Written by

Tara Farmer

July 11, 2025

Edited by

Kristen Cramer

Fact-checked by

Jennifer Carlson

Starting a daycare in California

Starting a daycare in California can be one of the most rewarding career decisions you'll ever make. You have the opportunity to shape young minds, support working families, and build a thriving business that makes a real difference in your community. While the process involves several steps and regulations, thousands of entrepreneurs successfully launch daycare businesses across the Golden State each year.

Whether you're dreaming of running a cozy home daycare or opening a larger commercial center, this step-by-step guide will help you navigate the process and confidently turn your childcare vision into reality.

Understanding California's daycare license types

California offers two licenses for aspiring daycare owners, each with distinct advantages and requirements. Your choice will significantly impact your startup costs, regulatory obligations, and growth potential.

• Family Child Care Homes (FCCHs): If you're looking to start a home daycare in California, this is the license you need to operate from your residence and serve a smaller number of children. Small FCCHs accommodate up to 8 children, while Large FCCHs can serve up to 14 children. These options typically require lower startup investments and offer more flexibility in your daily operations.

• Child Care Centers (CCCs): Child Care Centers operate in commercial facilities and can serve unlimited numbers of children based on space and staffing. These centers often generate higher revenue potential but require more substantial initial investments and ongoing operational costs.

Many successful daycare entrepreneurs begin with a Family Child Care Home and later expand to commercial Child Care Centers. This progression allows you to gain experience, build your reputation, and accumulate capital before making larger investments.

Do I need a license to open a daycare in California?

Every daycare serving children from multiple families must obtain proper licensing through California's Child Care Licensing Division (CCLD). You are exempt from licensing if you only provide care for your relatives or children from just one other family. The good news is the licensing process is straightforward when you understand the requirements.

Step 1: Meet basic provider requirements

California sets clear requirements for daycare providers, depending on the license type you pursue.

In-home daycare requirements in California

For a Family Child Care Home license, providers must:

• Be at least 18 years old.

• Live in the home where care is provided.

• Pass a criminal background check.

• Get a tuberculosis (TB) test.

• Complete 16 hours of Pediatric Health and Safety training from an accredited college or university or an approved vendor, including:

  • Preventative Health Practices

  • Pediatric CPR certification

  • Pediatric First Aid certification

  • Childhood Nutrition (1 hour)

For Large Family Child Care Homes, you must show proof of one year's experience as:

• A Small Family Child Care Home Licensee, or

• A teacher or director of a licensed Child Care Center.

Child Care Center requirements in California

Child Care Center licensees must meet additional educational and experience requirements, varying based on the staff position:

Step 2: Attend a mandatory orientation

Before you can apply for any daycare license in California, you must attend an online or in-person licensing orientation specific to your chosen license. This session covers legal requirements, health and safety standards, and the application process. There's a small, non-refundable fee for the orientation.

After orientation, it's crucial to review all relevant laws and regulations. Familiarize yourself with health codes, safety procedures, and your legal responsibilities. The California Department of Social Services (CDSS) provides comprehensive resources and rulebooks to help you stay compliant.

Step 3: Comply with California's daycare facility regulations

Meeting or exceeding all of California's home and facility requirements for daycares is crucial for both licensing compliance and operational success. California has specific space, staffing, and safety requirements that ensure adequate supervision and quality care.

Location

Your location significantly impacts both regulatory requirements and business success. Zoning compliance varies by municipality and facility type. Recent legislation (Senate Bill 234) prevents cities from requiring business licenses or zoning permits for Family Child Care Homes. However, commercial Child Care Centers still face zoning restrictions and may need conditional use permits in residential areas.

Capacity

Daycare capacity requirements vary significantly by age group and facility type. These ratios directly impact your capacity and staffing costs.

For Child Care Centers, capacity is determined by facility size, staff-to-child ratios, and local regulations. Staff-to-child ratio requirements are based on age:

• Infants (0 – 2 years old):

  • 1 Teacher: 4 Infants

  • 1 Fully Qualified Teacher and 2 Aides: 12 Infants

• Toddlers (2 – 3 years old):

  • 1 Teacher: 6 Toddlers

  • 1 Fully Qualified Teacher and 1 Aide: 12 Toddlers

• Preschoolers (3 – 5 years old):

  • 1 Teacher: 12 Children

  • 1 Teacher and 1 Aide: 15 Children

  • 1 Fully Qualified Teacher and 1 Aide (with 6 semester units): 18 Children

• School-age (6+ years old):

  • 1 Teacher: 14 Children

  • 1 Fully Qualified Teacher and 1 Aide: 28

Safety features

Safety is non-negotiable in any childcare facility. Your space must include working smoke detectors, fire extinguishers, secure storage for hazardous materials, and appropriate childproofing throughout accessible areas. Large Family Child Care Homes need two separate exits to the street, with specific restrictions on kitchen and garage access.

Equipment and supplies

Supplies and equipment should be age-appropriate and sufficient for your intended capacity. You'll need sleeping equipment like cots or cribs, changing tables or child toilets, educational materials, and toys suitable for different age groups. Quality equipment supports both licensing approval and positive parent impressions.

Cleanliness and maintenance

Standards for cleaning and maintenance apply to all areas children will access. Regular cleaning schedules, proper ventilation, separation of diaper-changing and food preparation areas, and ongoing maintenance are necessary and demonstrate your professionalism and commitment to children's health. These practices also help prevent illness and maintain positive relationships with families.

Step 4: Prepare your application package

The application process varies by license type, but both avenues involve extensive paperwork documenting your qualifications, background, and facility details. Family child care home applications require six forms plus supporting documentation, while child care center applications involve 15 forms and additional requirements like staff qualifications and operational plans.

Family Child Care Home license:

• Application form

• List of current children in your home

• Criminal record statements for all adults in the home

• Emergency care and disaster plan

• Statement acknowledging your duty to report suspected child abuse

• Facility sketch

• Proof of orientation completion and health and safety training

• Proof of TB clearance for all adults in the home

• Payment for application fees

Child Care Center license:

• Application form

• Detailed financial documents (operating statements, balance sheet)

• Personnel reports and health screenings

• Emergency and disaster plans

• Facility sketch and fire inspection info

• Proof of property control (lease or ownership)

• Staff qualifications and job descriptions

• Parent handbook and sample daily schedule

• Sample menu, equipment list, and more

Step 5: Pay licensing fees

Fees for daycare licensing in California vary depending on your license type and capacity:

Step 6: Prepare for inspection

Once you submit your application, a licensing program analyst will schedule a pre-licensing inspection for home-based daycares. They'll check for:

• Cleanliness and safety of the environment

• Working fire extinguishers and smoke alarms

• Proper storage of hazardous materials

• Emergency supplies and disaster plans

• Adequate space for children

Child Care Centers must also pass local fire and health inspections before opening.

Step 7: Wait for approval

After your inspection, the licensing division will review your application and inspection results. The entire process typically takes 60 to 90 days from submission to approval. Planning ahead ensures you can open your doors as soon as your license arrives.

California daycare business plan

A solid business plan provides your roadmap to success and helps secure financing when needed. Your plan should address all aspects of your operation from market analysis to educational philosophy to financial projections. Check out our in-depth guide for all the important details on How to Create a Winning Daycare Business Plan.

Step 8: Stay compliant and always improve

Maintaining your license requires ongoing attention to regulatory compliance and operational excellence. Ongoing compliance includes keeping children's health records current, doing regular safety checks, updating emergency procedures, and making sure any staff maintain their qualifications. It becomes second nature once you establish good systems.

Renewing your license

Once licensed, you must renew your daycare license every year. Submit your renewal payment before your anniversary date to avoid late fees. If you change your facility's capacity or move locations, additional fees may apply. Staying compliant with all health, safety, and reporting requirements is essential for keeping your license active.

Ongoing improvement

Regular self-assessment, parent feedback, and staff development will help you identify areas for quality improvement. Implement suggestions and address concerns proactively to prevent small issues from becoming major problems.

Continuing education will keep you updated on regulatory changes, best practices, and new educational methodologies. Many operators find that ongoing learning improves their services while ensuring compliance with evolving requirements. Investing in ongoing training also helps retain skilled staff.

Step 9: Grow your daycare business

Building a successful, thriving childcare business requires strategic marketing to attract new families and long-term planning to expand your services. The key is balancing immediate enrollment needs with your vision for the future.

Marketing your California daycare

Successful marketing builds awareness, demonstrates your value, and creates the trust necessary for parents to entrust their children to your care.

• Build a digital presence:

  • Register your daycare on TrustedCare, Google My Business, and other local directories.

  • Shareyour philosophy, programs, staff qualifications, and enrollment info on a user-friendly website.

  • Share updates, photos, and parenting tips on social media to connect with your community. Be sure to get parents' permission before using photos or videos of their children.

• Foster relationships: Attend local events, partner with schools, pediatricians, and local businesses to create valuable referral sources. Participating in community events and partnering with family-friendly businesses increases visibility and credibility.

• Offer referral perks: Ask happy parents for referrals. Offering enrollment credits, fee discounts, or other benefits for successful referrals can significantly boost enrollment while rewarding loyal families.

• Highlight unique programs: Offer specialized activities (arts, languages, STEM) to stand out.

Planning for growth

Even if you're starting small, think about where you want to be in five years. Expansion opportunities might include extending hours, offering additional services like tutoring or camps, or opening additional locations.

Keep in mind successful expansion requires careful planning and adequate financing. Understanding the requirements for growth helps you make smart decisions now that won't limit your options later.