and Florida home daycares next to each handbook section, with a link to the official text and the date we checked it. It does not decide whether your program meets any rule; your licensing agency does.
The faster path: Daycare Handbook and Contract Builder turns your answers into a finished handbook and a contract for each family, and parents sign online. It is free for one family and one signature request; the Provider Pack is $49 a year. The builder is launching soon; see pricing.
Daycare Handbook and Contract Builder is document-assembly software, not a law firm. It is not a substitute for the advice of an attorney. It is not affiliated with or approved by any state licensing agency.