How to open a daycare center in Maryland

Opening a daycare in Maryland is a rewarding opportunity to positively impact children's lives while building a sustainable business. The state has a strong demand for quality childcare, making it an ideal environment for new operators.

Whether you envision a small in-home daycare or a larger commercial center, this guide will walk you through Maryland's licensing requirements and all the steps to open a daycare, from initial planning to long-term success.

Daycare licensing options in Maryland

All childcare providers in Maryland must be licensed through the Maryland State Department of Education's Office of Child Care (OCC), which has 13 regional offices across the state. The type of license you need depends on the size and location of your daycare.

In-home daycare requirements in Maryland

Maryland offers two licenses for home-based daycares, allowing you to create a warm, nurturing environment.

A family child care home license allows you to care for up to eight children in your residence. No more than two children can be under age two, and your own children under six count toward the total. This option is perfect for those starting small or wanting to care for their own children while earning an income.

A large family child care home license allows you to care for up to 12 children. This license limits you to four children under age two and requires additional staff when you have more than eight children. It offers a path to higher profitability while maintaining a home-like feel.

Maryland childcare center requirements

A child care center license allows you to operate in a commercial facility that meets local zoning requirements. This option provides the greatest potential for growth, with capacity determined by the building's square footage. Centers typically serve larger groups and require more extensive staffing and planning, but they also offer the greatest opportunity for community impact and expansion.

Training and certification requirements

Before opening your doors, Maryland requires you to complete specific training to ensure you can provide a safe, high-quality environment. These requirements vary slightly by license type but focus on child development and safety.

Core pre-service training

All providers must complete 24 clock hours of approved pre-service training before approval. This training covers:

• Child development

• Curriculum

• Health and safety

• Special needs

• Professionalism

• Community resources

• Emergency and disaster planning

• Americans with Disabilities Act (ADA) compliance (3 clock hours)

Required certifications

In addition to core training, you will need several health and safety certifications:

• Medication Administration Training (MAT): A 6-hour classroom course

• Supporting Breastfeeding Practices: Approved training for inclusive infant care

• CPR and First Aid: Current certification appropriate for the ages you serve (from the American Heart Association or American Red Cross)

• Sudden Infant Death Syndrome (SIDS) Training: Required if caring for children under 24 months (completed within 5 years of application)

• Basic Health and Safety Training: Must be completed within 90 days of employment for center staff

Ongoing training

Once licensed, you must meet ongoing training requirements:

• First year: 18 clock hours of approved training

• After first year: 12 clock hours annually for teachers and directors (at least 6 hours in core knowledge)

• Certification renewals: CPR and first aid certifications must remain current.

Maryland daycare licensing: the step-by-step process

Getting licensed involves several important steps. Planning ahead and staying organized will help you navigate the process efficiently.

Step 1: Complete orientation

Your first step is a mandatory two-part orientation. You must complete the self-paced online orientation for your chosen license type on the OCC website. Afterward, you must attend a second mandatory orientation at your regional licensing office, where you can ask questions and receive guidance on local requirements.

Step 2: Prepare your facility

Before inspection, ensure your facility meets all safety and space requirements:

• Permits & zoning: Secure local occupancy, fire, and health permits.

• Space per child:

  • Centers: 35 square feet indoor / 75 square feet outdoor

  • Homes: 35 square feet indoor (30 if licensed before 1971)

• Health & Environment:

  • Verify lead-safe status (if built before 1978).

  • Follow all health department rules for food storage, handling, and allergen management.

  • Keep all areas hazard-free.

• Emergency Readiness:

  • Create written plans for evacuation, shelter-in-place, and parent communication.

  • Install and maintain smoke detectors, carbon monoxide detectors, and fire extinguishers.

  • Keep first aid kits and emergency medications like EpiPens immediately accessible.

Step 3: Submit your application

Submit your completed application form at least 60 days before your anticipated opening date. Choose the appropriate form based on your license type:

• OCC 1230 for family homes

• OCC 1240 for large family homes

• OCC 1200 for centers

Your application package must include supporting documents like signed abuse/neglect record permissions, criminal background checks with fingerprinting, and recent medical evaluations.

Step 4: Pass inspections

Your facility will be inspected by local fire, health, and other agencies to verify compliance. While OCC inspections are free, local authorities may charge fees. Inspectors will review everything from emergency exits to food preparation areas. If your application is complete and your facility passes all inspections, you should receive your certificate of registration within about 30 days.

Maryland daycare staffing requirements

Proper staffing is crucial for ensuring adequate supervision and quality care. Maryland sets specific staff-to-child ratios and qualification requirements.

*For mixed‐age groups, the ratio depends on the youngest children in the group.

In-home daycare staffing

Maryland has specific requirements for each staff position, designed to maintain high standards across all programs. For family and large family child care homes, staffing requirements include:

Operator/Director requirements:

• At least 21 years old; high school diploma or equivalent

• 90 clock hours (6 semester hours) of approved early childhood coursework or CDA

• 3 additional semester hours related to child care administration

Teacher requirements:

• At least 19 years old; high school diploma or equivalent

• 90 clock hours of approved preservice training:

  • 45 hours in child development

  • 45 hours in curriculum

• Experience with infants or toddlers

Child care center staffing

For Maryland child care centers, the staffing qualification requirements vary based on the number of children being cared for:

Universal requirements for all staff

All staff members must pass state and federal criminal background checks via electronic fingerprinting and a review of abuse/neglect records. They must also complete communication and ADA compliance training.

Ongoing professional development is mandatory, with annual training hours required for all positions to stay current with best practices—12 clock hours for teachers and directors and at least 6 hours for aides and assistant teachers.

Startup costs and finding funding

Starting a daycare requires a significant investment, but various funding opportunities can help make your dream achievable.

Initial investment needs

Daycare startup costs vary widely based on your chosen license type and location. Family child care homes might need $5,000 to $20,000, while centers can require $20,000 to $100,000 or more. Major expenses include facility preparation, equipment and supplies, insurance, training costs, licensing fees, and marketing.

Grants and additional funding opportunities

Financial assistance opportunities for daycare providers in Maryland include:

• Child Care Quality Incentive Grant (CCQIG): Provides grants to providers who achieve high ratings in Maryland EXCELS, the state's quality rating system

• Licensing Compliance Grant: Reimburses family child care providers up to $1,000 for expenses needed to meet compliance

• Child Care Capital Support Revolving Loan Fund: Offers no-interest loans for capital expenses like renovation, expansion, or new construction

• Child Care Career and Professional Development Fund (CCCPDF): Supports professionals seeking to advance their education and training

Ongoing compliance & growth

A license is just the beginning! Long-term success depends on maintaining compliance and continuously improving your program.

Renewals and inspections

You must renew your license every two years, which includes submitting updated documents and passing inspections. All facilities are subject to annual inspections, which may be announced or unannounced. If violations are found, you must take corrective action promptly to avoid further enforcement.

Record keeping

Good record keeping demonstrates your professionalism and protects your business. Maintain comprehensive records, including:

• Staff training certificates

• Children's enrollment forms

• Health records

• Attendance records

• Incident reports

Digital record keeping systems can streamline this process while ensuring you always have necessary documentation available. Many providers find specialized childcare management software helpful for maintaining compliance.

Quality improvement

Participate in Maryland EXCELS, the state's quality rating and improvement system, to demonstrate your commitment to quality beyond the minimum standards. Achieving higher ratings can qualify you for additional grants, attract more families, and justify higher tuition rates.

Building a successful Maryland daycare

While meeting licensing requirements is the foundation, a thriving business requires more.

• Business plan: Create a comprehensive daycare business plan that outlines your services, target market, staffing needs, and financial projections to guide your decisions and help secure funding.

• Insurance: Invest in liability insurance to protect your business. Work with an agent who understands the unique risks of childcare operations.

• Marketing: Join TrustedCare for free to reach families searching for daycare in your area. Promote your daycare through social media, local ads, and community outreach. Positive word-of-mouth from happy families will be your most effective tool. Build relationships with local employers and pediatricians to generate referrals.

• Professional development: Join professional organizations like the Maryland State Child Care Association or Maryland Family Network to access networking opportunities, advocacy, and valuable resources.

Your ongoing commitment to quality, professional growth, and strong family partnerships will be the key to your success. The children and families waiting for excellent care make every step of the journey worthwhile.