How to Start a Childcare Business in Pennsylvania

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If you’re thinking about starting a childcare center in Pennsylvania, now is a great time to do so. The state of Pennsylvania needs new childcare providers as families are searching for alternative options after many childcare closures and caregiver resignations. Starting up a new daycare or childcare facility is a worthwhile and rewarding mission where you can serve your community, earn a decent income, and uplift children’s development.

Pennsylvania’s family-friendly policies and vibrant economy make childcare an essential service. But how do you start a childcare business in Pennsylvania? In this article, we explore some of the first steps you need to take when preparing to open a childcare business. Read until the end to decide if this is the right decision for you!

What are the Childcare Licensing Requirements in Pennsylvania?

Before opening a childcare facility, learn about the legal and credentialed requirements expected of you. Primarily, you’ll need to get licensed if you plan to provide care to more than three children who are not related to you. The Pennsylvania Department of Human Services (DHS) handles childcare licensing through the Office of Child Development and Early Learning (OCDEL).

To get licensed, you first need to know what type of facility you plan to operate. Each type of childcare business has different requirements according to the state of PA. For example:

  • Family childcare homes provide care for four to six children (who are not related) in the business owner’s home.
  • Group childcare homes are at-home facilities that provide care for seven to 12 children who are not related.
  • Childcare centers are facilities that provide care for more than seven children, whether in a home or a designated building. 

As a minimum requirement, you can expect to complete a set of mandatory training hours, a first aid and CPR certification, and criminal background checks. You’ll also need to pass a health and safety screening for whichever facility you intend to operate out of, whether your home or a commercial space. Your facility must meet standards regarding the amount of space, classroom equipment, staff-to-child ratios, emergency responses, and sanitation.

Complete Your License Application for Pennsylvania Childcare Providers

After you know what’s required of you, it’s time to start the licensure application process. This involves a series of important steps that will be outlined in the childcare provider requirements for the type of childcare you intend to run. While there are application forms that vary, they typically require the same set of steps.

1. Obtain an Occupancy Certificate

Before you begin the initial orientation for the childcare application, you need to provide a certificate of occupancy. This lets the licensure department know that you live in one of the zones that is appropriate for childcare. You can get this certificate from your local municipality

2. Attend the Mandatory Orientation and Training

You must attend the mandatory online orientation as stated by the OCDEL. This training prepares you for the entire application process.

After you finish the online orientation, you must sign up for the in-person training. This training details everything you need to become licensed including documentation, understanding childcare regulation laws, potential business requirements, and more. 

3. Complete and Submit Your Documents via PPSS

At this point, it’s time to fill out the required documents. These include:

  • Proof of completed training
  • Background checks (for you and your staff)
  • Facility floor plans
  • Health and safety certificates
  • Proof of liability insurance
  • Program policies and procedures

The documents required in your application will depend on the type of center you’re opening. You can view a full list of Early Learning Requirements on the Pennsylvania DHS website

When completed, you will submit your application and all related documents via the Pennsylvania Provider Self-Service (PPSS) portal. Make sure you save your login information on the PPSS account you create because this portal is where you’ll manage your license renewal and submit new forms if there are ever regulatory changes. 

4. Pay the Licensing Fee

When you submit your childcare provider license application, you will also have to pay the required fee. This can range from $20 to $80. Once everything is submitted, the OCDEL will review your application and notify you of the acceptance status. 

5. Prepare for a Pre-Licensing Inspection

Another part of the application process involves an on-site inspection of your facility. Someone from your regional childcare development office will contact you within 45 days after submission to schedule an in-person inspection. 

This inspection checks to see if your location complies with DHS childcare safety and health standards. If you pass this inspection, you’ll then receive your official childcare license! Once you have this, your next step is to focus on the business development aspect of your childcare center

Maintain the Pennsylvania Daycare Compliance

Even though getting your license is a long process, it’s just the beginning. You also need to set up your childcare operations to strictly follow these rules year after year. This means:

  • You must renew your license every 12 months. 
  • You must pass annual facility inspections. 
  • You must stay informed about any updates or changes to childcare regulations and best practices. 
  • You and your staff must self-assess childcare policies, procedures, and emergency plans to ensure ongoing compliance.

As a tip, mark your calendar for your license renewals each year. These are due 60 days before the expiration date. Never let your license expire—this can get you into financial and legal trouble, potentially damaging your business. 

Implement Pennsylvania Early Education Guidelines

Pennsylvania has early childhood education guidelines that ensure providers deliver high-quality care. Get to know these guidelines and age-appropriate developmental goals so that you can implement them into your curriculum. This not only sets up your students for academic success but it also makes you stand out as a preferred childcare leader in your area. 

Have a Childcare Business Plan

You’ll also need a refined business plan to open your business. Define your business structure including the services you offer, your teaching philosophy, age groups you serve, hours of operation, and more. 

Develop a financial plan to cover startup costs, recurring expenses, projected revenue, and emergency savings. Consider what types of marketing strategies you’ll use to promote your services and start filling enrollment. What about your employees? Calculate how much you need to pay your staff, including training, benefits, and retention incentives. Consider the immediate and long-term goals to help you stay focused and motivated.

Sign Up for Pennsylvania Childcare Management Software: Daily Connect

To simplify your childcare processes once you open your doors, it’s a good idea to implement a childcare management software. The Daily Connect platform streamlines your administrative tasks like attendance tracking, parent billing, staff scheduling, learning assessments, and documentation. With fewer administrative tasks, you can focus on what matters most—caring for the children. 

From parent-teacher communication to staff management, Daily Connect can save your business time and money by streamlining everyday tasks. See how it works with a free trial of the Daily Connect app today, and visit the website for related resources on opening a childcare center. 

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