Opening a daycare is an ambitious and rewarding career choice. In the U.S., we need more childcare professionals to provide the essential care families need for their kids. But how do you start a childcare business safely, legally, and affordably?
First, you need to know which certifications you need to run a childcare business. What certifications and requirements do you need to meet first?
It depends:
- What type of daycare are you opening?
- What educational background do you have?
- Where are you located?
- What are your business goals?
All these things affect what you need to open a daycare business. Let’s look at the requirements and certifications you should consider when opening a daycare in 2024.
Nationwide Requirements for Opening a Daycare
While the licensing and business requirements depend on your state and county, there are national certifications that equip you to work with children. Obtaining these certifications before offering childcare is crucial.
First Aid and CPR Certifications
Childcare providers need to know how to respond to unexpected emergencies to maintain the safety and health of children in their care. Therefore, CPR and First Aid training are essential. Emergency response skills equip you to respond to life-or-death situations such as choking or cardiac arrest. Complete a certified CPR training near you. Certificates are valid for two years.
Food Safety in Childcare
Daycare operators must obtain food handling and safety training. Since you handle snacks for growing children, preparation must be sanitary and nutritious. The food safety certificate is based on the USDA guidelines: “Clean, Separate, Cook, Chill.” You can find online or in-person Food Safety training to obtain a certificate.
Child Development Associate (CDA Credential)
Having some level of credibility in early childhood education (ECE) is a major plus. It’s also highly valued by parents looking for childcare. Whether you have a college degree or not, a Child Development Associate credential is the most commonly recognized certification in the ECE profession.
While it’s not required, the CDA is a comprehensive training program that equips childcare providers with 120 hours of knowledge, skills, and readiness to support children in early development. Unless you have a bachelor’s or master’s degree in a field related to childcare, it’s a good idea to obtain a CDA to strengthen your competency and expertise.
Daycare Requirements That Vary by State
Many daycare certifications vary by state. For example, some states require you to be part of the Quality Rating and Improvement System (QRIS), whereas others do not.
Additionally, one of the most important aspects of childcare operation—licensing—differs from state to state.
Childcare License
To operate a daycare legally, you likely need to be approved for a specific childcare license. Some states don’t require small, at-home family childcare operations to be licensed, but others do.
Look up your state’s requirements on the Administration for Children & Families licensure web page. If you find that your daycare requires a license to operate, begin the training and application process before initiating a business plan.
Childcare Provider Requirements
Again, the required standards for childcare providers are specific to your state of residence. Requirements often include:
- You are at least 18 years of age
- You have a high school diploma or GED
- You pass criminal background checks
- You undergo state and federal fingerprinting
- You have some level of ECE background or credentials
Keep in mind that these are typically the minimum requirements. The more qualified, prepared, and experienced you are, the better your chances are of your daycare doing well.
Business License
Receiving income from your daycare is considered a business. Every state has different business laws but often involve registering your business, paying a fee, and preparing important tax information. Check with your state’s business licensing department for:
- Whether or not you require a business license to open a daycare
- What steps you need to take to register your business (if necessary)
- Safeguarding your daycare business (trademarks, taxes, legal advice, etc.)
In some states, if you want to operate a small at-home daycare independently and have no intentions to grow, a business license may not be required. Talk with a business advisor if you need clarity on your situation.
Capacity Requirements (Child-to-Staff Ratios)
Capacity laws—often known as child-to-staff, child-to-provider, or group ratios—are important to follow. These rules prevent inefficient supervision and encourage childcare manageability.
Group ratios vary by state but typically look something like 1:10 (1 childcare provider for every 10 children present), 1:7, or 1:14. It also depends on the size of the facility and children’s age.
Learn more about daycare supervision and group ratios at childcare.gov.
Fire, Health, and Safety Inspections
You can expect your state or local childcare department to conduct a facility inspection before you’re cleared to open your business. Daycare centers that operate out of a home must meet health, safety, and emergency codes. This verifies that your home or facility is suitable for children and customers.
Employee Background Checks
Daycare owners aren’t the only ones who need to pass criminal background checks. All supporting staff must also be able to clear a series of federal and state background screenings to ensure the safety of children in a vulnerable setting such as childcare. You can find employee and background check regulations on your state’s licensing department website,
Home Daycare Insurance
You may also need home daycare insurance to protect your property and assets from financial disasters. Even if you’re not required by your state to obtain insurance, it’s a good idea. Kids can get rowdy, things can break, and accidents happen. Protect your daycare (and home!) from irreparable or unaffordable damages.
More Resources for Opening a Successful Daycare Business
Opening a daycare involves meeting a lot of complex, specified requirements. More importantly, running a successful daycare business after it opens is a nonstop responsibility. You have to ensure compliance, safety, comfort, marketability, adequate care, and effective education to best serve your community.
Fortunately, digital tools and resources help busy daycare providers keep track of all the essential details of running a business smoothly. With a daycare management app like Daily Connect, you can organize your certifications and ensure all daycare tasks get completed.
Want to get a head start? Download the Daily Connect app today for a demo.
