Starting a daycare business in California can be a lucrative endeavor. It’s a great way to turn your passion for working with children into a profitable business. Before you can get your daycare business off the ground and running smoothly, there are important steps you need to take to get the required licenses.
Our guide covers the different types of licenses for childcare businesses in the state of California and provider requirements. We also discuss the steps to complete an application and how to stay compliant with licensing requirements.
You need a childcare license in California if you provide care to children from multiple families. However, you are legally license-exempt and don’t need a childcare license if you provide care for only a relative's children or children from one other family in addition to your own.
Childcare licensing in California is managed by the Child Care Licensing Division (CCLD) of the California Department of Social Services (CDSS). The department oversees childcare businesses in California, ensuring that they operate within the confines of state laws. The department's mission is to ensure that childcare providers abide by state health and safety standards set for daycare businesses.
California approves two types of daycare licenses: Family Child Care Home Licenses for family childcare homes (FCHs) and Child Care Center Licenses for childcare centers (CCCs). You will need the Family Child Care Home License to start and operate a daycare in your home. A Child Care Center License is necessary if you plan to operate a facility in a commercial building. You may seek a California daycare license as an individual, group, or institution.
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In addition to having a childcare business plan, you must also comply with state licensing requirements. Below are the provider and capacity requirements for family childcare home providers and childcare center providers.
The following are licensing requirements mandated by state law:
The following are the capacity regulations for small and large family childcare home licenses:
The following are staff qualifications for childcare center providers:
Director:
Fully Qualified Teacher:
Below are the staff-to-child ratio requirements regarding infants, toddlers, preschoolers, and school-age children:
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Below are the steps to take when applying for the Family Child Care Home License or Child Care Center License in California.
For a comprehensive review of California daycare regulation rules, check out Child Care Provider Registration and the California Child Day Care Act.
The first step is to attend an online or in-person childcare licensing orientation. Depending on what type of childcare business you are starting, attend the Family Child Care Home License orientation or the Child Care Center License orientation.
The orientation is crucial for introducing you to the requirements of starting and operating a daycare business in California. You’re also required to pay a non-refundable orientation fee. It’s recommended that you meet the minimum threshold for a Family Child Care Home or Child Care Center license application before signing up for the orientation.
Next, familiarize yourself with the relevant family childcare home licensing or childcare center licensing laws and regulations.
The next step is to complete and submit your application package. Depending on which type of license you will need, complete the Family Child Care Home License application or the Child Care Center License application.
Below is a quick rundown of California’s family childcare home and childcare center fees.
Lastly, you’ll need to prepare for a pre-licensing inspection if you apply for a family childcare home license. A licensing program analyst will reach out to you after you’ve completed and submitted your application package. They’ll be checking for the overall cleanliness of the home, working fire extinguishers, smoke alarms, and telephones, proper storage of hazardous materials, and more. Here is a full list of the requirements for the inspection.
The entire application process takes between 60 and 90 days.
After you’ve secured a license to start and operate a daycare business in California, you will need to renew your operating license annually to remain compliant. Submit your license renewal payment before your facility’s anniversary date via online payment, money order, or check. You’re liable for a late payment fee if you don't submit your annual fee on time. Late fees include an extra 50% of the annual license renewal fee. You are also required to pay a $25 fee if you change your facility’s capacity or 50% of the application fee if you move to a different location.
As you go through the licensing process, you may come across grants or other funding resources that can help fund your childcare business. A grant is an often overlooked financial resource given by a government agency or private foundation that does not need to be repaid. This makes them an attractive funding option if you are looking to expand or enhance the quality and accessibility of your program.
Grants provide funding that can be used towards a variety of purposes, such as improving facilities, purchasing new equipment or materials, or offering professional development opportunities for staff. The available resources vary by state so it is crucial to research and understand the grants for childcare providers in California to make informed decisions about which ones to apply for.
Obtaining a daycare license is a crucial first step in operating a daycare business in California. Depending on the details of your daycare business, you can apply for a family childcare home license if you plan to run your business at home, or a childcare center license if you plan to operate in a commercial building. With careful planning and preparation, you can navigate all of California’s licensing requirements and start focusing on the next stage of your business.
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