Home Daycare Startup Checklist — Everything You Need in 2026

If you've been Googling "how do I start a home daycare" at midnight, you're exactly who I built this home daycare startup checklist for. After 15 years of running my own licensed home daycare — and helping hundreds of new providers get started — I know exactly what gets missed, what gets rushed, and what trips people up before they ever open their doors.

This is the list I wish I'd had on day one. Bookmark it. Print it. Work through it in order.

Phase 1: Legal and Licensing

Nothing happens until this is done. Licensing isn't just a bureaucratic hoop — it teaches you things that keep children safe and protects you legally and financially.

• Research your state's requirements — Search "[your state] family child care licensing" to find your specific regulations. Requirements vary wildly: some states allow up to 12 children in a home, others cap at 4.
• Contact your local licensing office — Get the official application packet. Ask what inspections are required and the typical timeline.
• Complete required training hours — Most states require CPR and First Aid certification, plus child development coursework. Budget 20-40 hours.
• Pass background checks — Everyone living in your home over 18 typically needs fingerprinting and a background check. Start this early — it can take weeks.
• Apply for your EIN — You're running a business. Get an Employer Identification Number from the IRS (free, takes 10 minutes at IRS.gov). You'll need it for taxes and banking.
• Open a dedicated business bank account — Mixing personal and business finances is the number one accounting mistake new providers make.
• Get liability insurance — General liability plus professional liability. Budget $300-600/year. Some states require it as a condition of licensing.

Phase 2: Space Setup and Safety

Your home inspection will check for specific things. Get ahead of it — don't wait for the inspector to find problems.

• Childproof every room children will access — Outlet covers, cabinet locks, stair gates, secured bookshelves, cords out of reach.
• Fire safety — Smoke detectors on every level, carbon monoxide detectors, fire extinguisher accessible to adults only, evacuation plan posted.
• Set up your dedicated care space — A room or clearly defined area for childcare activities. Licensing requires a minimum square footage per child in most states.
• Sleep setup — Separate approved sleep surfaces for each child (cots, cribs, or pack 'n plays depending on age). Safe sleep practices for infants are non-negotiable.
• Outdoor play area — Fenced, free of hazards, inspected. Check for poisonous plants, standing water, broken equipment.
• First aid kit — Stocked and accessible to you, out of reach of children. Keep it refreshed.
• Create your learning zones — Art, dramatic play, blocks/building, books, sensory. Materials at child height, organized, rotated to keep engagement fresh.
• Post required signage — Your license, emergency numbers, evacuation plan. Your licensing office will tell you exactly what's required.

Phase 3: Business Foundations

This is the part most new providers skip — and then wonder why year two is a mess. Don't be that person.

• Write your parent handbook — Hours, holidays, sick child policy, late pickup fees, payment terms, discipline philosophy. Write it before you enroll your first family. Have an attorney review if you can swing it.
• Draft your enrollment contract — A signed agreement protects you and sets expectations. It includes tuition, schedule, termination terms, and a reference to your handbook.
• Set your rates — Research your local market. Price in the middle-to-upper range. You are licensed, trained, and professional. If you feel guilty charging full price, read what I wish I'd known when I started — underpricing is the fastest path to burnout.
• Decide on payment methods — Tuition management apps like Procare or Brightwheel make invoicing and payment tracking easy. Cash and Venmo make bookkeeping messy. Choose wisely.
• Set up your bookkeeping system — Spreadsheet minimum, accounting software ideally. Track every expense — supplies, mileage, food program reimbursements, home use percentage.
• Register for the CACFP food program — The Child and Adult Care Food Program reimburses you for meals and snacks served to enrolled children. Free money. Many providers leave thousands on the table by not enrolling.

Phase 4: Filling Your Spots

You've done the hard setup work. Now you need families. Here's where to start:

• Tell your network — Post on your personal social media. Email people you know. Text your neighbors. The first two or three families usually come from your existing network.
• Create a Facebook page for your daycare — Even a basic page with your location, hours, and philosophy starts building credibility. Join local parenting and childcare Facebook groups.
• List on Care.com and local childcare resource sites — Many county childcare resource agencies maintain free provider directories. Call yours.
• Connect with your local childcare resource and referral agency (CCR&R) — They refer families to licensed providers in your area. Getting on their list is free and worth it.
• Build a waitlist before you open — Ideally you have at least 2-3 confirmed families before your first day. A waitlist gives you financial security and leverage to stay selective about who you enroll.

Phase 5: Opening Day Prep

• Do trial visits before start dates — A 1-2 hour visit with parent present helps children transition and gives you a chance to build rapport.
• Stock your supply closet — Diapers, wipes, art supplies, spare clothes (multiple sizes), cleaning products, paper towels. You'll run low faster than you expect.
• Set up your daily documentation — Attendance records, incident/injury reports, and daily communication logs are required in most states. Start the habits from day one.
• Plan your first week's activities — Keep it simple. Relationship-building, learning the schedule, and outdoor play. Fancy curriculum comes later — connection comes first.
• Join a provider support community — Online groups, local associations, or a mentor provider. You need someone who gets it.

The One Thing That Changes Everything

After 15 years, the providers I've seen thrive have one thing in common: they treat this like a business from the very first day. Not a favor. Not a flexible babysitting gig. A professional, licensed, mission-driven business that happens to take place in their home.

That mindset shapes everything — how you price, how you communicate with parents, how you set boundaries, how you plan for growth. If you're ready to do this right, my free 5-day mini-course walks you through the full setup in detail — licensing, space, finding families, pricing for profit, and creating policies that protect you.

Start My Free Course →

You've built the checklist. Now go build the business. 💜